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Social Security benefits are based on a number of things. Which of the following is NOT one of them?

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Your financial need

Your average lifetime earnings

The amount of time you've worked

Your financial need. Financial need does not determine the benefits you get from Social Security. Your earnings and amount of time worked determine your benefits.

If you work for a for-profit company, which retirement plan might it offer?

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Social Security

401k

403b

401k. If a for-profit company offered a retirement plan, it would offer 401k plans, but not the others mentioned.

If you live longer than expected, you may face a number of different risks associated with your elder years. Which risk refers specifically to living longer than expected?

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Inflation risk

Longevity risk

Healthcare costs risk

Long-term care risk

Longevity risk. Longevity risk is the risk that you will live longer than is expected. It can lead to a lot of challenges if it is not planned for.

Over a long period, inflation reduces what a person with a fixed income can afford to buy.

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True

False

True. Financial planners suggest that you begin saving for retirement as early as possible to offset the effects of inflation.

Why should you start thinking about your retirement years while you are still young?

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Your health might be poor in your elder years.

You will need enough money to last for the rest of your life.

They could be a large portion of your life.

All of the above

All of the above. All of these are reasons why you should get an early start on planning for your retirement.

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