T F 1. Postponing one’s retirement date from age 65 to age 68 tends to both lengthen the accumulation period and shorten the liquidation period.

T F 2. When the replacement-ratio method is used to estimate the needed retirement income, normally the ratio should be greater than 100 percent.

T F 3. Social security benefits are indexed to provide at least a partial hedge against inflation.

T F 4. A pension plan that specifies that a retiree’s pension income will be equal to 60 percent of his or her average salary in the 3 years prior to retirement is a defined-contribution plan.

T F 5. In a profit-sharing plan employer contributions are discretionary.

T F 6. A money-purchase pension plan is a form of defined-benefit plan.

T F 7. Unless one qualifies to make deductible contributions, there are no tax advantages to having an IRA.

T F 8. A spousal IRA may be established even if the taxpayer’s spouse receives no compensation during the tax year.

T F 9. Medicare Part B covers 100 percent of all approved charges for covered types of medical expenses.

T F 10. In a typical reverse annuity mortgage arrangement the retired person retains the right to occupy the house for the balance of his or her life.