n NISM Certifications
XVII NISM Series XVII
Medium

Making a large withdrawal early in retirement increases the risk of depleting the retirement corpus prematurely, especially when compared to withdrawals made later.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Substituting income from the retirement corpus with employment income in retirement

  2. B

    A large withdrawal late in the retirement

  3. A large withdrawal early in the retirement

    Correct answer

  4. D

    A large requirement of income in the later stages of retirement

Why this is the answer

Early large withdrawals diminish the principal base and the benefits of compounding, risking depletion of funds during later retirement years.

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