Deck 14: Retirement Planning

Question 1

How many years can you expect to spend in retirement?

A) 1 to 5 years
B) 6 to 10 years
C) 10 to 12 years
D) 12 to 16 years
E) up to 16 to 20 years

Answer 1

up to 16 to 20 years

Question 2

Which one of the following expenditures for retirees is likely to decrease?

A) food and medical care
B) federal income taxes
C) expenses for leisure activities
D) medical expenses
E) insurance

Answer 2

federal income taxes

Question 3

A(n) ____________ is appealing because it allows people to stay in their homes as they grow older and frail.

A) accessory apartment
B) caretaker arrangement
C) commercial rental
D) universal design home
E) congregate housing

Answer 3

universal design home

Question 4

When you are nearing retirement, it is a good idea to:

A) increase the face value of your life insurance.
B) increase your property insurance coverage.
C) keep your life insurance intact.
D) decrease the face value of your life insurance.
E) swap your old life insurance policy with a new one.

Question 5

Some retirement planning experts suggest that you start retirement planning while you are:

A) in school.
B) in college.
C) in graduate school.
D) middle-aged.
E) still employed.

Question 6

According to most financial planners, you will need about __________ percent of your current pre-tax income to maintain your standard of living in retirement.

A) 50
B) 60
C) 70
D) 80
E) 90

Question 7

When a lender uses your house as collateral to buy an annuity for you from a life insurance company, it is called:

A) an obverse annuity mortgage.
B) mortgage life insurance.
C) a reverse mortgage annuity.
D) a fixed annuity with level premium.
E) whole life insurance.

Question 8

Which one of the following is a true statement about retirement planning?

A) I should update my retirement plan periodically.
B) My pension benefits will increase to keep pace with inflation.
C) Saving just a little bit won't help.
D) My employer's health insurance plan will cover my medical expenses.
E) Medicare will cover my medical expenses.

Question 9

Many people make the move into retirement housing without:

A) considering seasonal factors.
B) experiencing many obstacles.
C) a spouse or companion.
D) doing enough research.
E) the proper accommodations.

Question 10

Your first step in retirement planning is to:

A) estimate your spending needs.
B) analyze your current assets and liabilities.
C) adjust your spending needs for inflation.
D) evaluate your planned retirement income.
E) determine if you'll have to work during retirement.

Question 11

Which type of housing is designed to allow people to stay in their homes as they grow older?

A) Accessory apartment
B) ECHO unit
C) Rooming house
D) universal design
E) professional companionship arrangement

Question 12

Which one(s) of the following is(are) tips from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

A) Contact the local Chamber of Commerce to get an economic profile.
B) Contact the provincial tax department to find out provincial, sales, and inheritance taxes.
C) Call a local accountant to find out which taxes are rising.
D) Rent for a while instead of buying immediately.
E) Contact the local Chamber of Commerce to get an economic profile, contact the provincial tax department to find out provincial, sales, and inheritance taxes, call a local accountant to find out which taxes are rising, and rent for a while instead of buying immediately are correct.

Question 13

The people who are in the best position to save are:

A) middle-aged.
B) young adults in their 20s.
C) people in their 30s.
D) teenagers.
E) elderly.

Question 14

Which one(s) of the following is (are) misconceptions about retirement planning?

A) My expenses will drop when I retire.
B) My retirement will last only 15 years.
C) I can depend on government benefits.
D) I can depend on my company pension.
E) My expenses will drop when I retire, my retirement will last only 15 years, I can depend on government benefits, and my company pension are misconceptions.

Question 15

Which statement is correct regarding retirement living expenses?

A) It is impossible to estimate your spending needs.
B) The exact amount of money you'll need is impossible to predict.
C) You'll use a smaller amount of money for food, housing, and medical care.
D) Your spending patterns will probably not change.
E) The exact amount of money you'll need can be accurately predicted.

Question 16

Which statement is correct about retirement planning of young professionals?

A) They don't want to retire with plenty of money.
B) They would rather save money now for retirement than spend it.
C) They are not worried about having enough money to retire comfortably.
D) Young people are in the best position to save.
E) Saving money does not come naturally to many young people.

Question 17

You can get a reverse mortgage annuity if:

A) you are at least 55 years old.
B) you are five years from retirement.
C) your mortgage is largely or completely paid off.
D) you are recently retired.
E) you need a loan.

Question 18

You can determine your net worth by

A) subtracting your assets from your liabilities.
B) subtracting the value of your home from the mortgage balance.
C) adding your liabilities and assets.
D) subtracting your liabilities from your assets.
E) subtracting your expenses from your income.

Question 19

Which housing alternative is preferred by most persons who are approaching retirement?

A) house sharing
B) ECHO unit
C) accessory apartment
D) present home
E) boardinghouse/rooming house

Question 20

Which one of the following expenditures for retirees is likely to increase?

A) insurance
B) federal income taxes
C) clothing expenses
D) work-related expenses
E) provincial income taxes

Question 21

What is the most popular personal retirement plan?

