Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Retirees will always need less money to live on than working people.
False. Health problems and lifestyle changes may increase a persons income needs in retirement.
2.
Over a long period, inflation reduces what a person with a fixed income can afford to buy.
True. Financial planners suggest that you begin saving for retirement as early as possible to offset the effects of inflation.
3.
Janice is 35 and wants to retire early at age 60. What is her best bet for having the money she'll need?
Her employer retirement savings plan and her savings account. If she wants to retire at 60, any plan that relies on Social Security is unwise, since she will not receive full benefits until her normal retirement age.
4.
To help save Social Security, we may have to _______.
All of the above. All of these options may be necessary.
5.
The government has done its part to help you save for retirement by _______.
Allowing you to set up tax-deferred retirement accounts. Accounts such as 401(k) plans and individual retirement accounts (IRAs) grow tax-deferred.