Exam ICWIM Topic 1 Question 171 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 171
Topic #: 1
Your client estimates that they will require £50,000 of income annually to live off when they retire. Personal plus state pension will provide £40,000. They wish to retire in 25 years' time. It is estimated that they can earn 5% per annum, and inflation has been forecast at 2%. Interest rates are currently 1.5%. Allowing for inflation, what lump sum would they need to accrue to supplement their pension?

Suggested Answer: B Vote an answer

To calculate the required lump sum, we need to determine the present value (PV) of future withdrawals, adjusted for inflation and investment growth.
A screenshot of a paper AI-generated content may be incorrect.

Reference: CISI Wealth & Investment Management (Retirement Planning), FCA Pensions Guidance.

by Arvin at Mar 10, 2026, 11:27 AM

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