Chapter 1 - Context Of Pension Planning

Question 1

What were the 3 old state pensions called?

Answer 1

Graduated pension scheme
State earnings related pension scheme (SERPS)
State second pension (S2P)

Question 2

DB benefits are based off 3 things, these are

Answer 2

Pensionable salary
Pensionable service
Accrual rate

Question 3

4 ways a DC scheme may choose to take their income benefits

Answer 3

Lifetime annuity
Scheme pension
Drawdown (capped or FAD)
Uncrystallised Funds Pension Lump Sum (UFPLS)

Question 4

What is the current projected state pension age for a 30 year old?

Answer 4

68

Question 5

Under current legislation, a 52 year old employee is most likely to receive his State Pension:

Answer 5

At age 67

Question 6

The taxation of investment returns within a pension fund can best be described as…

Answer 6

Exempt from both CGT and income tax

Question 7

Hideki is a sole trader who employs one member of staff. If he makes a contribution to his employee’s personal pension plan, this will be treated as:

Answer 7

A business expense, and offset against his income tax liability

Question 8

What dates are the old state pensions available?

Answer 8

State Graduated Pension Scheme: between 1961 - 1975
SERPS: between 1978 - 2002
S2P: 2002

Question 9

When death benefits are paid from a defined contribution pension plan, a nominee is defined as any individual:

Answer 9

Other than a dependant who is nominated by the member to receive the benefits

Question 10

If someone has been self employed their whole career and retired before 2016, what state pension(s) are they entitled to?

Answer 10

Only the basic state pension