Module 1 Quiz – 6 Questions

Defined benefit plans (pensions) helped to make the “wealthiest generation” savers in retirement. The challenge for current retirees is to convert defined contribution plans into some form of “defined outcome income plans” to match the pension plans of the past. All of the following are examples of defined contribution plans except:

Of the 3 greatest risks retirees face, which risk is the risk that most retirees should be most concerned with

Which of the following formulas (found in your workbook) would give you the highest probability of success in determining what “your retirement number” is?

Longevity risk could be considered a retiree’s greatest risk in retirement because it can be thought of as a “risk multiplier”. The longer we live, the greater the probability we will be subject to many of the challenges and risks retiree’s face. What % chance does a single male have of living to age 94, a single female have of living to age 96, and a married couple (last surviving spouse) have of living to age 98?

Sources of income in retirement were referenced as social security benefits (66%), pension benefits (10%) and “other”(24%). Name sources of income that fall in the “other” category.

Inflation is also a risk that retirees face with their income and or expenses in the future. Which of the following examples best illustrates an “inflation offset” for combating a rising inflation environment?