BoK Statement

Identify factors that influence the pension benefit amount for a defined contribution pension plan member, such as:
- Amount of money contributed to the account
- Length of investment time horizon
- Earnings on the amount invested
Identify that the employee retains the risk for the value of the pension benefit received from the plan.
Estimate the projected pension benefit for a defined contribution pension plan member.
Estimate the tax impact of receiving a pension benefit from a defined contribution pension plan.
Explain the pension benefit options that may be available to a defined contribution pension plan member.
Explain how each of the factors may impact the decision to commence receiving a pension benefit from a defined contribution pension plan, such as:
- Life expectancy
- Cash flow needs
- Impact on government benefits
- Tax impact
Evaluate the factors to consider that may impact the decision to commence receiving a pension benefit from a defined contribution pension plan.

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of

Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource

Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it

Compare

To note the similarities and differences between two or more things

Estimate

To determine an approximate value for

Calculate

To find the value using mathematics

Convert

To change from one form or purpose to another

Evaluate

To reach a conclusion or make a judgement through careful study

Interpret

To give the meaning of / to construe or understand / to translate orally

Read more about the Taxonomy used in the FP-BoK

Financial Planning Body of Knowledge