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 55 60 65 Smoker Level Rate £5,271 £4,836 £5,770 £5,506 £6,403 70 £6,306 £7,443 75 £7,852 £8,848 All annuities have been calculated on a pension pot of £100,000. Annual Pension £6,003 £6,006 £6,883 £8,004 Answer A B с Level Rate £4,402 D Smoker 3% Escalation £3,502 £4,036 £4,805 £5,754 £7,185
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 55 60 65 Smoker Level Rate £5,271 £4,836 £5,770 £5,506 £6,403 70 £6,306 £7,443 75 £7,852 £8,848 All annuities have been calculated on a pension pot of £100,000. Annual Pension £6,003 £6,006 £6,883 £8,004 Answer A B с Level Rate £4,402 D Smoker 3% Escalation £3,502 £4,036 £4,805 £5,754 £7,185
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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
В
f6,006
£6,883
£8,004
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