Managing my money
Managing my money

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Managing my money

7.2.6 Financial planning when saving for retirement

This quiz tests what you've learned about financial planning when saving for retirement.

Activity 1

Dibyesh is in his 30s and is using the financial planning model to help him plan ahead for retirement.

Which one of the following would Dibyesh do in Stage 1 of the financial planning model (‘Assess the situation’)?

a. 

Choose a personal pension with SIPPly Pensions Ltd


b. 

Work out that saving £250 a month could provide the amount of retirement income he wants


c. 

Think about how much he might want to spend in retirement


d. 

Check to see how his pension savings are growing


The correct answer is c.

c. 

Well done! He must identify his goal, so this is part of Stage 1.


Which one of the following would Dibyesh do in Stage 2 of the financial planning model (‘Decide on financial plan’) when planning for retirement?

a. 

Check his state pension age


b. 

Check how much pension he might get from an old employer’s pension scheme


c. 

Look at the pros and cons of saving through a pension plan or saving through an individual savings account


d. 

Use a comparison site to compare personal pension plans from different firms


The correct answer is c.

c. 

Well done! Yes, this would be part of Stage 2, deciding on the broad type of products he could use.


Which one of the following would Dibyesh do in Stage 3 of the financial planning model (‘Act on financial plan’) when planning for retirement?

a. 

Go to a financial adviser for help choosing a pension provider


b. 

Get a state pension statement to see how much state pension he might get


c. 

Check his budget to see how much he can afford to save


d. 

Work out the gap between the retirement income he wants and the pension funds he has built up so far


The correct answer is a.

a. 

Well done, this would be done at Stage 3


Which one of the following would Dibyesh do in Stage 4 of the financial planning model (‘Review the outcome’) when planning for retirement?

a. 

Complete an application form to start a personal pension plan


b. 

Set up a direct debit to start paying into a pension plan


c. 

Decide which investment funds his pension contributions will be invested in


d. 

Check whether he should alter the amount he saves each month following an increase in his state pension age


The correct answer is d.

d. 

Well done! Yes, this sort of change would trigger a review under Stage 4.


MMM_1

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