Planning Beginner: Working and Living in Retirement

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Choose wisely. There is only one correct answer to each question.

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Review your answers below to learn more.

Which of the following statements are true?

Many people will be better off using retirement employment income and/or tax-deferred savings to live on, while delaying their Social Security benefits until age 70.

Because of increased taxes, it is very often to one's disadvantage to continue paid work in retirement.

While you are working, your earnings will reduce your Social Security benefit amount, both before and after you reach full retirement age.

All the above

None of the above

Many people will be better off using retirement employment income and/or tax-deferred savings to live on, while delaying their Social Security benefits until age 70. The other statements are false.

If you're planning on starting new hobbies after you retire, you may find you're greatly disappointed.

True

False

True. Hobbies are much more fulfilling to people over 65 if the activities are a continuation of their interests in earlier years; so cultivate those interests now.

Who has the best chance of getting the most from growth and compounding of one's money?

A 20-year-old

A 40-year-old

A 60-year-old

None of the above

A 20-year-old. As a rule, the younger you are when you start saving for your retirement, the more you will gain from the growth and compounding of your money.

Many people work during retirement _______.

To avoid boredom

To continue to feel productive

To stay physically and mentally active

All the above

None of the above

All the above. These are all reasons why many people continue working during their retirement years.

Many people aim to supplement their retirement income with what percentage of their preretirement income?

25%

50%

75%

100%

25%. This is because as a retiree, they have Social Security and retirement savings income to rely on as well.

What is meant by "living below your means"?

To live below your means is to deprive yourself of any luxuries so that you will have all the necessities

If you live below your means you don't try to keep up appearances after you retire

Living below your means is a way of life using discipline to make sure you don't squander money

Living below your means is a way of life using discipline to make sure you don't squander money. Living below your means is a way of life that allows you to have the things you want, but never be wasteful.