Question 4 Mr Johnson has just retired at 65 with a defined contribution pension pot £125,000. He is a smoker and has chosen not to drawdown anything from the pot. Mr Johnson is not concerned with inflation. From the following available annuities, what would be Mr Johnson's annual pension? Age Level Rate Smoker Level Rate Smoker 3% Escalation 55 £4,402 £5,271 £3,502 60 f4,836 £5,770 £4,036 65 £5,506 f6,403 £4,805 70 £6,306 £7,443 £5,754 75 £7,852 £8,848 £7,185 All annuities have been calculated on a pension pot of £100,000. Answer Annual Pension A £6,003 £6,006 £6,883 £8,004 B.

Question 4 Mr Johnson has just retired at 65 with a defined contribution pension pot £125,000. He is a smoker and has chosen not to drawdown anything from the pot. Mr Johnson is not concerned with inflation. From the following available annuities, what would be Mr Johnson's annual pension? Age Level Rate Smoker Level Rate Smoker 3% Escalation 55 £4,402 £5,271 £3,502 60 f4,836 £5,770 £4,036 65 £5,506 f6,403 £4,805 70 £6,306 £7,443 £5,754 75 £7,852 £8,848 £7,185 All annuities have been calculated on a pension pot of £100,000. Answer Annual Pension A £6,003 £6,006 £6,883 £8,004 B.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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