What do you know about retirement planning?

Sorry, the correct answer is when you begin working. Thanks to the power of compounding, the sooner you start investing for retirement, the more time you will give your money to grow. A 25-year-old who saves $4,000 a year for 10 years and leaves the balance to grow at 8% annually could save $650,000 by age 65.

Sorry, the correct answer is up to 85% of your current income. The actual amount you will need will vary based on a wide variety of factors, such as the costs of necessities like food and housing, the lifestyle you choose to lead in retirement, health care costs, etc., but 85% is a good rule of thumb for many people.

Sorry, the correct answer is all of the above. A good retirement savings strategy is to try to pay off all major debts before you retire. If you don’t have a mortgage or car payments, your monthly expenses in retirement will be much lower than they are now.

Sorry, the correct answer is 64%. According to the Employee Benefits Research Institute, in 2009 about 64% of workers had saved less than $50,000 for retirement.

Sorry, the correct answer is 62. However, the longer you wait to claim Social Security benefits, the higher those benefits will be. For example, a person who is eligible to receive a $1,000 monthly benefit at age 66 could receive a $1,320 monthly benefit instead by delaying Social Security until age 70. On the other hand, taking Social Security earlier reduces the expected annual benefit. If the same hypothetical person starts claiming Social Security at age 62, the monthly benefit would fall to $750.

Sorry, the correct answer is Individual Retirement Account. An IRA can be a tax-advantaged way to save for retirement. IRAs can be opened with investment products such as mutual funds, stocks or other investments, or with FDIC-insured bank products such as CDs and money market savings accounts.

Sorry, the correct answer is in retirement, qualified withdrawals from a Roth IRA are federally tax-free. IRAs come in two basic types. With the Traditional IRA, contributions may be tax-deductible and pre-tax contributions and any earnings are taxed upon withdrawal. With the Roth IRA, there's no tax deduction on contributions, but your withdrawals may be tax-free in retirement. People with employer-sponsored 401(k) plans may also be eligible to contribute to a Traditional or Roth IRA depending on their income. Spouses with no income may be eligible to set up a Traditional or Roth IRA too, provided the working spouse has earned income greater than or equal to the couple’s total IRA contributions.

Sorry, the correct answer is all of the above. 401(k)s are defined contribution plans that allow you to reduce your taxes since your contributions are not included in your taxable income. Many employers match a portion of their employees' contributions, allowing savings to grow even faster. Also, if you leave your job you can generally move your 401(k) to an IRA to help maintain its tax-deferred status and potentially increase your investment options.

Sorry, the correct answer is it depends on many factors, including your age and risk tolerance. Keeping a mix of investments allows you to balance risk and potential reward. Stocks may provide the opportunity for inflation-beating gains over the long-term, while bonds typically generate lower returns than stocks, but can make your portfolio less volatile. One allocation guide suggested by some advisors is to keep an allocation of stocks and stock mutual funds at 100 minus your age. For example, a 40-year-old should consider a 60% stock allocation.

Sorry, the correct answer is 50. If you didn't save as much when you were younger and need to kick-start your retirement savings, you have the chance to make higher annual retirement contributions beginning at age 50. For example, for a 50-year-old the 2010 IRA contribution limit rises to $6,000 and the annual 401(k)  contribution limit rises to $22,000.