Hear What Experts Say About the New Retirement Income Literacy Study
The American College of Financial Services released the findings of the fourth wave of the Retirement Income Literacy Study at a New York City premiere event attended by invited guests from the media and institutional partners of The College on February 13, 2024.
Based on a 38-question financial literacy quiz, the research aims to assess older Americans’ level of knowledge on topics they need to understand for effective retirement planning. The questions cover various aspects of retirement planning, such as the ideal age for filing for Social Security and the impact of interest rates on bond prices. The results reveal that in the decade since the first wave of research began in 2014, the needle has not moved. On average, respondents only answered 31% of the questions correctly, indicating a lack of financial literacy on topics related to retirement income.
At the premiere event, top academics from The College shared their initial insights and “aha” moments sparked by the new research. Here's a look at highlights from the panel discussion led by Steve Parrish JD, RICP®, CLU®, CHFC®, AEP®, featuring researchers Michael Finke, PhD, CFP®, Kaylee Ranck, PhD, Chet R. Bennetts, CFP®, CHFC®, CLU®, RICP®, CLF®, and Eric Ludwig, PhD, CFP®—in their own words:
Parrish: Call it financial literacy, you could call it knowledge, you can call it understanding—but whatever it is, we know that these are important pieces of information [individuals must know] in order to make smart decisions about their own retirement…It's very important because it affects millions of people and affects their well-being. Think about things like the fact that so few of us have defined benefit contracts anymore, right? It's defined contributions and IRAs, and that means that in accumulating you have to figure out how to do it yourself. In distribution and decumulating, you have to figure out how to do it. You don't have your employer doing it. Key decisions like Medicare and Social Security, those are decisions that have to be made fairly early in retirement, but they stick for the rest of your life.
Finke: Target-date funds have been a success in the accumulation stage, but it's actually divorced people from having to make decisions about their own retirement. And what ends up happening is that when people start to see the end zone approaching, once they hit their fifties, they start realizing that they have no idea how much money they've saved, how they've invested, what their options are for generating income in retirement, and they have no idea what sort of risks they're exposed to…There is a general social phenomenon, especially for these generations like the younger Baby Boomer generation and Gen Xers who are approaching retirement, who have been in this sort of soft bubble-wrapped environment of accumulation. Now what do we do with them once they start decumulating? It's no wonder that they're experiencing anxiety.
Ranck: What we find through a lot of the research is that individuals [score better] when they have to experience something. For example, when they get closer to being Medicare-eligible in age, their knowledge score around Medicare increases because it's an experience that they have and the knowledge that they need in order to get through that particular transition. We see that with several of the scores.
Bennetts: I specifically looked at some of the retirement concerns [and] the two that had the highest average across the board were Social Security cuts and inflation. Those were two of the bigger ones. And that's something I think we can all agree that even the best financial advisor, best financial planner in the world is not going to be able to wave a magic wand and help someone with. Rightfully so, maybe that's a higher level of concern from the consumer with or without an advisor. However, when you added an advisor, there was an impact and those concerns did decrease. And in part, I'm sure, because of the preparation and the conversations [between financial advisors and clients about] “How do we handle…?” or “How do we anticipate those things?” from the psychosocial and behavioral side of it. [What] I thought was cool was the fact that when we have professionals—professionals whom, as an institution, we're charged with training and giving the most relevant information—that dramatically decreased [respondents’ answers] to the tune of 20% on the anxiety side and 25% on the stress side.
Ludwig: If you ask people how they viewed the stock market over the next 12 months, that was a significant predictor [of what they would do with their portfolio]. Basically for each level of optimism, that led to another 10% higher likelihood that they didn't do anything with their portfolio. Those who had an advisor [were] twice as likely to maintain [their] portfolio during the market volatility of 2022 as opposed to those who did not… From a practical aspect [what we recommend to advisors is] having them check in with their clients and asking them, “How do you view the stock market over the next 12 months, what is your market outlook?” [That may] be a significant predictor of what they're going to actually do with their portfolio.
The research underscores the need for better education about retirement planning geared toward those who are approaching or in retirement age. With robust results from surveying more than 3,765 Americans aged 50 to 75, the Retirement Income Literacy Study research team plans to release additional cuts of the data to provide deeper analysis into topics highlighted here—plus additional topics yet to be revealed.
