What is the primary purpose of retirement planning?

"To ensure a comfortable lifestyle after retirement" "To accumulate wealth for future generations" "To avoid financial dependence on others" "To mitigate the impact of inflation"

Which of the following is NOT a key aspect of retirement planning?

"Estimating future expenses" "Investing to grow savings" "Managing assets and risk" "Predicting stock market fluctuations"

Why is starting retirement planning early considered beneficial?

"It allows for more time to recover from financial losses" "It maximizes the benefits of compound interest" "It guarantees a higher rate of return on investments" "It eliminates the need for emergency funds"

How can individuals combat inflation in their retirement planning?

"By relying solely on fixed-income investments" "By withdrawing all savings before retirement" "By choosing investments with increasing sum assured" "By ignoring inflation's impact on purchasing power"

What is the significance of setting up automatic transfers for retirement savings?

"It simplifies tax calculations" "It prevents impulsive spending of savings" "It guarantees a fixed rate of return" "It eliminates the need for budgeting"

Why is reducing debt considered crucial before retirement?

"To increase credit score" "To qualify for higher pensions" "To avoid financial burdens in post-earning years" "To maximize inheritance for beneficiaries"

What factor should individuals consider when estimating their retirement expenses?

"Current income level" "Past investment performance" "Potential lifestyle changes" "Inherited assets"

How does the concept of 'psychological myopia' affect retirement planning?

"It encourages impulsive investment decisions" "It prioritizes present needs over future planning" "It leads to overestimation of retirement funds" "It promotes excessive risk-taking in investments"

Why is considering life expectancy crucial in retirement planning?

"To determine the optimal retirement age" "To estimate the total amount of savings required" "To predict future healthcare costs accurately" "To choose the most profitable investment options"

How can individuals mitigate the impact of rising healthcare costs during retirement?

"By relying solely on government-funded healthcare" "By investing in healthcare-specific mutual funds" "By factoring healthcare expenses into retirement planning" "By minimizing healthcare needs through lifestyle changes"