LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A client's registered pension plan has a 'bridge benefit'. This is:
- A temporary extra pension from early retirement until CPP and OAS begin, then it stops
- BA lump sum paid at retirement to bridge the gap until the first regular pension payment arrives
- CIndexing of the pension to inflation during the years between retirement and age 65
- DA survivor pension that bridges the spouse's income until the survivor's own CPP begins
Correct answer: A) A temporary extra pension from early retirement until CPP and OAS begin, then it stops
Bridge benefits smooth early retirement income. Clients must plan for the drop when the bridge ends.
Why the other options are wrong
- BIt is a periodic payment, not a lump sum.
- CIndexing adjusts for inflation and is a separate feature.
- DSurvivor benefits are separate from the bridge.
Exam tip
Bridge benefit ends at 65; plan for the step-down.
Common mistake
Projecting the bridged pension amount for life.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.