There was a great question asked on the AF5 forum and it’s worth sharing – if only to alert all AF5 members to the forum and THE place to share valuable insights.

The question asked has come up in previous pension exams, but not quite in this format, which is the beauty of the AF5 exam.

I was guilty of a schoolboy error on the calc; it is indeed a 5/5 matching – based on PAYE (which is most likely).

The key to the AE ‘tiered contribution’ is either

Basic pay is pensionable:

Contribution phasing/Min Er/Total
Phase 1 Staging date – Sept 2017/2%/3%
Phase 2 Oct 2017 – Sept 2018/3%/6%
Phase 3 Oct 2018 onwards/4%/9%


Total pay is pensionable

Contribution phasing date/Min Er/Total
Phase 1 Staging date – Sept 2017/1%/2%
Phase 2 Oct 2017 – Sept 2018/2%/5%
Phase 3 Oct 2018 onwards/3%/7%

Either way Peter is covered on all contribution basis
It meets the AE criteria based on above, BUT it still MUST meet the other AE criteria (outlined in the analysis).

Based on Paul’s great question and analysis, I think you have made my mind up; this is a 90% possible question in the exam.
Worth looking over our financial planning analysis background notes on AE and reading them in detail.

Keep an eye on the forum, folks! :-)