n NISM Certifications
X NISM Series X
Medium

In the Income Replacement Method of calculating the income required in retirement, which of these expenses will be excluded?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Contributions to Provident Fund

    Correct answer

  2. B

    Medical Costs

  3. C

    Rental income

  4. D

    All of the above

Why this is the answer

Provident Fund contributions are work-related savings that cease after retirement, so they are excluded from the income replacement calculation.

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