The correct answer is: A. Anticipated fall in income.
A pension policy is a financial plan that provides income to individuals after they retire. The need for a pension policy arises from the fact that most people’s income will decline after they retire. This is because they will no longer be working and earning a salary. In addition, they may have to pay for health care and other expenses that they did not have to pay for when they were working.
A pension policy can help to ensure that people have a steady income after they retire. It can also help to protect them from the risk of outliving their savings.
The other options are not as important as the anticipated fall in income. Lack of employment opportunities may be a problem for some people, but it is not as common as the anticipated fall in income. Likely deterioration in health is a problem that everyone faces, but it is not as specific to retirement as the anticipated fall in income. Uncertainty over investment performance is a risk that everyone faces, but it is not as specific to retirement as the anticipated fall in income.
In conclusion, the general need for a pension policy results from the existence of the anticipated fall in income.