Planning for a Perfect Retirement

Staff

4 Min Quiz

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About This Quiz

No matter what your financial situation, it's important to start saving for retirement if you haven't already. On top of savings, retirement means your Social Security and Medicare benefits kick in, and you'll most likely want to take full advantage of those. Think you're hip to everything there is to know about retirement? Take this quiz to test your retirement savings know-how.

When's the best time to start saving for retirement?

Get started right away! The earlier you start saving, the easier it'll be to save up for a comfortable retirement.

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What's the best way to save for retirement?

By combining riskier, market-based investments like 401k or IRA plans with cash savings, you'll be in a much safer place financially in the long term.

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True or false: You can collect Social Security once you hit retirement age, whether you're working or not.

If you're retiring late, you can still start collecting your Social Security benefits. You might consider investing this extra income or using it to pay down debt so that you'll be in better financial shape when you're ready to retire.

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What's the best time to take investment risks with your retirement funds?

It's better to take risks when you're young, while your finances still have time to bounce back in case those risky investments don't pan out.

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When's a good time to sign up for Medicare?

While there is an exception for folks who receive medical benefits from a full-time employer, you'll face higher premiums and possibly spend some time uninsured if you don't sign up for Medicare when you turn 65.

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True or false: If you haven't started saving for retirement when you're close to retirement age, it's too late.

While getting a late start on retirement saving might mean a late retirement or having to work part time, it's never too late to meet with an advisor, come up with a plan and start working toward retirement.

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What's a good reason to put off saving for retirement?

Unless you're living below the poverty line, chances are you can find a way to prioritize saving for retirement by cutting back on other expenses. Even if you're saving just a small amount per paycheck, you'll be in better shape down the road than if you saved nothing at all.

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True or false: If your company offers 401k matching, you should contribute only the maximum amount that they will match.

To save more aggressively, you may want to contribute more than the maximum matching amount, if you can afford it.

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