FIN 310 Chapter 14 – Flashcards

The major mistake(s) people make in retirement planning is(are) a. starting too late. b. saving too little. c. investing too conservatively. d. a and b e. a, b, and c

Funds to finance social security come from a. voluntary contributions from employee, employer, and self-employed. b. compulsory contributions from employee, employer, and self-employed. c. state and federal income tax. d. compulsory contributions from government, employee, and employer. e. Congressional appropriations.

The purpose of the social security retirement program is to a. increase retirement income to 75 percent of pre-retirement income. b. pay for health care costs. c. replace defunct pension fund plans. d. provide a basic adequate income to eligible retirees. e. none of these.

Annual increases in the social security benefit check are related to the a. retiree's income. b. number of dependents. c. quality of life. d. current cost of living. e. pre-retirement cost of living.

Normal retirement age is typically defined as ____ years of age. a. 50 b. 55 c. 60 d. 65 e. 70