401(k) $24,500 (catch-up $8,000 at 50+; $11,250 at 60–63); IRA $7,500 (+$1,100 at 50+). RMDs begin at 73 (75 in 2033). Social Security: full retirement age 67 (born 1960+); claiming at 62 cuts the benefit about 30%; delaying to 70 adds about 8% a year (to about 124%); 2027 COLA 3.6%; average benefit about $2,071 a month; trustee projections of 83% payable in 2034 and 78% (retirement fund) in late 2032 without changes. Costs and savings: Fidelity estimates $185,500 for a single 65-year-old’s health costs ($371,000 for a couple); NIRS median retirement savings $955 for all workers and $40,000 among savers; Vanguard average 401(k) $167,970 vs median $44,115; average total savings rate 12.1%.

Table of Contents

• Grab a Pencil
• How the Quiz Works
• The Quiz: Ten Questions
• Answer Key
• Answers and Explanations
• Score Yourself
• The Bigger Picture: How Americans Are Really Doing
• Five Habits of Retirement-Savvy People
• Your 30-Day Action Plan
• Conclusion
• Frequently Asked Questions

Quiz Q1-2: 2026 retirement contribution limits ($)

The reality check: how much Americans actually have saved for retirement ($)

Savings ($) by NIRS (Feb 2026); Vanguard How America Saves 2026 via a secondary summary; averages exceed medians

Quiz Q4-6: Social Security benefit by claiming age (% of the age-67 benefit)

% of full-retirement-age monthly benefit by SSA: FRA 67 for those born 1960+; 30% reduction at 62; about 8% a year to age 70. On a $2,071 benefit: about $1,450, $2,071, $2,568

Grab a Pencil

Retirement has a funny way of seeming simple and impossible at the same time. Simple, because the basic idea is to save money now and spend it later. Impossible, because the rules have limits, ages, penalties and acronyms that change just when you finally memorize them. So let us have a bit of fun with it. Below is a ten-question quiz on the basics, followed by the answers, plain-English explanations and a score.

There is no grade that matters. The point is to find the gaps in your knowledge while they are still cheap to fix. Someone who scores three out of ten at 30 and then learns the rest is in far better shape than someone who scores ten out of ten and does nothing. Take it honestly, write your answers down and resist peeking at the key.

How the Quiz Works

There are ten multiple-choice questions, each worth one point. They cover contribution limits for 2026, Roth accounts, Social Security claiming rules, the 2027 cost-of-living adjustment, required withdrawals, health care costs and the future of Social Security. All the numbers come from 2026 sources, listed at the end. Write your letter for each question on a piece of paper, then check the answer key.

Tip: Cover the answer key and the explanations until you finish. Guessing is allowed. Often the guess you almost talked yourself out of is the right one.

The Quiz: Ten Questions

Question 1. What is the 2026 employee contribution limit for a 401(k)?

A) $22,500
B) $24,500
C) $23,500
D) $30,500

Question 2. What is the 2026 IRA contribution limit for someone under 50?

A) $7,500
B) $7,000
C) $6,500
D) $8,600

Question 3. Which statement about a Roth IRA is true?

A) Contributions are tax-deductible
B) The original owner must take required minimum distributions
C) Qualified withdrawals in retirement are generally tax-free
D) You can contribute any amount if you have earned income

Question 4. What is the Social Security full retirement age for someone born in 1960 or later?

A) 65
B) 67
C) 66
D) 70

Question 5. If you claim Social Security at 62 instead of at full retirement age, your monthly benefit is permanently reduced by about:

A) 30%
B) 10%
C) 20%
D) 40%

Question 6. For each year you delay claiming past full retirement age, up to 70, your benefit rises by about:

A) 2%
B) 8%
C) 4%
D) 12%
Question 7. What cost-of-living increase did the Social Security Administration announce for 2027 benefits?
A) 3.6%
B) 2.8%
C) 3.2%
D) 4.1%

Question 8. At what age do required minimum distributions (RMDs) from traditional retirement accounts currently begin?

