Friday Five Focus on Pensions – 22 July – 5 Questions in 5 Minutes

Friday Five Focus on Pensions – 5 Questions in 5 Minutes Every Friday
What’s this all about?
Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Pensions; this is useful as you prepare for the CII’s R04, AF7, or J05 exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.
Questions
IMPORTANT! These questions relate to examinable tax year 2021/22, examinable by the CII until 31 August 2022. They do not relate to tax year 2022/23 which is only examinable by the CII from 1 September 2022.
- Which type of pension arrangement will always provide benefits via a scheme pension?
- A Retirement Annuity Contract
- A defined benefit pension scheme
- A Small Self-Administered Scheme
- A defined contribution occupational scheme
- Tom has recently declared himself bankrupt. Once a bankruptcy order is made, who will be appointed to administer Tom’s estate?
- Trustee in Bankruptcy
- Administrator
- Personal representative
- Legal executive
- In assessing her eligibility for State Pension Credit, Molly has declared savings of £14,000. This means that, on this information alone, she will:
- be unable to claim any Pension Credit.
- be assumed to have, from own sources, a weekly income of £8.
- be assumed to have, from own sources. a weekly income of £14.
- be assumed to have, from own sources, a weekly income of £28.
- The lifetime allowance is reduced by a percentage for each year before normal pension age that someone (who was entitled to a special low retirement age prior to ’A’ day) is taking benefits after 6 April 2006?
- 10%
- 5%
- 3.5%
- 2.5%
- Sam, age 42 and a higher rate taxpayer, is looking at ways of investing for retirement that will NOT involve pension plans. He only wants to invest in areas where tax relief is available to him. As his financial adviser, you should be aware that you could consider recommending: Tick all that apply.
- venture capital trusts.
- stocks and shares ISAs.
- buy to let properties.
- seed enterprise investment schemes.
Answers
- B – See R04 Study Text, Chp 3
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R04 Study Text, Chp 9
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R04 Study Text, Chp 3
Grab our taster mock exam paper for CII R04 Click here to download.
- AD – See R04 Study Text, Chp 10
Grab our taster mock exam paper for CII R04. Click here to download.
How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?
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