ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

Employees can participate in both personal and occupational pension schemes, making the answer correct.

Occupational pension schemes are typically provided by employers and are designed to provide retirement benefits to employees based on their earnings and length of service. These can be either defined benefit schemes, which promise a specific payout at retirement, or defined contribution schemes, which depend on the contributions made and the investment performance.

On the other hand, personal pension schemes are set up by individuals to save for retirement independently of their employer. These are particularly useful for self-employed persons or those whose employers do not offer pension schemes, allowing employees to take control of their pension investments.

By allowing participation in both types of schemes, employees have flexibility in planning their retirement savings. They can benefit from employer contributions through occupational schemes while also building up their retirement savings through personal schemes tailored to their individual needs.