Mercer Advisors

How Strong Is Your Retirement Plan? Take Our Retirement Readiness Quiz 

Bryan Strike, MS, MTx, CFA, CFP®, CPA, PFS, CIPM, RICP®

Director, Financial Planning

Summary

Planning for retirement is one of your most important financial steps. How prepared are you? Take our retirement quiz and find out.  

 

Person talking about retirement quizes

Planning for retirement is one of your most important financial steps. Yet, according to a recent survey, just two in 10 workers are very confident they’ll have enough money to live comfortably in retirement.1  

How prepared are you? Take our quiz to test your retirement knowledge.  

Retirement Readiness Quiz  

  1. Which of the following strategies is least effective in improving retirement security?
    1. Increasing savings by 3% in the last five years before retirement
    2. Delaying Social Security benefits by two years
    3. Continuing to work for an additional two years  
  2. On average, how many more years can a 65-year-old man expect to live?2
    1. 10 years
    2. 15 years
    3. 20 years
    4. 25 years  
  3. Which investment type is historically the best protection against inflation? 
    1. A diversified stock portfolio
    2. A diversified bond portfolio
    3. Certificates of deposit (CDs)  
  4. According to the Social Security Administration, if no changes are made, by 2034 they will only be able to pay approximately what percentage of promised benefits?3 
    1. 0%
    2. 25%
    3. 50%
    4. 75%  
  5. What percentage of the population is likely to need long-term care at some point?4
    1. 10%
    2. 25%
    3. 50%
    4. 70%  
  6. Historically, which type of investment has produced the highest long-term returns?5 
    1. Small-company stock funds
    2. Large-company stock funds
    3. Dividend-paying stock funds
    4. High-yield bond funds  
  7. At what age must individuals born in the 1950s begin taking required minimum distributions (RMDs) from traditional IRAs? 
    1. 55
    2. 59½
    3. 65
    4. 70½
    5. 73  
  8. Which type of long-term bond typically offers the highest yield? 
    1. AAA-rated corporate bonds  
    2. B-rated corporate bonds  
    3. U.S. Treasury bonds    
  9. True or False: Investing in a single company’s stock is generally safer than investing in a stock mutual fund. 
    1. True
    2. False 
  10. If a mutual fund invests entirely in long-term bonds and interest rates rise significantly, what is likely to happen to the value of the fund? 
    1. Increase significantly
    2. Decrease significantly
    3. Remain unchanged
    4. Could go up or down depending on the type of bond  

Answer Key & Explanations  

  1. (a) While saving more is always beneficial, last-minute increases in savings typically have less impact than delaying Social Security or working longer. 
  2. (c) Half of American men who have reached the age of 65 will have a life expectancy of around 20 more years, with some living beyond that. 
  3. (a) A diversified stock portfolio has historically provided the best protection against inflation. 
  4. (d) Without reforms, Social Security is projected to be able to pay only 75% of promised benefits starting in 2034. 
  5. (d) About 70% of people will need some form of long-term care during their lifetime. 
  6. (a) Small-company stock funds tend to generate the highest returns over time but also come with higher risk. 
  7. (e) RMDs generally begin at age 73. 
  8. (b) Lower-rated bonds (like B-rated corporate bonds) typically offer higher yields to compensate for increased risk. 
  9. False. Investing in a diversified mutual fund reduces the risk of losing money compared to investing in a single stock. 
  10. (b) When interest rates rise, bond values tend to decrease significantly. 

How Did You Score?  

  • 8-10 correct: You’re well-prepared! Keep refining your strategy. 
  • 5-7 correct: You’re on the right track but may need to adjust some areas. 
  • 0-4 correct: It’s time to focus on your retirement planning! 

No matter your score, it’s never too late to take steps toward a more secure retirement. Reviewing your savings strategy, investment choices, and long-term care plans can make a big difference. If you’re not a client and want to know more, let’s talk.  

1  2024 Retirement Confidence Survey, Employee Benefit Research Institute and Greenwald Research. Accessed 30 January 2025.  

2  Finke, PhD, CFP®, Michael. “Planning for a Longer (and More Expensive) Retirement.” The American College of Financial Services, 24 May 2024.  

3  Will Social Security Be There for Me? Social Security Administration, Oct. 2023.  

4 Madglin, Lindsay. “Long-term Care Statistics 2024.” SingleCare, 24 January 2024. 

5 Norland, Erik. “Russell 2000 Versus S&P 500: Compare Performance.” CME Group, 26 October 2020. 

Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. 

All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors. 

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy or product made reference to directly or indirectly, will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. Historical performance results for investment indexes and/or categories, generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. 

This document may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to market conditions. Readers are cautioned not to place undue reliance on these forward-looking statements. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Mercer Advisors’ control. 

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. 

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