Pension Basic Calculation: Quiz!

10 Questions | By Ruston20 | Last updated: Mar 20, 2022 | Total Attempts: 174

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Most people save up a pension fund to save them on a rainy day or to give them some income when they retire. Most people are introduced to different ways through which you can calculate the total amount you will get a pension. Below are a basic pension calculation, and trivia questions give it a try and see how well you understand it.

Questions and Answers

1.

What is the current standard lifetime allowance limit?
- A.
  
  £1,800,000.00
- B.
  
  £1,250,000.00
- C.
  
  £1,500,000.00
- D.
  
  £1,600,000.00
2.

What was the standard lifetime allowance limit in December 2007?
- A.
  
  £1,500,000.00
- B.
  
  £1,800,000.00
- C.
  
  £1,650,000.00
- D.
  
  £1,600,000.00
3.

When can the client request a review?
- A.
  
  At any point they want
- B.
  
  On their next policy anniversary
- C.
  
  On their Birthday
- D.
  
  On 6th April each tax year
4.

If a client requests a review, when will it apply to their pension?
- A.
  
  At any point they want
- B.
  
  On their Birthday
- C.
  
  On their next policy anniversary
- D.
  
  On 6th April each tax year
5.

How many days prior to a review date can a review be done?
- A.
  
  10 days
- B.
  
  30 days
- C.
  
  60 days
- D.
  
  90 days
6.

When can a client top up their pre-A-Day pension?
- A.
  
  Never
- B.
  
  At any point they want
- C.
  
  6th April
- D.
  
  On the client's 75th Birthday
7.

David's brother Pat is 60 years old and also has a pension pot of £104,600.00. If he were to crystallize his pension today using a GAD rate of £49.00, what would his maximum GAD income be?
- A.
  
  £6,150.48
- B.
  
  £4,612.86
- C.
  
  £5,125.40
- D.
  
  £3,844.05
8.

Calculate the standard lifetime allowance usage of the following: IAS states an event date of 01/12/2012 – The Lump Sum (BCE6) is showing as an amount of £9,000.
- A.
  
  0.51%
- B.
  
  0.23%
- C.
  
  0.54%
- D.
  
  0.60%
9.

An adviser has requested that we refund contributions back to a client from their pension. Can this be done?
- A.
  
  It is not possible to refund contributions back to a client from their pension
- B.
  
  It is possible to refund contributions over and above the client's level of earnings - we will ask the client to write to us incorporating a special declaration
- C.
  
  It is possible to refund contributions back to the client with no questions asked
- D.
  
  It is possible to refund contributions back to the client so long as their financial adviser agrees that the payment was made in error
10.

David is a 46-year-old plumber who has a pension worth £104,600.00. If he were to request his Tax-Free Cash today, how much would he get?
- A.
  
  £0.00
- B.
  
  £26,150.00
- C.
  
  £20,920.00
- D.
  
  £52,300.00