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1.
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.
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.
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.
4.
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.
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.