Senate Report on Financial Literacy Features Alliance Research and Tools

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More “just-in-time” help needed to promote effective action.

A U.S. Senate report grappling with financial literacy in retirement has highlighted the work of the Alliance for Lifetime Income.

The report, released by the Senate’s Special Committee on Aging, is titled “Financial Literacy in Retirement: Providing Just-in-Time Information and Assistance to Older Americans and People with Disabilities.”

The committee examined the challenges people face making complex and lasting decisions about income, savings, health care, and insurance. It notes that significant number of adults don’t plan for even common pre-retirement and retirement decisions and more advance planning is needed.

“We’re gratified to see the Alliance’s hard work and research make its way to the highest levels of government,” said Jean Statler. “As the committee rightly points out, financial literacy is a critical challenge for people at all stages of life. That’s why we’re focused on helping consumers and financial professionals with educational resources, interactive tools, and actionable research and insights to use in building retirement income strategies and plans.”

According to the report, the committee sees the need for “just-in-time” financial information and support for people who are making important financial decisions, such as claiming Social Security, enrolling in Medicare, and annuitizing a 401(k).

“People making these decisions must take into consideration many factors,” the report concludes. “More ‘just-in-time’ support is needed to help promote effective action, such as understanding tradeoffs; risks and costs involved in the specific decision; finding a trusted source of information and advice; and avoiding fraud and scams.”

Three Alliance financial education tools were cited by the committee:

Check Off the Basics:

A guide to planning for essential expenses in retirement. This tool helps your clients take the first steps in figuring out their essential expenses and income in retirement, and how protected lifetime income from an annuity can help fill any gaps. It demonstrates to your clients how using a portion of their savings to purchase an annuity can help them “Check Off the Basics” and cover their essential monthly expenses and help them live retirement the way they want.

Next step: Download a copy of Check Off the Basics and add it to your client meeting toolbox. Use it at your next meeting. Learn more here.

Financial Planning Personality Quiz Client Engagement Tool:

Knowing your client’s financial planning personality allows you have more successful conversations as you put in place strategies and products to help them reach their financial goals. The tool produces five separate facts sheets based on personality types. It also includes a guide for financial professionals that provide insights and resources that can lead to better discussions so you can address client concerns or opportunities in order to help them reach the financial independence they desire.

Next step: Use the personality quiz tool with your clients. Learn more here.

Alliance Tools & Guides:

The Alliance’s suite for financial professionals and consumers currently features eight resources. The interactive tools and guides explain retirement financial planning concepts, include checklists to help you and your clients discuss these issues, and assist your clients in determining if their retirement savings are on track to fund the kind of retirement lifestyle they want.

Next step: As you prepare for upcoming client meetings, take some time to explore the Alliance’s tools and guides. You’ll find them useful in helping make your meetings more interactive and successful. Learn more here.

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