Last week I found an interesting quiz in the Wall Street Journal titled "Measuring Your Retirement IQ." I have included a few of the questions from this quiz for you in this blog post. Can you answer these questions correctly?
1. Among households age 50-plus, how much money is held in a typical retirement account?
a. $90,000
b. $140,000
c. $190,000
d. $240,000
ANSWER: A. The median balance was $89,300 as of Sept 30, according to the Urban Institute. Given that a typical household age 50 to 59 with a retirement account has annual income of $95,000, those savings are "not enough to replace one year's pre-retirement income," the institute notes.
2. What percentage of surveyed workers age 45-plus said they stopped contributing to their retirement savings in the past year?
a. 10%
b. 15%
c. 20%
d. 25%
ANSWER: C. One in five workers surveyed last month said they stopped putting money into a 401(k), individual retirement account or related savings plans, according to a report published recently by AARP.
3. What percentage of the surveyed workers age 45 and older said that - based on recent changes in the economy - they have considered delaying retirement?
a. 24%
b. 34%
c. 44%
d. 54%
ANSWER: B. One-third of workers surveyed last month have considered postponing retirement, according to AARP. Women are more likely than men -40% vs. 29% to be weighing that step.
4. What percentage of surveyed workers age 45 and older think they are currently saving enough for retirement?
a. 36%
b. 46%
c. 56%
d. 66%
ANSWER: A. Only about one-third of workers think their savings plans for retirement are on track, according to the AARP. Fifty-eight percent said they aren't saving enough, and 6% said they didn't know or declined to answer.
5. Among workers age 65-plus, what percentage work full time?
a. 26%
b. 36%
c. 46%
d. 56%
ANSWER: D. From 1995 to 2007, the number of older workers on full-time schedules nearly doubled, while the number working part time rose just 19%, according to the Bureau of Labor Statistics. As a result, "full-timers now account for a majority among older workers, 56% in 2007, up from 44% in 1995."
6. The median weekly earnings of full-time workers age 65-plus in 2007 were:
a. $605
b. $705
c. $805
d. $905
ANSWER: A. That compares with median weekly earnings of $695 for all workers, according to the Bureau of Labor Statistics.
Do the answers to these 6 questions scare you?
Ponder this test until my next blog post...
Rob Minton
P.S. You can see the complete quiz in the Wall Street Journal dated Saturday, October 18th, 2008.
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