To learn more about the findings and what the research reveals about the educational role of financial advisors, read the study here.
Recognizing the 2023 NextGen Financial Services Award Recipients
NextGen Financial Services Professional Award
The NextGen Financial Services Professional Award honors young professionals under the age of 40 who made a significant impact in the financial services industry and have shown outstanding performance and leadership in their careers, with a desire to give back to the community.
The winners from 2023 include:
Michael Acosta, CFP®, CSLP, ChFC®
Michael is a Certified Financial Planner® (CFP®) at Genesis Wealth Planning, LLC in Charlotte, North Carolina. A first-generation Colombian-American, he attended Wingate University on a lacrosse scholarship and graduated with a Bachelor of Science in Accounting and a minor in Economics. Michael spent the first four years of his career working for a wealth management platform before transitioning into his current role as a financial advisor.
Kay Blunck, CFP®, ChFC®, CAP®, CRPC®
Kay is a wealth advisor with Inspired Wealth Advisors at Thrivent Financial. She enjoys creating holistic and individualized financial plans for each client’s unique circumstances. Kay also serves on the board of a local nonprofit, Military Missions. She finds joy in meeting with nonprofits and teaching their board members about different gifting strategies her clients are adopting and how they can incorporate these strategies into their fundraising efforts. She is a graduate of the University of Kentucky.
Akeiva Ellis, MSFP, CPA/PFS, CFP®, ChSNC®
Akeiva is a CFP® Board Ambassador whose financial expertise has been quoted in numerous media outlets, including Refinery 29, NPR, Business Insider, and CNBC. As the co-founder of The Bemused (with her husband), she has helped tens of thousands of young adults improve their finances through online video content and coaching programs. She has been recognized by the AICPA with a Standing Ovation Award in Personal Financial Planning, been named an industry Rising Star by Financial Planning magazine, been identified as a Luminary in Diversity and Inclusion by ThinkAdvisor, and she is the youngest person to be named to Investment News’ prestigious 40 under 40.
Hannah Kanstroom, CAP®, MSW
Hannah is a Senior Vice President and philanthropic strategist for the National Consulting and Advisory Practice at Bank of America Private Bank, based in Boston, Massachusetts. In her role, Hannah delivers customized consulting and advisory services to nonprofit clients’ boards of directors, investment committees and senior leaders. Her areas of focus include strategic planning, mission advancement, next gen engagement, nonprofit governance, and board dynamics. She holds a Bachelor of Arts in Psychology from Boston College and a Master’s in Social Work with a focus on Corporate Social Responsibility and Nonprofit Management from Columbia University.
Padric H.B. Scott, AEP®, CFP®, CAP®, ChFC®, CLU®, WMCP®, CCFC
Padric graduated from Florida A&M University (FAMU) with a Bachelor of Science in Molecular Cell Biology. He then began his Master's at FAMU, until he stopped to accept a contract to play in the
NFL for the Arizona Cardinals. Padric's professional football career spanned five years, with stops in the Arena Football League and the Canadian Football League. Today, Padric serves as both CEO and Founder of Crossroad Capital Partners, a full-service equity and estate planning practice founded in 2018 that serves as an umbrella organization for his consulting engagements, partnered with Northwestern Mutual. Based out of Tallahassee, Florida, Crossroad is currently licensed in 43 states.
From the looks of these five accomplished professionals, the next generation is here now, and the industry is in good hands.
Honoring the 2023 President’s Award Recipient, Mary Wright
President's Award: Mary M. Wright, CAP®
Conferred by The American College of Financial Services’ President and CEO, the President’s Award recognizes the leadership and generosity of select benefactors and volunteers. The College is proud to announce the 2023 winner: Mary Wright.
Mary Wright attended Yankton College in Yankton, South Dakota, where she met and married Charles R. Wright, known to many at The College and elsewhere as Chuck. Together, they were leading donors to the Center for Women in Financial Services and helped to establish the State Farm Women’s Chair. Mary’s years of service through philanthropy led her to complete her Chartered Advisor in Philanthropy® designation at The College, so she could explore more ways of helping others engage in philanthropic work, as well. Mary was honored to work with The College in not only funding but in creating the scope and direction for the work that became the Wright Fellowship in the Center for Women in Financial Services.
