Pension Basic Calculation: Quiz!

The correct answer is "On their next policy anniversary." When a client requests a review, it will apply to their pension on the date of their next policy anniversary. This means that the review will take effect on the anniversary of when their policy was initially established.

The client can request a review at any point they want because there are no specific restrictions or limitations mentioned in the question. This means that the client has the freedom to request a review whenever they feel the need for it, regardless of any specific time or event such as their policy anniversary, birthday, or a specific date like 6th April each tax year.

Refunding contributions back to a client from their pension is not possible. However, it is possible to refund contributions over and above the client's level of earnings. In order to do so, the client will be asked to write to the company incorporating a special declaration. This suggests that there are certain conditions and procedures that need to be followed in order to refund contributions in excess of the client's earnings.

A client cannot top up their pre-A-Day pension because pre-A-Day pensions were closed to new contributions after 5th April 2006. Therefore, the correct answer is "Never."

A review can be done up to 60 days prior to the review date. This means that the review can be conducted anytime within the 60-day period leading up to the scheduled review date. This allows for ample time to assess and evaluate the necessary information and provide feedback or make any necessary adjustments before the actual review date.

In December 2007, the standard lifetime allowance limit was £1,600,000.00.

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The current standard lifetime allowance limit is £1,500,000. This means that individuals can save up to this amount in their pension pots without incurring additional tax charges. Any amount above this limit may be subject to tax charges when withdrawn.

David is a 46-year-old plumber, which means he is not yet eligible to request his Tax-Free Cash from his pension. Typically, individuals can start accessing their pension funds and receive Tax-Free Cash from the age of 55 onwards. Since David is only 46 years old, he would not be able to get any Tax-Free Cash from his pension today, hence the correct answer is £0.00.

The GAD income is calculated by dividing the pension pot by the GAD rate. In this case, Pat's pension pot is £104,600.00 and the GAD rate is £49.00. Dividing £104,600.00 by £49.00 gives us £2,134.69. However, there is a maximum GAD income limit, which is 120% of the single-life annuity rate. Since the given answer is £4,612.86, it is likely that this is the maximum GAD income that Pat would receive.