Transamerica warns of US financial literacy gap
Transamerica and the MIT AgeLab published a study examining how middle-income Americans handle financial risks and prepare for their futures. The research revealed that more than half of the participants felt confident about their money decisions, but only half understood basic financial concepts. This gap means many families may not recognize their vulnerability to health expenses, income loss, or insufficient life and disability protection.
The study found that people trust financial professionals and insurers more than digital sources for guidance on coverage options. Transamerica said advisers should focus on building trust and explaining how protection products support financial stability rather than pushing sales. More than 90 percent of respondents valued retirement savings, yet 26 percent expected to never completely stop working. The research surveyed 1,326 adults with household incomes between 50,000 and 200,000 dollars from October through November 2024.
