Chapter 4 - Retierment Solutions

Question 1

Planning process step one

Answer 1

You need to set objectives and aims for people beginning to retire. This includes
When
How
What are their capital needs
How much income they need

Question 2

Stages of life

Answer 2

Foundation - in 20s
Accumulation
Maintenance - begins at retirement

Question 3

Types of fund risk

Answer 3

High
Medium
Low/ medium

Question 4

Proceeds of business

Answer 4

Business disposal relief is a life time allowance of £1m meaning CGT is 10% rest is 20% .

Question 5

ISAs

Answer 5

Cash
Stocks and shares
LISA up to 450k age 60
Peer to peer.

Question 6

NS&I

Answer 6

no CGT and some have no income tax.

Question 7

Pension transfer rules

Answer 7

If over 30k then need advice
Check benifits are safeguarded

Question 8

Retirement options

Answer 8

Cannot access till 55. Then have
Annuity option
Uncrstlised lump sum
FAD
Per chase of scheme pension.

Question 9

Deccumulation

Answer 9

Taking money in bad year can compound has years so taking allowances in good years plus some can mean protecting pot in bad years which overall helps.

Question 10

Pension fund commutation

Answer 10

Trivial - only on DB scheme less than 30k pot
Small pots - less than 10k and means you can take three pension pots as small lump sums.
Serious health - when less than 12 months you can take