The Center for Retirement Research at Boston College has published an article on the impact that financial knowledge can have on your ability to increase your retirement savings. The article highlighted a recent report by the National Bureau of Economic Research that found those who scored higher on a financial knowledge test earned more in their 401Ks. The study showed that these individuals earned an additional 1.3 percentage points of investment returns annually on their retirement accounts. Over a 30-year period, that higher rate of return could add 25 percent to total savings at retirement.
Financial Knowledge Test
The Center offers a short financial knowledge test to gauge how much you know.
Read the entire article here.