AARP Home | Contact AARP | Site Map | May 12, 2008

Policy and Research | AARP The Magazine | AARP Bulletin

Your Money

The Bulletin Poll: Financial Literacy

October 2007

Email This Page To A Friend

Print This Page

Our exclusive monthly survey reveals that financial matters mystify many Americans, as shown by poll respondents' answers. How much do you know?

How much of her husband's Social Security benefit is a widow eligible to receive at her full retirement age even if she never worked under Social Security?

	Overall	40-59	60-plus
All of his Social Security benefit*	41%	45%	35%
Half	27%	26%	28%
None	5%	5%	3%
Don't know	26%	22%	33%

Which of the following are common mistakes people make with their 401(k) retirement plans?

	Overall	40-59	60-plus
Not contributing any funds of their own	4%	4%	3%
Not making a large enough contribution to earn a full employer match	5%	6%	5%
Withdrawing funds before retirement	8%	7%	10%
Cashing out rather than rolling into other investments when changing jobs	9%	11%	5%
All of the above*	57%	65%	43%
Don't know	18%	8%	34%

Which of the following health-related expenses does Medicare NOT cover?

	Overall	40-59	60-plus
Annual physical exams	3%	2%	3%
Most dental care	24%	21%	28%
Hearing aids	10%	8%	13%
All of the above*	31%	32%	29%
Don't know	34%	36%	32%

If your credit card is stolen and someone spends $1,000 with it before you report it missing, what amount are you responsible to pay?

	Overall	40-59	60-plus
All	14%	15%	13%
Half	2%	2%	1%
$50*	43%	49%	33%
Don't know	36%	28%	50%

How often should you check your credit report?

	Overall	40-59	60-plus
Every time you use your credit card	9%	9%	10%
At least once a year*	64%	69%	54%
Once every 5 years	12%	13%	10%
Don't know	13%	7%	24%

TRUE OR FALSE

By federal law, if you purchase a new or used vehicle at a car dealership, you have three days to cancel the purchase.

	Overall	40-59	60-plus
True	63%	65%	61%
False*	19%	21%	15%
Unsure/Don't Know	18%	14%	24%

If you only pay the minimum payment required on your credit card balance, you will be able to pay off your entire credit card debt over time.

	Overall	40-59	60-plus
True	31%	35%	26%
False*	59%	61%	57%
Unsure/Don't Know	9%	4%	18%

If you are of full retirement age or older AND employed, you may keep all of your Social Security benefits, no matter how much you earn at your current job.

	Overall	40-59	60-plus
True*	32%	29%	36%
False	53%	58%	45%
Unsure/Don't Know	15%	13%	18%

The full retirement age for Social Security benefits is no longer 65. It is gradually increasing to 67 for people born in 1943 or later.

	Overall	40-59	60-plus
True*	63%	61%	67%
False	20%	24%	15%
Unsure/Don't Know	16%	15%	18%

A woman age 65 today can expect to live to 85.

	Overall	40-59	60-plus
True*	74%	74%	73%
False	18%	19%	16%
Unsure/Don't Know	8%	7%	11%

Some people have to pay federal income tax on their Social Security benefits.

	Overall	40-59	60-plus
True*	57%	54%	62%
False	26%	30%	20%
Unsure/Don't Know	17%	16%	18%

Buying a single company stock usually provides a safer return than a stock mutual fund.

	Overall	40-59	60-plus
True	16%	17%	14%
False*	49%	56%	39%
Unsure/Don't Know	34%	27%	47%

In 2007, workers can contribute a maximum of $15,500 to their 401(k) retirement plans, but those 50 and over can add $5,000 extra to help them "catch up" on their savings.

	Overall	40-59	60-plus
True*	39%	44%	30%
False	16%	19%	11%
Unsure/Don't Know	45%	37%	59%

Identity theft is more often initiated from the Internet than from paper sources.

	Overall	40-59	60-plus
True	50%	52%	48%
False*	30%	36%	20%
Unsure/Don't Know	20%	12%	32%

Bankruptcy is growing faster among Americans 65 and older than any other age group.

	Overall	40-59	60-plus
True*	32%	31%	35%
False	48%	53%	41%
Unsure/Don't Know	19%	16%	25%

* Correct answer

Survey of 1,031 adults age 40 and over conducted by ICR between Aug. 10 and Aug. 27, 2007.

Advertisement