QUESTION: 21

Stephen is about to commence taking benefits from his personal pension scheme, which includes protected rights. He should be aware that:

He can take up to 25% of the total fund as a pension commencement lump sum
He has the right to exercise the open market option
His whole pension fund must provide limited price indexation in payment
The value of the protected rights element will not count towards the lifetime allowance

Answer(s): A,B

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QUESTION: 22

Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pension prior to retirement. He should be aware that:

The asset mix of the fund will be adjusted automatically on pre-determined dates
His ongoing exposure to equities will reduce with life styling
After 10 years, a maximum of 25% of the investments will be in bonds
Life styling is likely to be appropriate if he intends to purchase a conventional annuity with his entire fund.

Answer(s): A,B,D

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