Course Catalog > Financial Planning > Courses
Financial Planning Courses: Retirement

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Inflation risk, which is the risk that rising prices will erode your money's purchasing power, is a challenge for retired people because _______.
Choose wisely. There is only one correct answer.
They usually live on a fixed income. Fixed incomes don't change, so when prices rise, that affects the purchasing power of retired people's money.
2.
Social Security benefits are based on financial need.
Choose wisely. There is only one correct answer.
False. Anyone who pays Social Security taxes can collect Social Security benefits if they have enough credits.
3.
Why would a 60-year-old feel more urgency about planning for retirement than a 20-year-old would?
Choose wisely. There is only one correct answer.
A 60-year-old has less time to build up a nest egg. This is what creates the sense of urgency.
4.
Many retirement plans are tax-deferred. What does tax-deferred mean?
Choose wisely. There is only one correct answer.
The earnings that build up in them are not taxed until you start making withdrawals. This enables your retirement plan to grow more every year.
5.
Retirees will always need less money to live on than working people.
Choose wisely. There is only one correct answer.
False. Health problems and lifestyle changes may increase a person's income needs in retirement.