Which of the following is a primary benefit of considering retirement expenses early in your financial planning?

• A. It ensures that all healthcare costs will be covered by government programs.
• B. It eliminates the need for budgeting during retirement.
• C. It allows you to estimate future financial needs and save accordingly.
• D. It guarantees a higher rate of return on all investments.

Answer: (C)

Verified step by step guidance

1. Understand the importance of retirement planning: Retirement planning involves estimating future financial needs and saving accordingly to ensure financial security during retirement.
2. Evaluate the options provided in the question: Analyze each statement to determine its validity and relevance to the primary benefit of early retirement planning.
3. Option 1: 'It ensures that all healthcare costs will be covered by government programs.' This is incorrect because government programs may not cover all healthcare costs, and planning is needed to address potential gaps.
4. Option 2: 'It eliminates the need for budgeting during retirement.' This is incorrect because budgeting is still necessary during retirement to manage expenses effectively.
5. Option 3: 'It allows you to estimate future financial needs and save accordingly.' This is correct because early planning helps you project expenses and build sufficient savings to meet those needs.