A) 65
B) 73
C) 70½
D) 72

Question 9. Fidelity’s 2026 estimate of what a single 65-year-old retiree needs for health care costs in retirement (not counting long-term care) is closest to:

A) $135,500
B) $85,500
C) $285,500
D) $185,500

Question 10. Under the 2026 Social Security Trustees Report, if Congress does nothing, roughly what share of scheduled benefits would be payable once the combined trust funds are depleted in 2034?

A) 50%
B) 83%
C) 67%
D) 100%

Answer Key

No peeking until you have answered all ten. Here are the correct letters, then the explanations.

Answers and Explanations

Question 1: B

$24,500. The limit rose from $23,500 in 2025. People 50 and older can add an $8,000 catch-up, and those aged 60 to 63 can add $11,250 instead, per the IRS limits reported by CPA Practice Advisor. If you contribute enough to get your full employer match, you are already collecting the closest thing to free money in personal finance.

Question 2: A

$7,500, up from $7,000 in 2025, plus a $1,100 catch-up for people 50 and older for a total of $8,600. The limit applies across all your IRAs combined, and you need earned income at least equal to the contribution.

Question 3: C

Qualified Roth withdrawals are generally tax-free, because you contribute after-tax money. Contributions are not deductible (A is wrong), and the original owner of a Roth IRA is not required to take RMDs (B is wrong). Direct contributions phase out at higher incomes, $153,000 to $168,000 for single filers in 2026, so D is wrong.

Question 4: B

67. The Social Security Administration says full retirement age is now 67 for people born in 1960 and later, meaning you get 100% of your calculated monthly benefit at 67.

Question 5: A

About 30%. Claiming at 62 permanently reduces your monthly retirement benefit by 30% compared with waiting until 67, according to the Social Security Administration. You collect for more years, but each check is smaller for life.

Question 6: B

About 8% per year. Delayed retirement credits add roughly 8% for each year you wait beyond full retirement age, up to age 70. Three years of waiting from 67 means about 24% more, or 124% of your full benefit.

Question 7: A

3.6%. The 2027 cost-of-living adjustment was announced on October 14, 2026, and adds about $75 a month to the average benefit of roughly $2,071, by my arithmetic. It follows inflation of 3.7% in September.

Question 8: B

73. SECURE 2.0 raised the starting age from 72 to 73, and it will rise to 75 in 2033. Roth IRAs have no RMDs for the original owner, and since 2024 Roth 401(k)s do not either, which is another reason many people like Roth accounts.

Question 9: D

About $185,500 for a single 65-year-old retiring in 2026, according to Fidelity, with about $371,000 for a couple, up 7.5%. This covers premiums, deductibles and out-of-pocket costs for Medicare, and it excludes long-term care.

Question 10: B

About 83%. The 2026 Trustees Report projects the combined trust funds could be depleted in 2034, when incoming revenue would cover about 83% of scheduled benefits. The retirement-only fund (OASI) could run short in late 2032, with about 78% payable.
The numbers: Social Security timing: claiming at 62 pays about 70% of the full-retirement-age benefit; waiting until 70 pays about 124%. On the average benefit of about $2,071, that is roughly $1,450 versus $2,568 a month, about $13,400 a year apart (author’s illustration).

Score Yourself

Whatever your score, notice which questions you missed. If you missed the contribution limits, you may be under-saving without knowing it. If you missed the Social Security questions, you may be about to make a claiming decision worth tens of thousands of dollars. If you missed the health care question, your budget may have a hole in it. Each type of miss points to a different next step.

The Bigger Picture: How Americans Are Really Doing

The quiz is about knowledge, but knowledge only matters if it turns into savings. The honest picture is sobering. The National Institute on Retirement Security reported in February 2026 that the median retirement savings was just $955 across all workers and $40,000 among those with a retirement account. Vanguard’s 2026 data show an average 401(k) balance of $167,970 but a median of about $44,115, according to a secondary summary, and an average total savings rate of 12.1%, including employer contributions.

