Case Study 1 Aim 1 Flashcards
Additional Info for Aim 1
15 points
Current Expenditure
Income / Capital needs
Emergency Fund Requirement
Plans to downsize
Declan’s pension info - spousal pension, indexation, ppf, nominations
Any guarantees on annuity
Any other deferred pensions
Investment experience
Growth rates to be assumed
Confirm family history / smoker status
Any debts / liabilites
Any inheritance due
Dependency of children
Interest on deposit account
Plans for use of other assets e.g. gifts
Recommend + Justify to ensure they have sufficient retirement income
3-5 points - a lot of justification
Carmen makes regular 3,600 pension contribution. Basic rate tax relief. Tax free growth. IHT free. Flexible
Carmen makes Class 3 NICs if she has incomplete record. Increases her guaranteed pension. In good health so likely to be worth it for money. Has unused personal allowance so income may be tax free.
Review Fund choices on investments. Dont match ATR. Consider Multi-Asset funds, they use wider range of assets, actively managed, rebalanced regularly, reduces volatility within one fund.
Explain how class 3 NICs work + why its worth
8 points 3 justify
Voluntary contributions
Paid when NIC record is incomplete
Increases entitlement to state pension
Deadline of 31 July 2023 to make payments to any missed years
After deadline, payments need to be made within 6 years of shortfall
Does not require paid employment in shrotfall years
Payment can be made after SPA but only for prior years
15.85 for tax year 22/23.
State pension is triple locked
In good health so good value for money
Unused personal allowanec so can be tax free
Factors at next annual review
9 points
Changes to ATR
Changes in legislation
Changes in health
Performance
Use of allowances
Changes to objectives
Rebalancing
Changes in personal circumstances
Was gift made/ info on gift
