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Fund Research & Insights

Take Our Savings Quiz

Test your knowledge on planning for your financial future.

Bob Freeman, 8 September, 2008 | 2:45PM
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As part of Financial Planning Week, we'll be presenting a quiz each day to help you better define your goals and build a sound financial plan. Our first quiz for Day 1 of Financial Planning Week covers some key points to bear in mind when making plans for the future.
  1. If inflation for the next 20 years stays at around 3% per annum, £100,000 today will be worth:
    1. Around £75,000
    2. Around £65,000
    3. Around £55,000
    4. Around £45,000

  2. Which expenditure area typically increases most as a proportion of total income post-retirement?
    1. Housing costs

      >Energy costs

    2. Medical costs
    3. Visiting night clubs

  3. For a man in the UK aged 65 today, what is his average life expectancy?
    1. 73 years
    2. 75 years
    3. 78 years
    4. 82 years

  4. …and for a woman in the UK aged 65?
    1. 75 years
    2. 78 years
    3. 81 years
    4. 86 years

  5. What is the State's definition of a "minimum income" for someone over 60, used to calculate Pension Credits?
    1. Single person: £124 per week; couple: £189 per week
    2. Single person: £141 per week; couple: £205 per week
    3. Single person: £165 per week; couple: £229 per week
    4. Single person: £202 per week; couple: £265 per week

Answers:

  1. Answer b. Remember, this means that in 20 years time, given only 3% per annum inflation, your money will only buy two thirds of what it does today.
  2. Answer b. As we get older, we spend a higher proportion of disposable income on heating, lighting etc.. Remember, we tend to spend more time at home after we’ve retired. Older people also tend to feel the cold more and need more artificial light as eyesight becomes less sharp.
  3. Answer d. According to the Department for National Statistics, the average life expectancy for a male residing in the UK has risen to its highest ever level of 81.9 years.
  4. Answer d. You guessed it! Again according to the Department for National Statistics, the average life expectancy for a female residing in the UK has also risen to its highest ever level, and it’s now reached 85.7 years.
  5. Answer a. Plus someone over 65 may get a small additional credit if they’ve saved for their retirement.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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