Retirement Corpus Building

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What is the primary source of building a retirement corpus for most individuals?

Government contributions

Savings from the individual (correct)

Income generated during retirement

Employer contributions

Which group of individuals are required to make mandatory contributions to their retirement account?

Self-employed individuals

Government employees only

Employees covered under the Employees Provident Fund Act (correct)

Unorganized sector workers

In which type of retirement scheme do benefits depend on the contributions made during the working life of the employee?

Central Civil Services Pension

Defined Contribution (DC) schemes (correct)

Public Sector Bank Pension

Defined Benefit (DB) schemes

What distinguishes Defined Benefit (DB) schemes from Defined Contribution (DC) schemes?

DB schemes provide a defined pension, while DC schemes depend on contributions made Signup and view all the answers

For individuals not covered under mandatory retirement provisions, like self-employed people, saving for retirement is:

Voluntary Signup and view all the answers

Which retirement benefit schemes provide a defined pension to those covered under them?

Central Civil Services Pension Signup and view all the answers

What type of retirement plan is described in the text?

Defined Benefit (DB) plan Signup and view all the answers

What is a key characteristic of Defined Benefit plans?

Individuals are assured of a specific pension amount Signup and view all the answers

What could lead to a Defined Benefit plan becoming 'under-funded'?

Inadequate contributions and low investment returns Signup and view all the answers

Why have Defined Contribution plans become more popular?

Greater flexibility and lower costs for employers Signup and view all the answers

What factor has contributed to the decline in Defined Benefit schemes?

Low interest rates and high annuity prices Signup and view all the answers

How do employees view Defined Contribution plans compared to Defined Benefit plans?

Unwilling to trade-off current remuneration Signup and view all the answers

Retirement Corpus Building

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Questions and Answers

What is the primary source of building a retirement corpus for most individuals?

Which group of individuals are required to make mandatory contributions to their retirement account?

In which type of retirement scheme do benefits depend on the contributions made during the working life of the employee?

What distinguishes Defined Benefit (DB) schemes from Defined Contribution (DC) schemes?

For individuals not covered under mandatory retirement provisions, like self-employed people, saving for retirement is:

Which retirement benefit schemes provide a defined pension to those covered under them?

What type of retirement plan is described in the text?

What is a key characteristic of Defined Benefit plans?

What could lead to a Defined Benefit plan becoming 'under-funded'?

Why have Defined Contribution plans become more popular?

What factor has contributed to the decline in Defined Benefit schemes?

How do employees view Defined Contribution plans compared to Defined Benefit plans?

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