Getting the basics right - Retirement Quiz

 

  • QUESTION 1

    What is one of the key benefits of starting to save early?

     

    Correct!
    Incorrect! Compound interest is one of the greatest benefits of starting to save early. See "How to play retirement catch-up" for more.

     

  • QUESTION 2

    Traditional advice assumed retirees would need to replace 75% of their income to retire comfortably. What replacement ratio is starting to replace this?

     

    Correct!
    Incorrect! Many advisors now say you need to replace 90% of your income comfortably. See "How to play retirement catch-up" for more.

  • QUESTION 3

    Which of the below options should you not follow if you want to boost your retirement savings:

     

    Correct!
    Incorrect! Cashing out your retirement savings will deplete the amount of money you have available at retirement. See "How to play retirement catch-up" for more.

  • QUESTION 4

    Which of the below is a savings vehicle used specifically for retirement:

     

    Correct!
    Incorrect! Many advisers now say you need to replace 90% of your income comfortably. See "How to play retirement catch-up" for more.

  • QUESTION 5

    Which of the below statements is correct:

     

    Correct!
    Incorrect! Lump sums paid out at retirement via pension funds, provident funds and retirement annuities are taxed. See "Retirement products: What you need to know" for more.

  • QUESTION 6

    "With Retirement Annuities you can change your contribution amounts over time." Is this statement true or false?

     

    Correct!
    Incorrect! Retirement Annuities allow you to change your contribution amount over time. See "Retirement products: What you need to know" for more.

  • QUESTION 7

    At retirement, how much of your Retirement Annuity can you take out as cash?

     

    Correct!
    Incorrect! At retirement you can take out one third of your Retirement Annuity as cash. See "Retirement products: What you need to know" for more.

  • QUESTION 8

    How is a pension different from a Retirement Annuity? (Choose one.)

     

    Correct!
    Incorrect! A pension is a workplace-based retirement plan while any qualifying individual can take up a retirement annuity. See "Retirement products: What you need to know" for more.

  • QUESTION 9

    If you are an investor in your twenties does traditional wisdom say that you should have:

     

    Correct!
    Incorrect! The younger you are, the longer your investment time horizon, which is why traditional wisdom says you can have higher exposure to equities. See "Life changes - and so should your retirement planning" for more.

  • QUESTION 10

    What word is commonly used to describe "the increasing cost of living"?

     

    Correct!
    Incorrect! "Inflation" is the increased cost of living. See "Don't let these retirement stumbling blocks trip you up" for more.

  • QUESTION 11

    If inflation is 6%, what rate do your investments need to grow at so they don't lose value:

     

    Correct!
    Incorrect! Your investments need to grow at more than 6% if your money is to keep its value. See "Don't let these retirement stumbling blocks trip you up" for more.

  • QUESTION 12

    What strategy can investors follow to ensure that they don't have all their investment eggs in one basket?

     

    Correct!
    Incorrect! Your investments need to grow by at least 6% if your money is to keep its value. See "Don't let these retirement stumbling blocks trip you up" for more.

Thanks for playing!

 

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