Quiz/ Personal Finance

Retirement Planning Quiz

  1. What is the purpose of retirement planning?
  2. To accumulate wealth
    To enjoy a comfortable retirement
  3. What is the earliest age at which you can start receiving Social Security retirement benefits in the United States?
  4. 65
  5. What is the recommended percentage of your pre-retirement income that you should aim to replace during retirement?
  6. 25-35%
  7. Which retirement account allows for tax-free withdrawals if certain conditions are met?
  8. Roth IRA
    401(k) plan
    Traditional IRA
  9. 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?
  10. Distribution phase
    Accumulation phase
    Pre-retirement phase
  11. What is the concept of "asset allocation" in retirement planning?
  12. Allocating a portion of income to savings
    Determining the ideal retirement age
    Diversifying investments across different asset classes
  13. Which of the following is a potential risk during retirement?
  14. Career advancement risk
    Inflation risk
    Mortgage risk
  15. At what age are individuals required to start taking minimum distributions from their traditional IRAs and 401(k) plans in the United States?
  16. 72
  17. regular income payments during retirement?
  18. Annuity
    Mutual fund
  19. What is the primary purpose of long-term care insurance?
  20. To cover medical expenses during retirement
    To protect against the costs of nursing home or home healthcare
    To provide income during retirement
  21. What is the term used for the process of gradually shifting investments from higher-risk assets to lower-risk assets as retirement approaches?
  22. Dollar-cost averaging
    Asset allocation
  23. What is the general rule of thumb regarding the percentage of your final salary that you should aim to replace with retirement income?
  24. 90-100%
  25. 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?
  26. Delayed gratification
    Automatic enrollment
    Pay yourself first
  27. Which of the following statements about Social Security retirement benefits is true?
  28. 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
  29. What is the term used for the strategy of gradually reducing work hours or transitioning to part-time work before fully retiring?
  30. Delayed retirement
    Phased retirement
    Early retirement