Mary is a special example of the enduring relationships The College has been fortunate to develop, and we are so pleased to be able to recognize what that relationship has meant and continues to mean to us and everything we do here.
Honoring the 2023 Huebner Gold Medal Recipients
In 1975, as The American College of Financial Services approached its 50th anniversary, the Board of Trustees decided to honor those whose role in the development of the institution was of special significance. The Huebner Gold Medal, named for The College's founder, Solomon S. Huebner, is The College’s most prestigious honor and is awarded to people who, through support and dedication to The College and its programs, have moved the institution forward in its mission.
The College awards the Huebner Gold Medal each year at its annual President’s Dinner. The 2023 President’s Dinner was held this past November at the Barnes Foundation, located in the heart of Philadelphia’s beautiful museum district.
Margaret I. Bradshaw, CLU® (posthumously)
This year, we celebrated two recipients. First, we remembered and paid tribute to the late Margaret I. Bradshaw, CLU®. Margaret was a trailblazer, a successful businesswoman, an exemplary advocate of ethics in the insurance industry, and so much more. In 1931, she became the first woman in the United States to earn the Chartered Life Underwriter® (CLU®) designation. At that time, in the early days of The College, few agents recognized the CLU® —and fewer understood the value of applied knowledge in the insurance industry, or the significance of the designation. Over a relationship with The College that spanned seven decades until her passing at the age of 106 in 2011, Margaret often credited the CLU® for professionalizing the industry and elevating its practitioners in the eyes of the public.
Margaret broke down barriers and paved the way for other women to succeed in the insurance industry. At The College, she was known for the Margaret Bradshaw Lecture Series and generous investment in the Center for Ethics in Financial Services. She was a tireless advocate for ethics and professionalism. She believed that financial services professionals have a responsibility to put the needs of their clients first and she always led by example. She saw the potential of The College to make a difference in the industry—and the world.
Phillip C. Richards, CLU®, RHU®
We also recognized Philip C. Richards, CLU®, RHU®. Phil is the Executive Chairman and Founder of the North Star Resource Group and a member of The College’s Alumni Hall of Fame. Among his many contributions, he has helped drive The College’s growth as an alumnus, a board member, and a champion of our shared mission. In honor of his own mentor and a prior recipient of the Solomon S. Huebner Gold Medal, Phil helped create the annual endowed Maurice “Maury” L. Stewart Lectureship program. He also supported the One Person and Invest in the Future capital campaigns.
Phil embodies The College’s belief in the value of lifelong learning. North Star represents a fully integrated array of financial services and products for individuals and businesses of all sizes and has over 140,000 clients with offices in 22 states with client assets under administration exceeding $10 billion. In addition, he is an adjunct professor emeritus for the Carlson School of Management at the University of Minnesota and former adjunct professor at Central University of Finance and Economics in Beijing.
The American College of Financial Services Welcomes New Officers and Members to Board of Trustees
KING OF PRUSSIA, PA – February 28, 2024 – The American College of Financial Services has named the new chair and vice chair of its Board of Trustees in addition to recently electing four new members. Salene Hitchcock-Gear, JD, president of Prudential Individual Life Insurance, assumes the title of Board chair after serving as vice chair since 2022. Brandon Carter, CLU®, ChFC®, CFP®, president of USAA Life Insurance Company, will serve as the new vice chair. Additionally, the Board welcomes Lisa Davis, MSM, Kristin Ferguson, Brad Montgomery, CLU®, ChFC®, CPCU®, FLMI®, HIA, CASL, and Matt Spriggs as its newest elected Trustee members. These appointments reflect The College’s commitment to recruiting top-tier talents to bolster its mission of educating and empowering financial services professionals.
“I am beyond pleased to congratulate Salene and Brandon on their new roles and welcome more distinguished industry leaders onto the Board,” says George Nichols III, CAP®, president and CEO at The American College of Financial Services. “The College takes great pride in maintaining a high standard of excellence when it comes to financial services education. We are confident that the collective expertise provided by Lisa, Kristin, Brad, and Matt will advance both The College and the collective financial services field into the future.”
