Financial planning needs that require a sum of money at a known future point, like university fees, are known as _____ events.
Predictable
Financial planning needs that may or may not occur, such as premature death or long-term illness, are known as _____ events.
Unpredictable
What is the typical main financial priority during the ‘young single’ stage of the financial lifecycle?
Emergency fund
During the ‘starting a family’ stage of the financial lifecycle, what financial need takes priority?
Financial protection - so insurance like life assurance
In the simplified financial lifecycle model, which phase covers the early years of a long-term relationship and starting a family?
Vulnerable years
In the simplified financial lifecycle model, which phase involves high disposable income but little time to make up pension shortfalls?
Anxious
What are the four key drivers of vulnerability in customers as identified by the FCA?
Health, life events, resilience, and capability.
According to the FCA, a vulnerable customer is someone who, due to personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with what?
Appropriate levels of care
In the simplified financial lifecycle model, which phase is characterised by increased income, good health, and children reaching independence?
Relaxed years
What is the standard personal allowance for income tax in the 2025/26 tax year?
£12,570.
By how much is an individual’s personal allowance reduced if their adjusted net income is over ¬£100,000?
It is reduced by £1 for every £2 of income over £100,000.
What is the Personal Savings Allowance for a basic-rate taxpayer in 2025/26?
1,000
An individual with an adjusted net income over what amount in 2025/26 will lose all of their personal allowance?
£125,140.
What is the Personal Savings Allowance for a higher-rate taxpayer in 2025/26?
500
What is the annual dividend allowance for income tax in the 2025/26 tax year?
500
What is the basic rate of income tax for non-savings and savings income in 2025/26?
20%
What is the higher rate of income tax for non-savings and savings income in 2025/26?
40
What is the basic rate of income tax for dividend income in 2025/26?
8.75
What is the higher rate of income tax for dividend income in 2025/26?
33.75
What is the correct priority order for taxing an individual’s multiple sources of income?
Non-savings income, savings income, dividend income, and then chargeable capital gains
