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Retirement Income — Quiz Answers

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What form of retirement income does the government provide?

A
employer-sponsored 401(k) plans
B
personal savings accounts
C
private pensions
D
Social Security benefits
5

What is an advantage of having personal savings and investments, such as IRAs and annuities, for retirement income?

A
Your employer makes contributions to your investments.
B
You do not need to manage or monitor your investments.
C
You have a guaranteed monthly income regardless of market conditions.
D
You have flexibility in how and when you can access your funds.
8

Eluzer earns $⁢75,000 per year. He wants to retire at age 67 with 70% of his preretirement income. Eluzer uses the 4% rule. How much should he have saved by retirement?

A
1 dollars comma 125 comma 000
B
1 dollars comma 312 comma 500
C
1 dollars comma 575 comma 000
D
1 dollars comma 687 comma 500
10

Which type of retirement income is typically affected by stock market conditions?

A
interest income
B
dividend income
C
supplemental income
D
lifetime income

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