Question

Financial educators often recommend that individuals should:

a. Plan to use government benefits as an emergency source of income.
b. Never accept government benefits.
c. Both plan to use government benefits as an important source of income prior to retirement and plan to use government benefits as an emergency source of income are correct.
d. Plan to use government benefits as an important source of income prior to retirement.

Answer 1

Answer: D

Explanation: it is advisable to use government benefits as an important source of income prior to retirement. Since income will no longer flow like before during the retirement period, government benefit and other allowance remain as the source of income for especially in a situation where there is no other private source of income.