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CTFA · Question #3

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

The correct answer is A. He can take up to 25% of the total fund as a pension commencement lump sum B. He has the right to exercise the open market option. See the full explanation below for the reasoning.

Investment Management

Question

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

Options

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

How the community answered

(37 responses)
  • A
    78% (29)
  • C
    8% (3)
  • D
    14% (5)

Topics

#personal pension#protected rights#pension commencement lump sum#open market option

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