Exit this survey Wespath Financial Literacy Quiz Questions Wespath is celebrating Financial Literacy Month with an opportunity for you to test your knowledge by taking our 5-minute quiz. The first five quiz takers who answer all 13 questions correctly (or the top 5 scores) will win Wespath swag. The quiz closes April 30. Question Title * 1. If you are currently 62 years old, and you defer taking Social Security benefits until age 70, approximately how much will your starting monthly benefit increase? 8% 20% 50% 70% Question Title * 2. When must you begin taking Required Minimum Distributions from your retirement plan account balances if you are currently 69 years old? April 1 following the year of attaining age 70½, retirement or termination, whichever is later April 1 following the year of attaining age 72, retirement or termination, whichever is later Question Title * 3. If you earn $75,000, your plan sponsor offers a 4% match and you only contribute 1%, how much do you miss in contributions every year? $750 $1,250 $2,250 $3,162 Question Title * 4. Assuming a 7% rate of return, will your account balance be higher if you:(Hint: wespath.eynavigate.com—go to Learning Center>Other resources>Calculators>Don’t Delay Your Savings.) Contribute $200 per month FOR 10 YEARS in a retirement account from age 25-35 and leave it invested until age 67 or Contribute $200 per month FOR 30 YEARS in a retirement account from age 35 to 67. Question Title * 5. Approximately how much will the typical married couple retiring at age 65 spend on out-of-pocket costs for health care throughout retirement (in today’s dollars)? $50,000 $150,000 $300,000 $500,000 Question Title * 6. If you have a health plan with a health savings account (HSA), what is taxable? Contributions to the plan Withdrawals for healthcare expenses Withdrawals in retirement for non-healthcare expenses Earnings and interest Question Title * 7. Which type of retirement contributions reduce the taxes you pay while you’re working? Roth contributions Before-tax contributions Question Title * 8. What is the maximum income a single filer can earn to be eligible for the Saver’s Credit for retirement contributions? $22,500 $32,500 $48,750 $65,000 Question Title * 9. How much could using investing “help” from a managed account service or financial planner impact your investment returns? Zero 1% 3% 4% Question Title * 10. How much do financial experts recommend you save in your emergency fund? As much as you can 6-12 months of your living expenses 3-6 months of your salary 3-6 months of your living expenses Question Title * 11. If you make only the minimum monthly payments on your $1,000 credit card debt and you’re paying an interest rate of 18%, how much interest will you pay in the 71 months it takes to pay it off? $236 $363 $474 $800 Question Title * 12. How much life insurance do experts recommend you purchase if your annual income is $75,000 and you have two children? $75,000 $450,000 $950,000 $1.5 million Question Title * 13. When you die, if you have a will but have elected different beneficiaries for your retirement plan balances than are named in the will, who will receive your retirement plan account balances? The individual(s) named in my will. The individual(s) named as beneficiaries for my plans. Answer questions 14 and 15 if you would like to be considered for the Wespath swag. Otherwise, click “Next” to see the answers and your score. Question Title * 14. Name (Optional): Question Title * 15. E-Mail Address (Optional): Sources: Social Security Administration, Internal Revenue Service, Employee Benefit Research Institute report “Savings Medicare Beneficiaries Need for Health Expenses in 2019,” Financial Engines report “Help in Defined Contribution Plans,” EY Navigate Next
