Exploring Retirement Savings Gaps and the Mitigating Factors.

This study uses data from the 2022 Survey of Consumer Finances to estimate retirement savings gaps and identify factors that may reduce them. Findings reveal that using financial planners and having high levels of objective financial knowledge are associated with reduced retirement savings gaps. Conversely, an above-average willingness to take risks was associated with increasing retirement savings gaps. These results carry meaningful implications for financial planners, counselors, and educators striving to address retirement savings challenges. For financial planners, the findings emphasize their pivotal role in reducing retirement savings gaps by offering expert guidance and helping clients manage the intricacies of retirement planning. For financial counselors and educators, results emphasize a pivotal role in fostering financial literacy, a key factor linked to improved retirement outcomes. Moreover, educators in schools and community programs should advocate for application-based financial education starting at an early age. [ABSTRACT FROM AUTHOR]