HOW STUFF WORKS
QUIZZES

FOLLOW US
Planning for a Perfect Retirement
by Staff
No matter what your financial situation, it's important to start saving for retirement if you haven't already. On top of savings, retirement means your Social Security and Medicare benefits kick in, and you'll most likely want to take full advantage of those. Think you're hip to everything there is to know about retirement? Take this quiz to test your retirement savings know-how.

When's the best time to start saving for retirement?

  • when you get your first promotion
  • at age 32
  • right now

What's the best way to save for retirement?

  • Contribute money from each paycheck to a 401k or IRA.
  • Set aside money in a savings account.
  • both of the above

True or false: You can collect Social Security once you hit retirement age, whether you're working or not.

  • TRUE
  • FALSE

What's the best time to take investment risks with your retirement funds?

  • when you're very close to retirement age to give your savings a boost
  • never
  • when you're young

When's a good time to sign up for Medicare?

  • at age 65
  • when you're no longer employed full time and receiving medical insurance from your employer
  • both of the above

True or false: If you haven't started saving for retirement when you're close to retirement age, it's too late.

  • TRUE
  • FALSE

What's a good reason to put off saving for retirement?

  • I don't make enough money.
  • I have too much credit card debt.
  • neither of the above

True or false: If your company offers 401k matching, you should contribute only the maximum amount that they will match.

  • TRUE
  • FALSE