Week 9

Question 1

Give me 3 reasons why retirement planning is changing?

Answer 1

People are living longer, finances and technology evolve and family structure differ.

Question 2

State pension and PAYG. In basic how does it work?

Answer 2

State pension and PAYG, as you work you pay into basically someone else’s pension who has already retired, as will someone for you if you receive a state pension.

Question 3

What might 3 challenges to state pension be?

Answer 3

People over time will become more aware of their finances and not support it.

People are living longer.

The cost of living.

Question 4

Talk to me about pension before and after 2016?

Answer 4

Before 2016, you got a basic pension rate with chances of getting possible little extras, however after 2016 you get a basic tier rate now based on your NI contributions.

Question 5

State pension reform in Uk, the government changed state pension provision based on what 4 driving principles?

Answer 5

(PFSA)
Personal responsibly- People must plan their own retirement

Fairness- Give to the most needy

Simplicity- Make pensions easier to save for

Affordability & Sustainability- Keep it affordable now and for future

Question 6

How do you now qualify for full state pension in full and its minimum?

Answer 6

35 years of paying NI for full, 10 years for minimum

Question 7

What is the triple lock?

Answer 7

Pensions increase each year by either average earning going up, CPI increase or 2.5%