Boomers, Are You Smart Enough To Make Your Retirement Funds Last? Take This Quiz To Find Out

The last of the baby boomers — that is, the generation born between 1946 and 1964 — are rapidly approaching retirement age. If you’re a boomer, whether retired or not, you should be confident that your retirement funds will last you throughout the remainder of your golden years.

Thankfully, there are a number of ways to ensure your savings carry you throughout your retirement. Do you know what they are, though? Are you smart enough to make your retirement funds last? Work your way through this GOBankingRates retirement quiz to find out.

Also see things boomers should sell in retirement — even if they don’t want to.

The importance of retirement planning and preparation cannot be underestimated. Despite that fact, and the fact that boomers have had decades to save, many are still not ready (and may not even pass this important test). What percentage of boomers are simply planning to never retire because of this?

A) 20%

B) 35%

C) 50%

The answer is (A), or 20%. Per AARP, 20% of boomers have no plans to retire, and see themselves working well into the 2030s, or into their 70s. Why? They are, quite simply, unprepared and do not have a nest of egg of retirement savings and investments to live off.

Part of retirement is simplifying your life. That includes divesting yourself of expensive headaches — and making a profit while doing so. Which of these items should a boomer retiree consider selling to make their retirement funds last?

A) The family home.

B) The extra (or luxury) car.

C) The personal business.

D) Collectibles.

E) All of the above.

Hopefully, you selected (E) — all of the above. A joy of retirement can be de-cluttering your life, removing stressors and financial headaches while making extra money for your nest egg. A house that’s a little too large, an extra car, a stressful personal business, pricey collectibles — all of these could be sold off to extend your retirement savings and make life a little less complicated.

Let’s say you’re a boomer approaching retirement and you’ve wisely maximized your retirement accounts (401(k), Roth IRA and more). Is it wise to also invest in a health savings account, or is it a risky expense that could waste your precious savings?

A) Definitely invest in an HSA.

B) Avoid excess investing in an HSA.

If you chose (A) and are investing in an HSA, you’ve probably made a wise choice. An HSA not only allows for tax-deferred growth on your money, but when utilized with a high deductible insurance plan, withdrawals for qualified medical expenses can be made tax free.

With so many different investments and retirement accounts available to you, how much is too much? Are certain accounts and investments simply unnecessary? In the end, you should never overextend yourself and your available cash by putting your money in too many retirement accounts.

A) True: An annuity is an unnecessary complication.

B) False: An annuity can make your retirement easier.

An annuity is a worthy retirement option that provides tax-deferred growth for your investment. It is essentially a contract between yourself and an insurance company in which you exchange payments (or a lump sum) for guaranteed income payments during your retirement. An annuity can be a lifesaver for a retiree on a fixed income. Annuities allow you to either withdraw money as needed, or to annuitize the overall balance (almost like a pension), in which you receive tax-free principal and pay taxes only on the interest. It’s a safe and secure way boomers can ensure cash flow during retirement.