Question 1

Unless it is indexed, an annuity provides no protection from inflation.

Accepted Answer

A) True 
 B)False

Question 2

At age 65, the life expectancy of a woman is 21 years.

Accepted Answer

A) True 
 B)False

Question 3

Which statement is correct regarding retirement living expenses?

Accepted Answer

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.F) C) and D)
G) A) and B)

Question 4

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

Accepted Answer

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) F) A) and B)
G) C) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

How many years can you expect to spend in retirement?

Accepted Answer

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 yearsF) A) and E)
G) A) and B)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

When I retire, my pension benefits will increase to keep pace with inflation.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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) F) A) and B)
G) C) and D)

Question 11

What are important steps in retirement planning?

Accepted Answer

The first step is to analyze your assets...

Question 12

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:

Accepted Answer

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

Question 13

In an RRSP, contributions are tax-deductible and earnings accumulate tax free.

Accepted Answer

A) True 
 B)False

Question 14

Why is it important to review your assets and liabilities before your retirement?

Accepted Answer

Reviewing your assets and liab...

Question 15

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

Accepted Answer

A)   50
B)   60
C)   70
D)   80
E)   90F) B) and E)
G) None of the above

Question 16

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

Accepted Answer

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.F) B) and E)
G) B) and D)

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

Exam 14: Retirement Planning

What are important steps in retirement planning?

Correct AnswerverifiedThe first step is to analyze your assets...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Unless it is indexed, an annuity provides no protection from inflation.

Correct AnswerverifiedShow Answer

Which statement is correct regarding retirement living expenses?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How many years can you expect to spend in retirement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When I retire, my pension benefits will increase to keep pace with inflation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

At age 65, the life expectancy of a woman is 21 years.

Correct AnswerverifiedShow Answer

Why is it important to review your assets and liabilities before your retirement?

Correct AnswerverifiedReviewing your assets and liab...View AnswerShow Answer

In an RRSP, contributions are tax-deductible and earnings accumulate tax free.

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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The first step is to analyze your assets...
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Over the last two decades, companies have switched their retirement plans from to _.

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Reviewing your assets and liab...
View Answer

Correct Answer
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