Retirement Planning Quiz

1. What is the purpose of retirement planning?
To accumulate wealth
To enjoy a comfortable retirement
Both
2. What is the earliest age at which you can start receiving Social Security retirement benefits in the United States?
65
67
62
3. What is the recommended percentage of your pre-retirement income that you should aim to replace during retirement?
25-35%
50-60%
75-85%
4. Which retirement account allows for tax-free withdrawals if certain conditions are met?
Roth IRA
401(k) plan
Traditional IRA
5. What is the term used for the period after retirement when investment returns may have a significant impact on the success of your retirement plan?
Distribution phase
Accumulation phase
Pre-retirement phase
6. What is the concept of "asset allocation" in retirement planning?
Allocating a portion of income to savings
Determining the ideal retirement age
Diversifying investments across different asset classes
7. Which of the following is a potential risk during retirement?
Career advancement risk
Inflation risk
Mortgage risk
8. At what age are individuals required to start taking minimum distributions from their traditional IRAs and 401(k) plans in the United States?
72
62
52
9. regular income payments during retirement?
Annuity
Mutual fund
Bond
10. What is the primary purpose of long-term care insurance?
To cover medical expenses during retirement
To protect against the costs of nursing home or home healthcare
To provide income during retirement
11. What is the term used for the process of gradually shifting investments from higher-risk assets to lower-risk assets as retirement approaches?
Dollar-cost averaging
Diversification
Asset allocation
12. What is the general rule of thumb regarding the percentage of your final salary that you should aim to replace with retirement income?
90-100%
70-80%
50-60%
13. What is the term used for the practice of setting aside a certain percentage of your income for retirement savings before allocating funds to other expenses?
Delayed gratification
Automatic enrollment
Pay yourself first
14. Which of the following statements about Social Security retirement benefits is true?
Benefits can be claimed as early as age 62
The benefit amount is the same for everyone
Benefits are only available to low-income individuals
15. What is the term used for the strategy of gradually reducing work hours or transitioning to part-time work before fully retiring?
Delayed retirement
Phased retirement
Early retirement