When it comes to making vital financial decisions, a large chunk of US citizens - almost one quarter - are in difficulty because they have lost or forgotten essential paperwork, according to a poll by the Consumer Reports National Research Center.

The report found that 16 per cent had lost money or incurred a charge because of the poor organization of their paperwork. The survey also revealed that 40 per cent of US citizens think they can find a document at a moment's notice, and 49 per cent can do so with little looking.

The report said it was based on a representative sample of the US population, which implies that some of the respondents fall within the high net worth bracket catered to by wealth managers.

"Good record keeping is essential and makes regular events like tax time or unexpected emergencies like the passing of a loved one go smoother. If you're disorganized about your paperwork, you can lose a significant amount of money on late fees and interest charges," said Mandy Walker, sr. project editor, Consumer Reports Money Advisor.

More than 50 per cent of the people surveyed said they put documents through a shredder, 26 per cent tear them up, 15 per cent claim to burn them, and 5 per cent admit to doing nothing before they trash them.