n NISM Certifications
X NISM Series X
Medium

Life expectancy directly influences the length of the retirement period because it determines how long an individual is expected to live after retirement, thus affecting the duration for which retirement funds must be planned and accumulated.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Period in retirement

    Correct answer

  2. B

    Remaining working years

  3. C

    Monthly expenses in retirement

  4. D

    Returns earned on the retirement corpus

Why this is the answer

An increase in life expectancy extends the expected duration of retirement, necessitating greater savings to sustain expenses over a longer period.

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