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1.
A defined contribution plan provides you a lump sum of money at retirement.
True. If you like, you can use this money as retirement income that is steadily spread out.
2.
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.
3.
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.
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.
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.