[S]tate officials put the focus on financial literacy this week and painted a bleak picture of how well Vermonters are prepared for retirement.
Gov. Phil Scott and Treasurer Beth Pearce announced an effort Thursday to better deliver information to Vermonters on how to manage their personal finances. The goal of the group is to figure out what programs are in place and whether any overlap or need to be strengthened.
The governor said one out of four Vermonters spends more than they earn, one out of three make the minimum payment monthly on their credit cards and half of Vermonters are carrying significant debt, much in the form of student loans. Also, about half of Vermonters have enough savings to last three months in case of sickness, job loss, or a major car repair.
Scott cast the need for financial literacy as also key to his goal of growing the economy.
The review of financial literacy programs was recommended by the Financial Literacy Commission, a 12-member group created in 2015 and called on to improve financial literacy, including budgeting and saving.
Vermont has a large percentage of elderly. According to Pearce, many Vermonters are “ill-prepared for retirement.”
Later, the treasurer said, “It’s never too late to plan and start to save,” while stressing the advantages of starting to save early.
Thomas Levitt, a Financial Literacy Commission member and president and CEO of Northfield Savings Bank, praised the creation this year of a retirement program for employees without access to a plan at work, almost half of those in the workforce.
In addition to retirement, another goal of financial literacy programs is to help elderly Vermonters learn more about finances so they are not victims of fraud. Mike Pieciak, the commissioner of the Department of Financial Regulation, told of a Vermonter he helped who had been hoodwinked into buying an annuity he didn’t understand.
DFR and the treasurer’s office will lead the Financial Literacy Working Group, which will make recommendations on changes and improvements. The two entities signed an agreement “to review state policies and propose new strategies so more Vermonters achieve financial security.”
