Two-thirds surveyed said there was at least one area in which they felt not confident. Image: Hyejin Kang/Shutterstock.com
Of financial decisions, those related to retirement were among those where the deciding person has the least level of confidence, according to a survey by the National Endowment for Financial Education.
The survey of some 1,000 adults found that four-fifths had made a significant financial decision within the last 12 months in areas including making decisions on matters such as savings, insurance or a major purchase. Of those age 60 and above, two-thirds said there was at least one area in which they felt not confident (for those in the 18-29 and 30-45 ranges, it was above four-fifths).
When asked to pick the three areas in which they had the least confidence, the most commonly cited, by more than a tenth each, included withdrawing from savings, investment or retirement accounts, saving money with a specific goal in mind such as retirement and selecting a retirement plan or specific investments for retirement or non-retirement accounts.
In contrast, areas where people felt the most confidence in their decisions included savings with a goal in mind (35%), paying off a significant debt (21%), opening or closing a credit card or line of credit (20%), managing taxes independently (17%), deciding on insurance plans (13%), and making a significant purchase (12%).
A follow-up analysis of why people did or didn’t feel confident in their decisions found that males “are significantly more likely than female respondents to say they felt confident because they had prior knowledge (48% vs. 41%) and to say they made and learned from a similar decision in the past (45% vs. 36%). Conversely, females are significantly more likely to say they felt confident because they had people they could consult with in making the decision (43% vs. 28%).”
“This poll also sought to understand the external resources individuals utilize when making financial decisions. Overall, 84% of adults use at least one external resource, with consulting family members (51%), Google or other online search engines (35%), friends (28%) and financial professionals from financial institutions (25%) being the most popular resources,” it said.
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