Planning Personal Finance - Pensions

What the three pillars of pension?

• 401(k) plans, individual retirement accounts, and annuities
• life insurance, stocks, and bonds
• real estate, gold, and collectibles
• social security, employer-sponsored plans, and personal savings

How many qualifying years do you need to achieve full pension in the UK?

• 25
• 40
• 35
• 30

Define qualifying years as it realtes to pension in the UK?

• Number of years a person needs to contribute to the National Insurance scheme
• Number of years a person needs to be a UK citizen
• Number of years a person needs to work in the public sector
• Number of years a person needs to contribute to the National Health Service

What are the national insurance contribution rates in the UK?

• 3% ,5%, and 10%

• 0%, 12% and 2%

• 4% and 5%

• 9% and 7%

How many percent increase UK pensioneers enjpy for every year of pension defferal?

• 8.1%
• 2.3%
• 3.6%
• 5.8%

What is the official retirement age in the UK?

• 70
• 65
• 60
• 66

What is longevity risk in pensions?

• The risk that retirees will live longer than expected and deplete pension funds.
• The risk that retirees will receive more pension funds than expected.
• The risk that retirees will not receive any pension funds.
• The risk that retirees will live shorter than expected and deplete pension funds.

What is automatic enrolment ?

• Automatic enrolment is a process where eligible employees are automatically enrolled into a workplace pension scheme by their employer.
• Automatic enrolment is a process where eligible employees are automatically enrolled into a savings account by their employer.
• Automatic enrolment is a process where eligible employees are automatically enrolled into a health insurance scheme by their employer.
• Automatic enrolment is a process where employees have to manually enroll themselves into a workplace pension scheme.

Which of this is one of the problems of pension freedom in the UK?

• Guaranteed high returns on investments
• No risk of running out of money in retirement
• Risk of poor investment decisions and running out of money in retirement
• Lack of flexibility in accessing pension funds

What is defined benefit?

• A defined benefit is a type of retirement plan where an employer promises to pay a specified monthly benefit to the employee upon retirement.
• A defined benefit is a type of retirement plan where the employee receives a percentage of their salary as a benefit upon retirement.
• A defined benefit is a type of retirement plan where an employee contributes a fixed amount of money each month.
• A defined benefit is a type of retirement plan where an employer promises to pay a lump sum amount to the employee upon retirement.