Transamerica, in collaboration with the MIT AgeLab, has released fresh insights into the financial behaviors, confidence, and literacy of middle-income Americans. "Better Together: Improving Financial Wellness in America" is the latest collaboration between MIT AgeLab and Transamerica, blending academic insight with practical financial planning tools to help people make the most of what's important to them.

The results revealed a paradox: despite a growing abundance of readily available financial tools and content, financial literacy levels have remained static.

"Financial advice is everywhere, but trust is not. By understanding what resources people turn to, and why, we can offer more tailored education and support to meet them where they are," said Gregg Holgate, head of Inforce Management and Client Engagement for Transamerica Savings and Investments. "For each situation, our focus is on what's possible and how we can help more people live their best life."

Key Findings:

• Confidence vs. Literacy: Over half of respondents expressed high confidence in their financial acumen, yet only 51% answered four or five basic financial literacy questions correctly.

• Retirement Readiness: While just over 90% of respondents view retirement savings as "very" or "extremely" important, 26% expect never to fully retire. 

• Trusted Advice Sources: Internet searches and family/friends are the most used sources for financial guidance, but financial professionals and banks are the most trusted. Financial professionals had a mean trust score 30% higher than social media.

"Our research shows that while most Americans want to retire, many don't believe they'll be able to," said Dr. Joseph Coughlin, founder, MIT AgeLab. "Bridging the gap between financial goals and expectations is essential to improving long-term wellness."

The whitepaper also highlights the importance of tailored financial education and the role of financial professionals in bridging the gap between confidence and competence. The survey results indicate there is room for improvement for preparing for retirement, especially lower income households, and financial professionals have an important role to play in serving those needs.

Methodology
An online survey was fielded to a nationwide U.S. sample drawn by DialSmith between October 29 and November 16, 2024. A total of 1,326 participants completed the survey. Respondents had to be at least 18 years of age and to have household incomes between $50,000 and $200,000. The sample was further stratified by age and gender to ensure that there were sufficient cases to draw comparisons across groups. Survey items included measures of people's financial wellbeing, where people sought information about financial matters, knowledge of finances, and demographic characteristics.

Qualitative work with respondents in the demographic took place between November 2023 and May 2024. Sessions with financial professionals were conducted between January and March 2024.