To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions…
Emma had a claim under her reviewable income protection policy last year. How will this affect the premium she pays at her policy’s first review next year?
A) The premium will stay the same
B) The premium will go up because she has made a claim
C) The premium will go up because of her claim but could go down again if she does not claim again in future
D) Experience is based on the portfolio rather than any individual policy, so her claim would have little impact on the outcome
Jeff is 62. What pension credit can he claim at present?
B) Guarantee credit only
C) Savings credit only
D) Guarantee credit and savings credit
John is both a trustee of a DB pension scheme and finance director of the sponsoring employer. The same firm of professional advisers has also recently been appointed to advise both the trustees and the employer. Which of the following in relation to any conflict of interest that may arise is correct?
A) The firm of professional advisers will benefit from being paid double the fee for a very similar job
B) A firm of professional advisers should not allow themselves to be put in this position where a conflict of interest exists and they should always walk away
C) The finance director must act as a trustee and there must be a documented process for dealing with any conflict of interest
D) The Pensions Regulator will not allow senior members of the sponsoring employer to become trustees
Questions supplied by CPD Centre
Scroll down for answers