The new RICP^® Retirement Income Literacy Survey from The American College New York Life Center for Retirement Income quizzed more than 1,200 Americans aged 60-75 with over $100,000 in assets other than their home. The results, even among this relatively well-off, retirement-aged cohort, are troubling. Most retirement age Americans display a worrying lack of knowledge about what it takes to actually retire, with three in four failing to pass a quiz on how to make their nest eggs last throughout retirement. The results of the survey cast a bright light on gaps in retirement income knowledge.

Many Americans are not financially prepared for their post-working years. Only 54 percent of non-retired respondents to the FINRA Investor Education Foundation's National Financial Capability Study said they have some kind of retirement account. Bluntly stated, there is an urgent need for retirement planning. A unique set of challenges has emerged that make planning essential, including changes in employee benefits, longer life spans, and rising costs of health care. Add to these challenges another reality: more Americans are shouldering the burden of saving for retirement on their own.

If even thinking about retirement planning makes you nervous or puts you to sleep, you are not alone. Retirement planning is a broad term that refers to learning about and choosing financial strategies that will enable you to be comfortable and secure in your retirement years. It isn't just asset allocation but product allocation and constant monitoring and managing to ensure a long and prosperous retirement. A good retirement plan, executed smartly, could provide you with enough money to address your later-year living expenses.