Planning Beginner: Working and Living in Retirement

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When you start saving for retirement early, you can ride out the various risks in the market better than you could if you started late.

True

False

True. A long time horizon ultimately smooths out the effects of risk.

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.

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.

Withdrawing a certain percentage of money from your portfolio during retirement _______.

Is a sure way to make your money last

Is subject to various risks

Automatically overcomes risk

Is subject to various risks. The volatility of the markets, inflation, and how your portfolio is structured can all add risks that could endanger your ability to make fixed withdrawals.

What is perhaps the most important consideration for a rewarding life after retirement?

Working part time is the key to a rewarding retirement because it provides much needed extra income, as well as keeping the mind sharp

For an interesting and fulfilling retirement, stay busy with many and varied activities

To be interesting and interested in life, you should travel, take courses, and enjoy the retirement you worked hard to enjoy

For an interesting and fulfilling retirement, stay busy with many and varied activities. Start planning now with a list of specific activities that you can build upon.

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.