Financial Literacy and the Future of Retirement Security
by Dana Fischel, ACP, CAS
Retirement is a timeless topic that transcends age and demographics. It encompasses various aspects such as financial planning, lifestyle changes, and emotional well-being. Saving for retirement is a crucial financial strategy at any age. Regardless of when you start, the principles of effective retirement savings remain consistent.
Financial literacy is critical for personal and economic well-being as it involves understanding and managing financial resources through budgeting, saving, and investing. Moneyzine, an online magazine, published results from the 2024 Woodall and Hodges study titled Financial Literacy Statistics: Financial Knowledge by Key Demographics, which showed the following key findings: the percentage of US adults with poor financial literacy rose from 20% in 2017 to 25% in 2023. Gen Z and Gen Y show the lowest financial literacy rates among US generations, respectively answering only 38% and 45% of the index questions correctly. A gender gap still exists, with 62% of US adult males demonstrating financial literacy compared to 52% of females. Financial literacy is also related to income, with only 28% of Americans who earn less than $25,000 per year being financially literate. In 2023, the lack of financial literacy cost Americans an estimated $388 billion.i
On December 29, 2022, the Consolidated Appropriations Act of 2023 (HR 2617) became law.ii Among its many components is a significant expansion of retirement plan legislation, known as the SECURE 2.0 Act of 2022. Building on the original SECURE Act from 2019, it introduces a range of updates aimed at strengthening retirement readiness. These enhancements are designed to encourage employers to offer retirement plans and help employees save more effectively for the future.
Ronald Ulrich, the Vice President of Product Consulting and Compliance for ADP Retirement Services, shared what this means. “Beginning in 2025, employers who start new retirement plans after December 29, 2022, will be required to automatically enroll employees in their retirement plan at a rate of at least three percent but not more than 10 percent of eligible wages. Employees may opt out. New companies (in business for less than three years) and employers with 10 or fewer workers are excluded from this requirement.”iii
The Secure Act 2.0 also benefits part-time workers who have been with a company for two consecutive years, working between 500 and 999 hours per year. They must now be allowed to enroll in their company’s retirement plan. One of the most significant changes is related to age. The SECURE Act 2.0 increases the age for taking required minimum distributions (RMDs) from retirement plans from 72 to 73, as of 2023. In 2033, the age will go up again to 75. The law applies to 401(k) plans, 403(b) plans, and IRAs, among others.iv
What about gig workers? According to the July 2023 Contingent and Alternative Employment Arrangements news release by the Bureau of Labor Statistics, 4.3% of workers, encompassing 6.9 million people, held a “contingent” job as their primary or only job. The news release defines contingent jobs as “those people do not expect to last or that are temporary.”v This type of work is commonly known as a gig. Unlike traditional employees who often have access to employer-sponsored retirement plans with matching contributions, gig workers must navigate retirement planning on their own.
In her opinion piece in The Post and Courier from September 29, 2025, Commentary: Gig economy helps power economy, but its workers can’t retire, Romi Savova shares a sobering statistic: “Only 13 percent of single-person business owners are saving for retirement compared to nearly three-fourths of Americans in traditional jobs. That leaves tens of millions of freelancers and independent workers at risk, just as other forms of retirement security begin to falter.”vi This gap highlights a growing vulnerability in the workforce, as independent workers face significant financial insecurity and lack adequate retirement savings. Without targeted policies or greater access to retirement planning tools, millions of freelancers may struggle to achieve financial stability later in life.
Rising life expectancy, shifting job structures, and the decline of traditional pensions make financial literacy more essential than ever for retirement security. When individuals understand saving, investing, and long-term planning, they are better equipped to build resilience and independence as they grow older. Strengthening financial education through schools, workplaces, and community programs offers one of the most effective pathways to closing retirement funding gaps and ensuring that more Americans can face the future with confidence.
This article was submitted by NALA’s Diversity, Equity, & Inclusion (DEI) Committee.
Dana Fischel, ACP, CAS, has worked as a litigation paralegal for over 20 years in a probate law firm in San Bernardino, California. Dana obtained her BA in human development with a concentration in gerontology from California State University, East Bay. She has a paralegal certificate, a Professional Fiduciary Management Certificate, and an Accounting for Governmental and Nonprofit Organizations Certificate from the University of California, Riverside. She is currently enrolled in the University of Maryland, Baltimore’s Gerontology Master’s Program with a specialization in thanatology. Dana has served for over 15 years as a Board Director and Treasurer of the Inland Counties Association of Paralegals. She is a member of NALA’s Diversity, Equity, & Inclusion (DEI) Committee.
i Woodall, I., & Hodges, K. (2024, November 18). Financial Literacy Statistics: Financial Knowledge by Key Demographics. Moneyzine. https://moneyzine.com/personal-finance/financial-literacy-statistics/.
ii H.R.2617 – Consolidated Appropriations Act, 2023. 117th Congress (2021-2022). congress.gov. https://www.congress.gov/bill/117th-congress/house-bill/2617.
iii Ulrich, Ronald. (2023, January). What Is the SECURE Act 2.0? Everything You Need to Know. ADP SPARK. https://www.adp.com/spark/articles/2023/01/secure-20-act-of-2022-makes-sweeping-changes-to-retirement-savings-plans.aspx.
iv Id.
v News Release. (2024, November 8). Contingent and Alternative Employment Arrangements — July 2023. Bureau of Labor Statistics. https://www.bls.gov/news.release/pdf/conemp.pdf.
vi Savova, Romi. (2025, September 29). Commentary: Gig economy helps power economy, but its workers can’t retire. The Post and Courier. https://www.postandcourier.com/opinion/commentary/us-gig-economy-freelancers-lack-retirement-system/article_2a9b16e4-2aff-4c54-bf87-326f64bf1577.html
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