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1.
Your list of expenses for retirement should leave room for taxes.
True. You want to be prepared at tax time.
2.
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.
3.
When calculating the expenses that you will have during retirement, what is the problem with expressing them in today's dollars?
Your expenses in retirement may be different than they are now. Most expenses will increase due to inflation and should therefore be adjusted for it.
4.
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).
5.
Many believe that you will need _______ of your pre-retirement income to survive in retirement.
65-75 percent. Although estimates certainly vary, this figure is commonly accepted.