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1.
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.
2.
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.
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.
Which of the following will you probably not need to cover during your retirement years?
Savings for the future. This is not needed because you are already retired, although it is certainly optional. You will continue to have expenses and taxes of various kinds, however.
5.
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.