What percentage of surveyed retirees and workers said their retirement is, or will be, better than their parents' retirement?

Retirees Workers

ANSWERS: C (current retirees) and A (current workers). Almost three-quarters of current retirees say their life in retirement is better than that of their parents, according to a recent survey by AXA Equitable Life Insurance Co. But about 40% of current workers don't expect retirement to match up to their parents' experiences.

Among both segments, "less than half [48% of current retirees and 47% of current workers] believe retirement will be better for their children," the survey notes.

What percentage of workers report that they and/or their spouse have tried to calculate how much money they will need to have saved by the time they retire?

ANSWER: B. Less than half of surveyed worker say they have tried to determine how much money they will need for a comfortable retirement, according to the Employee Benefit Research Institute. Doing the math, the institute notes, "is particularly effective at changing worker behavior." Forty-four percent who calculated a goal changed their retirement planning; of those, almost six in 10 (59%) started saving or investing more.

When asked to identify the method they use to determine the savings needed for retirement, the largest percentage of surveyed workers said they:

ANSWER: D. Almost half (43%) of surveyed workers -- instead of doing a retirement-needs calculation -- guess at how big a nest egg they will need, according to the Employee Benefit Research Institute.

When asked how much money they think they will need for retirement, the largest percentage of surveyed workers said:

ANSWER: A. Twenty-five percent of surveyed workers estimate that they will need less than $250,000 for retirement, according to the Employee Benefit Research Institute. The next largest figures: 23% cited a goal of between $500,000 and $999,999, and 16% said between $250,000 and $499,999.

"Overall, the amounts that workers think they need to accumulate for a comfortable retirement appear to be rather low," the institute said.

Workers age 55 and older are more likely to think they will need $500,000 or less; workers under age 35 are more apt to think they will need $1 million or more.

HEALTH

What age group represented the largest percentage of buyers of long-term-care insurance in 2007?

ANSWER: C. Fifty percent of buyers of long-term care insurance (individual policies, as opposed to group coverage) were age 55 to 64, according to the American Association for Long-Term Care Insurance. That said, one-third of buyers were under age 55, indicating that sales of the product are beginning to skew younger.

In all, about 400,000 individuals purchased long-term care insurance in 2007, either on an individual basis or through their employer.

How many physicians are certified in geriatric medicine in the U.S.?

ANSWER: B. About 7,100 doctors specialize in geriatric care, according to a recent report by the National Academy of Sciences. That translates into only one physician for every 5,200 older Americans.

What percentage of surveyed baby boomers gave the correct answer when asked: At what age does Medicare eligibility begin?

ANSWER: B. Only about one-third of surveyed baby boomers knew that eligibility for Medicare begins at age 65, according to a study by the National Association of Insurance Commissioners.

The most popular sports activity among adults age 55 to 64 is:

ANSWER: C. Exercise walking, with 11.5 million participants, is far and away the most popular exercise among the 55-to-64 age group, as well as the 65-plus crowd, according to the National Sporting Goods Association. The second most popular activity for both age groups: exercising with equipment (about 5.5 million participants in each age group).

MONEY

The median value of baby boomers' inheritances to date is:

ANSWER: A. The transfer of wealth from the World War II generation "has been less impressive than many predicted, and it likely will not grow much further," according to a report by Tiburon Strategic Advisors. The reasons: "immediate spending [needs], longer time in retirement, health-care costs [and] taxes."

What percentage of baby boomers who have received an inheritance have received more than $100,000?

ANSWER: A. According to Tiburon Strategic Advisors, only two out of every 100 baby boomers who have received an inheritance received an amount totaling six figures or better.

What percentage of workers in surveyed 401(k) plans are saving the maximum amount allowed?

ANSWER: A. Fewer than one in 10 workers save enough to come within $500 of their plan maximum or the pretax maximum as defined by the Internal Revenue Service ($15,500 in 2008, or $20,500 for those 50 and older), according to a survey published last month by Financial Engines, an investment advisory firm in Palo Alto, Calif. One-third of 401(k) participants aren't saving enough to qualify for the full matching contribution from their employer -- in effect, giving up "free" money.

Women age 65 and older have a median income that is:

ANSWER: B. The median income for women in retirement is only about half that of men's. The reasons: "lower income during their working years, more time out of the work force, and decreased opportunities to earn or vest in a pension during their working years," according to Cindy Hounsell, executive director of the Women's Institute for a Secure Retirement.

In 2006, women accounted for 57% of the population age 65-plus, but represented 70% of the older population living in poverty, according to the Census Bureau.

What percentage of affluent baby boomers (with more than $100,000 in investable assets) say they have provided some type of financial support to their adult children -- and to their parents?

