Study Shows Correlation between Education and a Better Retirement

 Posted on October 27, 2014 in Estate Planning

A recent study confirms that the more education a person has, the better off they are when it comes to retirement nest eggs and planning for the future.

The study was conducted by the National Center for Policy Analysis (NCPA) and used data and statistics provided by the U.S. Census, the Survey of Consumer Finances, the Bureau of Labor Statistics, and the Social Security Administration.

According to the data used for the study, each year of education a person has beyond 12th grade represents a 1 percent increase in the likelihood of employment in their senior years. For example, a person who has a bachelor's degree has a four time better rate of working than a person who only has a high school diploma.

Another statistic that appears to be affected by higher education is disability in retirement years. According to the Census data, the majority of the approximately 25 percent of seniors who reported having independent and self-care living difficulties did not have college educations.

There are currently 37 million senior citizens collecting Social Security retirement benefits. There too, education makes a difference. The data revealed that on average, college graduates receive almost $8,500 in annual retirement income separate from Social Security. The average high school graduate's yearly income is $6,500.

Sadly, 60 percent of today's retirees have no other income other than Social Security. That is over 22 million people. For every year of education past 12^th grade a person completes, there is a 3 percent increase in the likelihood that person will have another retirement income source other than Social Security.

It is never too early to begin estate planning. If you need help developing an estate plan in Illinois, contact Stock, Carlson & Asso. LLC. Our experienced DuPage County estate planning lawyers offer solutions to protect your rights and assets and help you plan for a better retirement. We can assist clients in Downers Grove, Hinsdale, Lombard, Naperville, and throughout DuPage County. To schedule a consultation, please contact our office at 630-665-2500.