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SP4 - ch13 Investment

B

Bharti Singla

Senior Member
While reading Q13.2 and Q13.3 it seems like both are asking the same thing i.e. investment considerations in a pension scheme, with Q13.3 more specific to DC scheme.

But the points given in the solutions differ for both. Is there any specific difference in both these questions?
 
I believe Q13.3 talks about 2 specific things as one where choice of funds is provided and secondly on decumulation option wherein annuities will be purchased out on retirement.
 
Hi Bharti

The two questions are worth similar numbers of marks, but Q13.2 doesn't contain much information so we need to be quite high-level. The command verb is 'outline', suggesting we need only describe briefly without elaboration or explanation - so we need a broad range of ideas.

As you say, Q13.3 is more specific - we need to cover DC schemes only. As Sanchit says, we are also given some other information in the question, which we either need to refer to directly in our answer, or it will guide us as to what is important / not important. The command verb is 'Describe', implying we need to go into a little more detail than in Q13.2

In summary, it is these differences which lead to differences in the solutions. Hope that helps!

Gresham
 
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