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The Retirement Quiz: Are You Saving Enough?

Many Americans weren’t saving enough for retirement before the financial meltdown of 2008. Now, with millions of people having lost large chunks of their retirement savings, the question remains: “Am I saving enough for retirement?”

All of these eggs lead make up your retirement savings, but are you ensuring each egg is large enough?

All of these eggs lead make up your retirement savings, but are you ensuring each egg is large enough?

Iowa State Bank is here to help with a retirement quiz that will hopefully help you identify any weaknesses in your savings strategy. Answers can be found after the questions, but no peeking!

  1. What percentage of your gross salary should you be saving (including employer contributions)? A. 5%   B. 10%   C. 15%   D. 20%
  2. If you’re 50 or younger, what is the maximum amount you can contribute to your 401(k) or other employer-based retirement plan in 2013? A. $7,500   B. $12,500   C. $14,500   D. $17,500
  3. What’s the maximum amount allowed for “catch-up” contributions for those 50 and over and their 401(k)s in 2013? A. $10,000   B. $12,000   C. $23,000   D. $30,000
  4. Your employer offers both a traditional 401(k) and a Roth 401(k). Can you contribute to both? A. Yes   B. No
  5. You’re aiming to retire at age 65. How much should your savings equal? A. 2 times your annual salary   B. 5 times your annual salary   C. 10 times your annual salary   D. 20 times your annual salary
  6. You’re within ten years of retirement and your nest egg isn’t sufficient. You should: A. Review your asset allocation to be sure it’s still appropriate   B. Take advantage of catch-up contributions   C. Consider working a few years longer   D. All of the above
  7. If you delay your Social Security benefits until after normal retirement age, how much of an increase will your benefits get each year until age 70? A. 5%   B. 6%   C. 7%   D. 8%
  8. True or False: you should wait until you retire to move your investments to a more secure allocation. False
  9. A 60-year old couple has a 50 percent chance that one of them will live until age: A. 71   B. 81   C. 91   D. 101
  10. To cover out-of-pocket medical costs through a 20-year retirement (not including long-term care), a 65-year-old couple would need: A. $40,000   B. $140,000   C. $240,000   D. $340,000

Check your answers below. How did you do? If you found you didn’t know the answers to many of the questions, don’t be discouraged; you’re in the majority. But, now you know what you need to in order to finance a great retirement. If you need help building your nest egg, Iowa State Bank will be glad to help. Just get in touch with us today to get started!

 

Answers:

  1. C.
  2. D
  3. C
  4. A
  5. C
  6. D
  7. D
  8. False
  9. C
  10. C

 

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