Can you pass this basic retirement knowledge quiz?

Do you know your retirement ABCs? Most U.S. adults don’t, according to the results of a recent retirement fluency survey.

The five-question pop quiz from TIAA Institute, a think tank owned by financial services company TIAA, was distributed to 4,000 adults earlier this year. On average, respondents scored a lackluster 40%.

You read that correctly: The average U.S. adult can’t pass a five-question test on basic retirement knowledge. Nineteen percent of people answered zero questions correctly, slightly more than the share who answered four or more correctly.

Not surprisingly, older respondents had better test results. “Silent Generation” members, born roughly between 1928 and 1945, answered 50% of the questions correctly, on average. Gen Zers, on the other hand, scored an average of 28%.

Want to see how you measure up? Take the test below, and then check your answers at the bottom of my latest story. Don’t forget to share your results with me, or any burning questions you might have, at mcags@money.com.

— Mary Ellen Cagnassola, Money reporter

1. Which statement about Social Security is false?

A) The amount someone receives in Social Security benefits depends upon his/her earnings during the last two years of full-time employment.
B) A worker receives Social Security benefit payments if he/she becomes disabled before retiring.
C) Social Security benefit payments will continue as long as an individual is alive, no matter how long he/she lives.
D) Don’t know.

2. Susan worries about living a long life and running out of money. What is the best way for her to address that possibility?

A) Buy an annuity.
B) Buy life insurance.
C) There is nothing she can do about this.
D) Don’t know.

3. On average, Medicare and other government programs cover how much of an individual’s health care expenses in retirement?

A) Over 90%.
B) About 2/3.
C) About 1/2.
D) Don’t know.

4. Latisha plans to start saving for retirement by setting aside $2,000 this year. Her employer offers a 401(k) plan and fully matches a worker’s contributions up to $5,000 each year. Under which scenario does Latisha have the largest amount in retirement savings at year-end?

A) She contributes $2,000 to the 401(k) plan and invests the money in a mutual fund that earns a 5% return during the year.
B) She contributes $2,000 to an IRA and invests the money in a mutual fund that earns a 5% return during the year.
C) It does not matter — she will have the same amount of year-end savings either way.
D) Don’t know.

5. On average in the U.S., how long will a 65-year-old man/woman live?

A) Man age 79, woman age 82.
B) Man age 84, woman age 87.
C) Man age 89, woman age 92.
D) Don’t know.

(Answers)

Teens today have a lot on their minds, including retirement, according to a recent study by Junior Achievement and MissionSquare Retirement. More than 80% of adolescents ages 13 to 18 said they have thought about their retirement, and 78% believe they’ll be able to retire comfortably when they get there.

• 🏙️ Need some ideas on where to retire? Money recently published its annual Best Places to Live, a list of 50 U.S. cities offering vibrant local culture, affordability and robust local economies.
• 💸 Some 401(k) savers are concerned about the impact of high-cost mutual funds fees and lower-quality investment options on their balances, The New York Times reports.
• ✍️ Many retirees are forced out of their jobs sooner than planned, like communications specialist Jackie Fishman, who wrote about her early retirement for Business Insider.