A) Deferred Profit Sharing Plan
B) Registered Pension Plan
C) Registered Retirement Savings Plan
D) Canada Pension Plan
E) New Seniors Benefit

Question 22

An annuity in which you receive an income for the rest of your life, but no payments are made to anyone after your death is called:

A) fixed-term annuity.
B) life annuity.
C) installment refund annuity.
D) Registered Retirement Income Fund.
E) money purchase pension plan

Question 23

An employee who is seeking the greatest security in her pension income would choose which of the following?

A) Deferred Profit Sharing Plan (DPSP)
B) Defined Contribution Pension Plan (DCPP)
C) Group Registered Retirement Savings Plan (Group RRS))
D) Defined Benefit Pension Plan (DBPP)
E) Dividend Reinvestment Plan (DRIP)

Question 24

Which of the following is not a public pension plan in Canada?

A) CPP
B) QPP
C) OAS
D) RRSP
E) ETA

Question 25

The first step in stretching your retirement income is to make sure that you are

A) contributing to the CPP.
B) covered by an employer pension plan.
C) contributing to a RRIF.
D) saving funds in a RRSP.
E) receiving all of the income to which you are entitled.

Question 26

Which of the following requires mandatory contributions from workers earning in excess of $3,500 a year?

A) Quebec Pension Plan (QPP)
B) Old Age Security (OAS)
C) Defined Benefit Pension Plan (DBPP)
D) Registered Retirement Savings Plan (RRSP)
E) Dividend Reinvestment Plan (DRIP)

Question 27

Possible sources of income for many retirees include

A) government benefits.
B) public pension plans.
C) employer pension plans.
D) personal retirement plans and annuities.
E) government benefits, public pension plans, employer pension plans, personal retirement plans and annuities are possible sources of income.

Question 28

At age 65, what is the average life expectancy of a woman?

A) 9 years
B) 12 years
C) 15 years
D) 21 years
E) 30 years

Question 29

At age 65, what is the average life expectancy of a man?

A) 4 years
B) 7 years
C) 9 years
D) 12 years
E) 18 years

Question 30

Which employer pension plan has an individual account for each employee?

A) undefined-contribution plan
B) defined-contribution plan
C) defined-benefit plan
D) undefined-benefit plan
E) surplus-employee plan

Question 31

You can expect to spend about ________ years in retirement

A) 5-10
B) 11-15
C) 16-20
D) 21-25
E) 26 or more

Question 32

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

A) defined-contribution plan
B) undefined-contribution plan
C) undefined-benefit plan
D) defined-benefit plan
E) surplus-employee plan

Question 33

Over the last two decades, companies have switched their retirement plans from ______________ to _______________.

A) RPPs; GRRSPs
B) DPSPs; defined-benefits
C) defined benefits; defined contributions
D) defined contributions; defined benefits
E) DPSPs; defined contributions

Question 34

Which of these statements is correct about the Canada Pension Plan (CPP)?

A) The CPP dates back to 1996.
B) There are three types of CPP benefits.
C) CPP contribution is based on your age.
D) The federal government matches the CPP contributions of self-employed individuals.
E) If you can begin receiving your CPP benefits at the age of 50.

Question 35

If a retiree wishes a predictable income in retirement, at the age of 71 she should transfer her RRSP into a(n) _________________.

A) RRIF
B) Annuity
C) Mutual fund
D) Cash
E) GIC

Question 36

Be certain you don't let your ____________ birthday roll by without a comprehensive retirement plan.

A) 25^th
B) 35^th
C) 45^th
D) 55^th
E) 65^th

Question 37

One of the following is not an advantage of the Canada Pension Plan retirement income:

A) earned income partially offsets benefits.
B) forced savings.
C) portable from job to job.
D) cost shared with employer.
E) survivorship rights.

Question 38

Which statement is correct regarding retirement living expenses?

A) It is impossible to estimate your spending needs.
B) Your spending patterns will probably change.
C) You'll use a smaller amount of money for food, housing, and medical care.
D) Your spending patterns will probably not change.
E) The exact amount of money you'll need can be accurately predicted.

Question 39

Which of the following statements is false?

A) Payments for a life annuity can continue until death.
B) Transfers between annuity companies are tax-free.
C) Annuities are legitimate tax shelters.
D) An annuity has no investment limit.
E) Annuities provide opportunities for retirement income to grow.

Question 40

To stretch your income during retirement, you could

A) skip leisure activities.
B) cut your food expenditures.
C) cancel your life and property insurance.
D) use your skills and time instead of your money.
E) not travel.

Question 41

A CMHC program that helps low-income homeowners, or landlords who own units occupied by low-income tenants, pay for repairs to bring their properties up to minimum health and safety standards and helps owners modify their homes to make them accessible to those who are disabled is called __________________

A) Canada Pension Plan
B) Home Adaptations for Seniors' Independence Program
C) Old Age Security
D) Emergency Repair Program
E) Residential Rehabilitation Assistance Program

Question 42

Some experts suggest starting estate planning while you are still in school.

Question 43

Which of these statements is correct about the Canada Pension Plan (CPP)?

A) The CPP dates back to 1996.
B) CPP contribution is based on your age.
C) You can begin receiving your CPP benefits at the age of 50.
D) The federal government matches the CPP contributions of self-employed individuals.
E) You can begin receiving your CPP benefits at the age of 60.

