5 Questions to Test Retirement Knowledge
READY FOR THE FUTURE?
See How You Score on These 5 Key Retirement Questions
How confident do you feel about retirement planning? And I'm not talking about what you want in retirement. I mean the core concepts of retirement planning. Because retirement isn’t just about envisioning your ideal future. It's about understanding the key elements that will help you get there.
While most of us have a general sense of what we want in retirement, it’s easy to overlook the foundational concepts of retirement planning. I’m going to share 5 multiple-choice questions about retirement planning. Do you feel you could you answer all 5 correctly?
Believe it or not, on average, US adults correctly answered only 2 out of the 5 questions I’ll share below.1 But this doesn’t have to be the case for you. Improving your retirement literacy can increase your confidence in reaching your goals.1 So, how fluent are you on the ins and outs of retirement?
Find out in the next 3-5 minutes by completing the brief quiz below!
HOW FLUENT ARE YOU IN RETIREMENT PLANNING?
Take the Quiz to Find Out – Answers Are at the Bottom
Question # 1:
Social Security
WHICH STATEMENT ABOUT SOCIAL SECURITY IS FALSE?
A. The amount someone receives in Social Security benefits depends upon his/her earnings during the last two years of full-time employment.
B. A worker receives Social Security benefit payments if he/she becomes disabled before retiring.
C. Social Security benefit payments will continue as long as an individual is alive, no matter how long he/she lives.
D. Don’t know.
Question # 2:
Retirement Savings Strategies
SUSAN WORRIES ABOUT LIVING A LONG LIFE AND RUNNING OUT OF MONEY. WHAT IS THE BEST WAY FOR HER TO ADDRESS THAT POSSIBILITY?
A. Buy an annuity.
B. Buy life insurance.
C. There is nothing she can do about this.
D. Don’t know.
Question # 3:
Medicare
ON AVERAGE, MEDICARE AND OTHER GOVERNMENT PROGRAMS COVER HOW MUCH OF AN INDIVIDUAL’S HEALTH CARE EXPENSES IN RETIREMENT?
A. Over 90%.
B. About 2/3.
C. About 1/2.
D. Don’t know.
Question # 4:
Retirement Savings
LATISHA PLANS TO START SAVING FOR RETIREMENT BY SETTING ASIDE $2,000 THIS YEAR. HER EMPLOYER OFFERS A 401(k) PLAN AND FULLY MATCHES A WORKER’S CONTRIBUTIONS UP TO $5,000 EACH YEAR. UNDER WHICH SCENARIO DOES LATISHA HAVE THE LARGEST AMOUNT IN RETIREMENT SAVINGS AT YEAR-END?
A. She contributes $2,000 to the 401(k) plan and invests the money in a mutual fund that earns a 5% return during the year.
B. She contributes $2,000 to an IRA (individual retirement account) and invests the money in a mutual fund that earns a 5% return during the year.
C. It does not matter—she will have the same amount of year-end savings either way.
D. Don’t know.
Question # 5:
Longevity in Retirement
ON AVERAGE IN THE U.S., HOW LONG WILL A 65-YEAR-OLD MAN/WOMAN LIVE?
A. Man age 79/Woman age 82.
B. Man age 84/Woman age 87.
C. Man age 89/Woman age 92.
D. Don’t know.
SCORING & RESULTS
Congratulations! You’ve completed the quiz.
Question 1 Answer: A
42% of quiz takers got this right
Question 2 Answer: A
53% of quiz takers got this right
Question 3 Answer: B
30% of quiz takers got this right
Question 4 Answer: A
44% of quiz takers got this right
Question 5 Answer: B
32% of quiz takers got this right
Now you can calculate your final score based on the number of correct responses you had.
0 Correct = 0%
19% of quiz takers got 0 answers correct.
1 Correct = 20%
20% of quiz takers got 1 answers correct.
2 Correct = 40%
23% of quiz takers got 2 answers correct.
3 Correct = 60%
21% of quiz takers got 3 answers correct.
4 Correct = 80%
13% of quiz takers got 4 answers correct.
5 Correct = 100%
4% of quiz takers got 5 answers correct.
A SOLID RETIREMENT PLAN STARTS WITH KNOWING THE RIGHT QUESTIONS TO ASK—AND HOW TO ANSWER THEM.
What did you score on the retirement quiz?
Were you surprised by what you know… or what you may have missed? Whatever your score, remember that improving your retirement fluency is within your reach. Understanding the core concepts of retirement planning helps you uncover gaps, identify opportunities, and build confidence in your financial future.1
Of course, other factors also play a role in retirement fluency, like having the opportunity to save through an employment-based retirement savings plan.1 But having the ability to make sound retirement-related decisions is just as impactful.1 While there’s no quick fix, the good news is that with ongoing learning and proactive planning, you can take control of your retirement journey.
And you don’t have to do it alone.
We're here to help you navigate each step of the way toward the future you envision.
Sources
1. Tiaa, 2024 [URL: https://www.tiaa.org/content/dam/tiaa/institute/pdf/executive-summary/2024-04/tiaa_institute_gflec_retirement_fluency_pfin_summary_2024.pdf]
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
