Why Do People on Fixed Pensions Get Poorer Every Year

question 2

Multiple Choice

Why do people on fixed pensions get poorer every year?

• A) because payments remain stable, but inflation reduces their real value
• B) because payments are fixed on life expectancy, and the longer the retiree lives, the less the pension pays out
• C) because payments depend on the number of wage earners paying in, which is decreasing, and the number drawing pensions, which is increasing, as society ages
• D) because payments do not fluctuate with OAS payments

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces that activate behavior.

Incentive Theories

Theories in psychology focused on understanding how external rewards motivate behaviors and drive human actions.

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.