As the new chairperson, Hitchcock-Gear is enthusiastic about the opportunity to work alongside the Board’s new members and share their insights with The College. “By providing a quality education today, we are ensuring a more robust financial services field tomorrow — it’s a critical dynamic that I and each of our new appointees fully appreciates,” says Hitchcock-Gear. “It’s a privilege to be able to collaborate with financial services professionals who value the importance of a meaningful education.”
Salene Hitchcock-Gear, JD, is president of Prudential Individual Life Insurance, leading the unit offering competitive solutions to meet the needs of consumers via a diverse portfolio of life insurance products. An industry veteran with more than 30 years of experience, Hitchcock-Gear joined Prudential in 2017 as chief operating officer of Prudential Advisors, the company’s national sales organization with more than 3,000 financial professionals, advisors and fee-based financial planners who offer clients a broad range of financial solutions. She was appointed president of both businesses in 2018. Previously, Hitchcock-Gear served as president and CEO of Ameritas Investment Corp. and president and CEO of Acacia Life Insurance Company. She is the executive sponsor for the Women Empowered employee affinity group at Prudential, serves on the Board of Trustees of The College, and sits on the Life Insurance Committee of the American Council of Life Insurers.
Hitchcock-Gear is an alumna of the University of Michigan and New York University School of Law, holds FINRA Series 7 and 24 securities licenses, and is a member of the New York State Bar Association. She is also a board member of the University of Michigan Alumni Association.
Brandon Carter, CLU®, ChFC®, CFP®, is president of USAA Life Insurance Company and multiple subsidiaries. He has responsibility for the strategy and operations for product management and distribution, actuary, underwriting, servicing, and claims across the life, health and annuity portfolio and is leading the digital transformation of the business while preserving USAA’s legendary service. The USAA family of companies provides insurance, banking and investment and retirement solutions to more than 13 million current and former members of the U.S. military and their families.
Carter is a graduate of Texas A&M University and joined USAA in 1997. In his 26 years with the company, he has held multiple executive leadership positions focused on sales, marketing, service, operational efficiency, and transformation. He serves on the Board of Trustees of The College and is an active board member for Tragedy Assistance Program for Survivors (TAPS), a non-profit organization providing comfort, care and resources to families grieving the death of a military loved one. Previously, he served as Chair of LL Global, the parent company of LIMRA and LOMA and was a member of the Board of Directors for the American Council of Life Insurers (ACLI).
Lisa Davis, MSM, is managing principal of Penn Mutual Life Insurance Company’s Philadelphia-based agency, 1847Financial. She has held the role since 2020 and has led the way in developing the firm’s advisers, leaders, and overall team practice. Davis has been with the firm for more than a decade and served as its director of practice development and managing director prior to assuming her current title. Throughout her time with 1847Financial, Davis has facilitated considerable gains in the firm’s footprint through expansions to Delaware, New Jersey, and Florida in addition to overseeing more than 100 financial advisers.
Before joining 1847Financial, Davis directed business development with DVFG Advisors, LLC. She is a graduate of Cornell University and an alumnus of The College, having earned a master’s degree in science of management and leadership.
Kristin Ferguson is a senior vice president at Securian Financial Group. She has worked with the St. Paul, Minnesota-based firm for more than 20 years and currently directs Individual Solutions, a division that includes the company’s individual life insurance and individual annuities business lines. Ferguson’s responsibilities within the subset encompass everything from supervising product development and risk management to sales and distribution. She first joined Securian Financial as a college intern in 2001 before being onboarded as a full-time employee in 2002. In that time, she has overseen an array of varied actuarial responsibilities — including the development of sophisticated hedging programs and the enhancement of the company’s asset liability management process — and held several leadership roles.
Ferguson holds a bachelor’s degree in mathematics and economics from Iowa State University and is a fellow of the Society of Actuaries (FSA), a CFA charter holder, and a member of the American Academy of Actuaries (MAAA).
