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1.
A list of retirement expenses will include many of the same things you spend money on right now.
True. Some expenses, such as medical bills, may be higher in your later years.
2.
A defined contribution plan provides you _______ at retirement.
A lump sum of money. You are given a lump sum of money, but you can convert it into an annuity if you wish.
3.
By examining your present mode of living and making adjustments, you can determine your retirement needs.
True. By looking at your present lifestyle, you can determine what you will need to live on in retirement.
4.
An inflation table factor tells you _______.
How much you will need to earn in the future to stay even with inflation. You can find this figure in special tables.
5.
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.
