Deferred Retirement

### Does deferred retirement typically increase the monthly income upon retirement? - [ ] Yes, deferred retirement always increases monthly income. - [x] No, it typically does not increase monthly income. - [ ] It only increases income if you work until 75 or older. - [ ] Deferred retirement decreases the monthly income. > **Explanation:** Deferred retirement does not typically increase the monthly retirement income though it can affect the total savings accumulated over time due to continued work and contributions. ### Why might someone choose deferred retirement? - [x] To continue earning a steady income and keep employer benefits. - [ ] Because they have no retirement accounts. - [ ] To avoid paying taxes. - [ ] None of the above. > **Explanation:** Individuals may choose deferred retirement to continue earning a steady income and keep accessing employer-provided benefits. ### At what age does Required Minimum Distribution (RMD) typically begin? - [ ] 65 - [ ] 67 - [x] 72 - [ ] 75 > **Explanation:** Required Minimum Distribution (RMD) typically begins at age 72. ### How does deferred retirement influence Social Security benefits if claimed after the full retirement age? - [x] It can result in increased benefits. - [ ] It will result in reduced benefits. - [ ] There is no change in benefits. - [ ] It results in benefits being halted. > **Explanation:** Deferring retirement and claiming Social Security benefits after the full retirement age can result in increased benefits. ### What is a 401(k) plan? - [ ] A retirement savings account for employees offered by employers. - [x] A qualified retirement savings plan offered by an employer, allowing employees to save and invest for their own retirement. - [ ] A government bond scheme for retirees. - [ ] A mandatory savings account for all employees. > **Explanation:** A 401(k) plan is a qualified retirement savings plan offered by an employer, allowing employees to save and invest for their own retirement. ### What does FRA stand for in retirement planning? - [ ] Federal Retirement Account - [ ] Fractional Retirement Age - [x] Full Retirement Age - [ ] Fiscal Retirement Authorization > **Explanation:** FRA stands for Full Retirement Age, which is the age at which a person may first become entitled to full or unreduced retirement benefits. ### Is it mandatory for all companies to offer deferred retirement? - [ ] Yes, it is mandatory. - [ ] No, only government organizations must offer it. - [x] No, it depends on the company's policies and retirement plans. - [ ] Yes, a federal law mandates it. > **Explanation:** It is not mandatory for all companies to offer deferred retirement; it depends on the company's policies and retirement plans. ### Can deferred retirement impact health benefits? - [x] Yes, continuing to work can allow for the maintenance of employer-provided health benefits. - [ ] No, health benefits are not impacted by retirement decisions. - [ ] Only if the individual has a 401(k) plan - [ ] Only government employees can maintain health benefits. > **Explanation:** Yes, continuing to work can allow individuals to maintain employer-provided health benefits, hence impacting the decision for deferred retirement. ### What is the typical retirement age? - [ ] 60 - [x] 65 or 70 - [ ] 75 - [ ] 80 > **Explanation:** The typical retirement age is generally considered to be 65 or 70. ### Can choosing deferred retirement incur any penalties? - [x] No, there are no direct penalties, although there could be other considerations such as taxes. - [ ] Yes, individuals are heavily taxed. - [ ] Yes, it incurs a penalty fee from the company. - [ ] Only for those without 401(k) plans. > **Explanation:** There are no direct penalties for choosing deferred retirement, although income taxes and required minimum distributions starting at 72 may apply.