The gap between average and median tells the story: a minority of high savers pull the average up, while the typical saver has far less. Meanwhile, inflation was 3.7% in September, and health care alone is expected to cost a single 65-year-old about $185,500 in retirement, according to Fidelity. And the Trustees project that without legislative action, Social Security could pay only about 83% of scheduled benefits from 2034. None of this is a reason to despair. It is a reason to learn the rules and save a little more.



NIRS: median retirement savings $955 (all workers) and $40,000 (workers with accounts). Vanguard: average 401(k) $167,970 vs median about $44,115; savings rate 12.1%. Fidelity: $185,500 in health costs for a single 65-year-old. Trustees: about 83% of benefits payable in 2034 without changes.

Five Habits of Retirement-Savvy People

The savviest savers are not necessarily the smartest. They tend to share a handful of habits. First, they capture the full employer match, because it is an instant return on every dollar. Second, they raise their savings rate steadily: Vanguard recommends 12% to 15% of income, including the employer share. Third, they automate, since automatic enrollment lifts plan participation to 94% from 64%, according to Vanguard.

Fourth, they plan their Social Security claiming age instead of defaulting to 62, using the Social Security Administration’s tools and thinking about health, spouses and other income. Fifth, they budget for health care and review everything yearly, because limits, rules and costs change every year. None of these requires a finance degree. They require a calendar reminder and a decision.

Your 30-Day Action Plan

If you are within a few years of retiring, add three more steps: ask your plan about distribution options, check when required minimum distributions begin for you and speak to a qualified adviser or tax professional about your claiming and withdrawal strategy. If you are decades away, the best single step is to raise your savings rate by one point and automate it.

Conclusion

So, are you retirement savvy? If you knew that the 2026 401(k) limit is $24,500, that the IRA limit is $7,500, that full retirement age is 67, that claiming at 62 cuts benefits by about 30% and that RMDs start at 73, you are ahead of many people. If not, you now know, and that counts for more than any score. The key points: contribute at least enough to get your match, think carefully about when to claim Social Security, understand how Roth accounts work, budget for roughly $185,500 in health costs and stay flexible, since Congress could change Social Security.

The best retirement plan is rarely the cleverest one. It is the one you start, automate and revisit every year. Take your score, pick the topic you most want to improve and do one thing this week. And if you enjoyed the quiz, send it to someone you care about, because retirement is much easier to plan when you talk about it. This is general education, not personalized advice, and a qualified adviser can help you apply it.

Frequently Asked Questions

How many questions should I get right to be retirement savvy?

Eight or more out of ten is a strong score, but the quiz is a conversation starter, not a test of worth. Retirement rules change every year, and even experts check the numbers. What matters is knowing where to look and acting on what you learn.

Why do the contribution limits change every year?

The IRS adjusts many retirement limits for inflation. For 2026 the 401(k) limit rose to $24,500 and the IRA limit to $7,500, with catch-up amounts of $8,000 and $1,100 for people 50 and older. Check the IRS or your plan for current figures each January.

Is it better to claim Social Security at 62 or 70?

There is no universal answer. Claiming at 62 cuts your benefit permanently by about 30%, while waiting until 70 raises it by about 24% over your full-retirement-age amount. The right choice depends on your health, other income, marital status and how long you expect to live. The Social Security Administration’s tools can show your own numbers.

Will Social Security run out?

Not entirely. The 2026 Trustees Report projects that without legislative changes, the combined trust funds would be depleted in 2034, at which point about 83% of scheduled benefits could still be paid from incoming taxes. The retirement-only fund could run short in late 2032, with about 78% payable. Congress can change these outcomes.

What should I do first if I scored poorly?

Pick one step: confirm you are getting your full employer match, check your Social Security statement at ssa.gov and raise your savings rate by one percentage point. Small, concrete actions beat trying to learn everything at once. This is general education, not personal advice.