n NISM Certifications
X NISM Series X
Medium

Which income assessment method is used to estimate retirement needs by determining the income amount required to replace pre-retirement earnings?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Protection

  2. B

    Assessment

  3. Replacement

    Correct answer

  4. D

    Estimation

Why this is the answer

The income replacement method evaluates the proportion of pre-retirement income needed during retirement, focusing on maintaining standard of living through income replacement ratios.

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