Have helped adult children;  Have helped parents

ANSWERS: D (adult children) and B (parents). More than nine in 10 boomers have helped their adult children with college loans, buying a car, mortgage payments and related needs, according to a report by Ameriprise Financial. And almost one-third of boomers have helped their parents with medical bills, utilities and groceries, among other needs.

Just 6% of boomers said this financial assistance comes from their retirement savings; 50% said they use "day-to-day spending money," and 41% said they use "regular savings" accounts. That said, many baby boomers "don't see how tapping day-to-day spending money or savings can slow the rate at which they save for retirement," the research notes.

What percentage of affluent baby boomers -- and what percentage of boomers' parents -- say they talk about money and finances with their families on a regular basis?

Baby boomers;             Boomers' parents

ANSWERS: B (baby boomers) and A (boomers' parents). Less than half of baby boomers -- and only about one-quarter of boomers' parents -- say they regularly discuss financial matters with family members, according to a report by Ameriprise Financial. A "culture of silence" involving personal finances, according to the research, means that "conversations about money across generations aren't happening as often as they should."

What percentage of surveyed participants in 401(k) plans said they had no knowledge of the fees and expenses associated with their plans?

ANSWER: C. More than three-quarters of 401(k) participants, according to research by AARP, are unaware of the costs associated with their retirement savings. "Even though they maintain that fees are an important consideration in their investment decisions," the research notes, "most 401(k) plan participants say they lack basic knowledge concerning them."

More than half of participants (54%), the survey showed, "do not feel knowledgeable about the impact that fees can have on their retirement savings."

LIFESTYLES

What percentage of adults age 65 and older voted in the 2004 presidential election and 2006 congressional elections?

2004                     2006

ANSWERS: B (in 2004) and B (2006). This age group had the highest rate of voter participation in both years, according to the Census Bureau. The age group with the lowest participation rate: 18- to 20-year-olds (41% in 2004 and 17% in 2006).

Which state has the largest percentage of residents age 65 and older?

ANSWER: C. Florida (17%) has the highest percentage of residents age 65-plus, according to the Census Bureau, followed by West Virginia (15.5%) and Pennsylvania (15.2%). States with the lowest percentage are Alaska (7%), Utah (8.8%) and Georgia (9.9%).

How many people age 66 and older are enrolled in adult education courses?

ANSWER: D. About 7.3 million people age 66-plus are taking adult education classes, according to the Department of Education. That amounts to about 8% of all such students.

What percentage of surveyed grandparents said they had ever opened a savings or investment account on behalf of a grandchild?

ANSWER: A. Only about one-quarter of grandparents "give for long-term goals or take advantage of investment accounts to improve the potential for their money's growth," according to AARP. What's more, "grandparents who have [opened savings or investment accounts] were most likely to invest in a 'low-return' vehicle like a bank savings account." Few grandparents, AARP added, are aware of investment options that are particularly appropriate for grandchildren, such as a Coverdell Savings Account (21%) or the Uniform Gifts to Minors Act/Uniform Transfers to Minors Act (7%).

When asked how much money they spend on their grandchildren each year, surveyed grandparents said approximately:

ANSWER: B. According to AARP, the typical grandparent has about four grandchildren, which means that the average spent is about $150 per grandchild. Given that grandparents in the U.S. have a median income of about $46,000, spending on grandchildren amounts to about 1.3% of grandparents' annual income.

SOCIAL SECURITY

The average monthly Social Security benefit for retired workers is approximately:

ANSWERS: D (men) and A (women). As of December 2006, the average benefit for retired men was $1,178 a month, compared with $905 for retired women, according to the Social Security Administration. The primary reasons for the gap: "women's lower earnings and higher incidences of time out of the work force," according to Cindy Hounsell, executive director of the Women's Institute for a Secure Retirement.

True or false: Social Security benefits can be subject to income taxes.

ANSWER: True. According to the Social Security Administration: "You will have to pay federal taxes on your benefits if you file a federal tax return as an 'individual' and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000."

Fewer than one-third of current beneficiaries pay taxes on their benefits.

You can find a good discussion of benefits and possible taxes in Social Security Publication No. 951, "Social Security and Equivalent Railroad Retirement Benefits." (www.irs.gov/publications/p915/index.html)

Which of the following statements are correct? (Multiple responses allowed.) Starting in 2041, Social Security...

ANSWERS: B and C. According to the 2008 Social Security Trustees Report, published in March, the Social Security trust fund will be exhausted in 2041, at which point the agency will be able to pay only about 78% of promised benefits.

That said, the program would not go "bankrupt" or "broke." Presumably, the federal government will still be collecting taxes in 2041, and a portion of that revenue will be funneled to Social Security -- which will continue to issue checks to beneficiaries. But as things stand now, those checks will be worth about 22% less than the projected benefits called for under current rules.