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1.
Many professionals in the retirement field believe that you will need about two-thirds of your pre-retirement income to survive in retirement.
True. Estimates vary, but two-thirds is commonly accepted.
2.
When calculating the expenses you will have during retirement, you should calculate them using _______.
Inflation-adjusted dollars. Prices rise over time due to inflation; you must therefore adjust your expenses for inflation. An inflation table factor or a financial calculator can help you do that.
3.
Before you retire, you must cover your current expenses, your taxes, and savings for future needs. In retirement, however, what will you need to cover?
Only current expenses and taxes. Saving for the future is not necessary, although some people do it for extra income.
4.
Your expenses in retirement will be the same amount that they are today.
False. While you will have the same kinds of expenses, the amounts will shift.
5.
To find out how much Social Security benefits you are entitled to, you must wait until shortly before retirement to contact the Social Security Administration (SSA).
False. You can find out now by sending for the "Social Security Statement" (Form SSA-7004) from the Social Security Administration (SSA).
