HOW SMART ARE YOU?
Are you ready for the retirement challenge? Find out if you are as smart as you think you are
BEGINNER
Q1. Which of the following is a consequence of inflation? a) It increases the value of money in the future b) It reduces the purchasing power of money
Q2. Life expectancy directly affects which aspect of the retirement goal? a) Years in retirement b) Monthly expenses in retirement
Q3. Contributions to EPF are mandatory for all employees a) Yes b) No
Q4. Which of these is a non-financial concern in retirement? a) Finding interests to occupy time b) Living on a tight budget
Q5. What is the most important factor to save for retirement? a) Absence of social security b) Choice of retirement products
Q6. Which of these expenses are likely to be higher in retirement? a) Housing b) Transportation c) Personal needs d) Health-related expenses
INTERMEDIATE
Q1. The NPS is? a) New Pension System b) National Pension Scheme c) National Pension System
Q2. Retirement benefit in a Defined Contribution plan depends on? a) The corpus accumulated in the scheme b) The last drawn pay of the employee
Q3. PFRDA means? a) Provident Fund Regulatory and Development Authority of India b) Pension Fund Regulatory and Development Authority of India
Q4. Annuity is fully? a) Tax free b) Taxed at slab rates
Q5. What is the average retirement age in India? a) 58 years b) 60 years c) 65 years d) 70 years
Q6. Which of the following is true about retirement goal? a) It has to be built out of own funds b) It requires a large corpus c) It is long-term in nature d) All the above
EXPERT
Q1. The NPS is? a) Defined benefit retirement plan b) Defined contribution retirement plan
Q2. The NPS Tier 2 account is for tax savings? a) Yes b) No
Q3. Can you claim tax deduction beyond the Rs 1.5 lakh cap under 80C on NPS? a) Yes b) No
Q4. The tax-free amount you receive from private sector as gratuity is? a) Rs 20 lakh b) Rs 15 lakh c) There is no limit
Q5. NPS Auto Choice offers? a) Active asset allocation b) No asset allocation
Q6. The maximum equity allocation in the NPS fund is? a) 95% b) 50% c) 75% d) 80%