Pensions, Retirement and Dependency Laws quiz

What is the definition of a pension?

• A loan for retired individuals

• Regular payments made to retired individuals

• A tax benefit for workers

• A healthcare subsidy

A state pension is:

• A private retirement savings plan

• A government-provided retirement benefit

• An insurance policy for dependents

• A one-time payment upon retirement

Private pension systems are:

• Managed by the government

• Funded solely by employee taxes

• Managed by private financial institutions

• Available only in the EU

A contributory pension requires:

• No prior contributions

• Contributions to a specific system

• A fixed retirement age

• Approval from the employer

What is a non-contributory pension?

• A pension funded by personal savings

• A pension provided without prior contributions

• A pension linked to inflation

• A retirement plan for government workers

Pensionable age refers to:

• The age at which someone begins contributing to a pension

• The age when an individual qualifies to receive a pension

• The age required for early retirement

• The age at which pension contributions stop

Replacement rate is:

• The percentage of income replaced by a pension

• The inflation adjustment for pensions

• The interest rate on retirement savings

• The tax rate on pension income

In a Defined Benefit (DB) Plan, benefits are:

• Based on investment performance

• Predetermined by salary and years of service

• Flexible and based on demand

• Limited to a fixed amount annually

A Defined Contribution (DC) Plan is based on:

• Predetermined payouts

• Contributions and fund performance

• Government-mandated amounts

• Lifetime earnings

The retirement age is:

• The age when pension contributions begin

• The age at which one stops working and receives a pension

• A fixed age set by international law

• A measure of life expectancy