Question 44

Your retirement will last only about 15 years.

Question 45

Which one of the following expenditures for retirees is likely to decrease?

A) food and medical care
B) clothing expenses
C) expenses for leisure activities
D) medical expenses
E) insurance

Question 46

A housing alternative for seniors that provides independent living residences for retirees or semi-retirees in a community of healthy seniors is called __________________

A) life lease housing
B) the Home Adaptations for Seniors' Independence Program
C) a retirement home
D) an adult lifestyle/retirement community
E) the Residential Rehabilitation Assistance Program

Question 47

A CMHC program that helps low-income homeowners in rural or remote areas make emergency repairs to keep their homes safe is called __________________

A) Canada Pension Plan
B) Home Adaptations for Seniors' Independence Program
C) Old Age Security
D) Emergency Repair Program
E) Residential Rehabilitation Assistance Program

Question 48

Be certain you don't let your 45^th birthday roll by without a comprehensive retirement plan.

Question 49

The ground rules for retirement planning are fast changing.

Question 50

Which of these statements is correct about the Canada Pension Plan (CPP)?

A) You must start receiving CPP at age 65.
B) CPP contribution is based on your age.
C) You can begin receiving your CPP benefits at the age of 59.
D) The federal government matches the CPP contributions of self-employed individuals.
E) CPP benefits increase by 0.5 percent for each month later than the month of your 65^th birthday should you start your benefits later.

Question 51

A housing alternative run by private businesses that provide seniors various combinations of accommodation, support services, and personal care is called __________________

A) a retirement home
B) the Home Adaptations for Seniors' Independence Program
C) life lease housing
D) an adult lifestyle/retirement communities
E) the Residential Rehabilitation Assistance Program

Question 52

During your retirement, your employer's health insurance plan and provincial health insurance will cover your medical expenses.

Question 53

Which one of the following expenditures for retirees is likely to increase?

A) clothing expenses
B) federal income taxes
C) provincial income taxes
D) work-related expenses
E) leisure activity expenses

Question 54

A housing alternative for seniors in which a tenant is given the right to live in a dwelling unit in return for an upfront payment and monthly maintenance fees is called __________________

A) a retirement home
B) the Home Adaptations for Seniors' Independence Program
C) life lease housing
D) an adult lifestyle/retirement communities
E) the Residential Rehabilitation Assistance Program

Question 55

It is vital to engage in basic retirement planning activities through your working years.

Question 56

A CMHC program that helps homeowners pay for minor modifications, such as adding handrails and grab bars is called __________________

A) Canada Pension Plan
B) Home Adaptations for Seniors' Independence Program
C) Old Age Security
D) Emergency Repair Program
E) Residential Rehabilitation Assistance Program

Question 57

Saving just a little bit today for your retirement won't help.

Question 58

Which of these statements is correct about the Canada Pension Plan (CPP)?

A) The CPP dates back to 1996.
B) CPP contribution is based on your age.
C) CPP benefits decrease by 0.5 percent for each month earlier than the month of your 65^th birthday should you start your benefits before age 65.
D) The federal government matches the CPP contributions of self-employed individuals.
E) You can begin receiving your CPP benefits at the age of 59.

Question 59

Which one of the following expenditures for retirees is likely to increase?

A) clothing expenses
B) federal income taxes
C) medical expenses
D) work-related expenses
E) provincial income taxes

Question 60

Which one of the following expenditures for retirees is likely to decrease?

A) food and medical care
B) expenses for leisure activities
C) work related expenses
D) medical expenses
E) insurance

Question 61

The exact amount of money you will need in retirement can be predicted accurately.

Question 62

Your expenses for leisure activities will probably increase during retirement.

Question 63

The contribution you are required to make to the CPP is fixed.

Question 64

The Canada Pension Plan (CPP) includes disability, retirement, and survivor benefits.

Question 65

Staying in their present home is the alternative preferred by most of the persons who are approaching retirement.

Question 66

At age 65, the life expectancy of a man is 7 years.

Question 67

At age 65, the life expectancy of a woman is 13 years.

Question 68

The exact amount of money you will need in retirement cannot be predicted accurately.

Question 69

Only saving now and curtailing current spending can ensure comfortable retirement later.

Question 70

Your net worth is equal to your assets minus liabilities.

Question 71

Your first step in retirement planning is to analyze your current assets and liabilities.

Question 72

In reviewing your assets for retirement, you should increase premium payments by increasing the face value of your life insurance.

Question 73

At age 65, the life expectancy of a man is 14 years.

Question 74

You can expect to spend about 16 to 20 years in retirement.

Question 75

Federal programs are the major source of public retirement pensions.

Question 76

The housing needs of people do not change much as they grow older.

Question 77

In a reverse annuity mortgage, a lender uses your house as collateral to buy an annuity for you from a life insurance company.

Question 78

Your spending patterns during retirement will probably not change.

Question 79

You can qualify for reduced CPP retirement benefits at age 60.

Question 80

Your current assets include everything you own that has value.