The 14-question interactive tool was designed to help those planning for retirement determine how much they know about retirement income, and to offer them a better understanding of how to make their money last for the duration of their lives.
The quiz was presented in 2011 to a test panel of 1,213 preretired Americans aged 56 to 65, and the majority answered only one-third of the questions correctly, indicating misperception and misunderstanding in a number of core areas, such as life expectancy, inflation, retirement income/savings, long-term care and Social Security.
Only 45% of respondents knew that experts believe retirees will need 80% to 90% of their preretirement income to maintain their current standard of living. Nearly three in ten (29%) incorrectly believe that retirees should limit the percent they withdraw from their savings each year to 7% to 10%, while in reality experts advise limiting withdrawals to 4% to 6% annually. In addition, just 17% knew that delaying the collection of Social Security by three years would add 24% to the amount they receive.The quiz can be taken online here. A printable version is here.