Brad Montgomery, CLU®, ChFC®, CPCU®, RICP®, FLMI®, HIA, CASL, is Senior Vice President – Agency for State Farm. He has accrued more than 30 years of experience working for the national insurance provider, having first joined the company in 1991 as a leader in Life & Health operations. He later served as a State Farm Agent in the St. Louis area, eventually moving into Agency Field Leadership and serving in a number of executive roles. Prior to his current role leading Agency Operations and Corporate & Business Development for State Farm, Brad served as Vice President in Life, Health & Investment Planning Services.
Prior to his time with State Farm, Montgomery earned his bachelor’s degree in business administration specializing in finance from the University of Missouri. He is also a graduate of the Harvard Business School’s General Management Program.
Matthew Spriggs joined Truist Insurance Holdings in 2021 as CIO and oversees all aspects of technology, cybersecurity, and innovation for the enterprise and its subsidiaries including AmRisc, BenefitMall, CRC, Crump, Kensington Vanguard, McGriff, and Starwind. Matthew is a results-driven technology executive with over twenty years of leadership experience in software engineering, infrastructure operations, digital transformation, consumer banking, and insurance brokerage.
Prior to his appointment as the CIO for Truist Insurance Holdings, Matthew served as the Truist Financial Corporation CIO for Consumer and Small Business Banking along with many other roles. His teams were responsible for the JD Power award winning U Mobile application and the successful integration of hundreds of systems enabling Branch, ATM, Contact Center, Deposit, Lending, Mortgage, Credit Cards, and Debit Cards related to the merger between BB&T and SunTrust. Matthew earned a bachelor’s degree from the University of Memphis and an MBA from the University of North Carolina at Greensboro.
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ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES
Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.
Contact:
Sarah Tremallo
908-967-0381 / stremallo@jconnelly.com
Lindsey Allumbaugh
678-643-1310 / lindsey.allumbaugh@theamericancollege.edu
Ethics In Financial Services Insights
AI Ethics in Financial Services Summit to Examine Challenges of Artificial Intelligence
On April 2, the American College Cary M. Maguire Center for Ethics in Financial Services will host an AI Ethics in Financial Services Summit in New York City examining governance and ethics challenges of AI use in financial services.
Crafted as an immersive and educational meeting of financial experts spanning diverse corporate roles, the event aims to assist leaders frame governance and ethics considerations relating to the use of AI. The discussions will center around crucial aspects, some of which include:
- The ethical risks of AI in finance: From fairness concerns to biased algorithms, we'll explore the potential pitfalls and how to mitigate them.
- Restoring trust through responsible AI: Learn best practices for developing, deploying, and governing AI ethically and transparently.
- The future of AI in insurance underwriting: Gain insights into the latest regulatory updates and ethical considerations in this critical area.
As the financial services industry grapples with the ever-expanding role of AI, this summit stands as a beacon for forward-thinking professionals. It provides a unique opportunity to engage with industry leaders, share insights, and collectively shape the narrative around responsible AI integration.
Amidst the complex challenges faced by global leaders, the recent World Economic Forum annual meeting in Davos assumed a pivotal role in addressing the pressing need for rebuilding trust between business and society. As governments navigate increased societal division and armed conflicts worldwide, CEOs expressed mixed sentiments regarding how to best navigate instability and the escalating influence of AI. This highlights the critical importance of acknowledging and navigating the intricate landscape of AI while concurrently working towards restoring trust in the global community.
This summit will showcase eminent speakers encompassing regulators, researchers, and industry leaders. Notable among them is Kathleen A. Birrane, currently serving as the Insurance Commissioner at the Maryland Insurance Administration. Additionally, Jillian Froment will be sharing her expertise in her role as the Executive Vice President and General Counsel at the American Council of Life Insurers (ACLI), while Arezu Moghadam will contribute valuable insights as the Managing Director and Global Head of Data Science at J.P. Morgan Asset Management. Furthermore, Reva Schwartz will bring valuable perspectives to the discussion as a Research Scientist at the National Institute of Standards and Technology.
Explore our AI Ethics Summit details and additional speakers. If you are interested in attending and would like an invite, email us at ethics@theamericancollege.edu.
To learn more about artificial intelligence in financial services, you can explore further with research findings from the Center for Ethics in Financial Services.
Katie McGowan
EdD, PMP®
Paxon Stofcheck
Diana Cabrices