A Look at Recent Past Papers for the CII J05 Exam – July 2024
In this article, we are taking a look at the questions asked in the last four exam papers of the CII’s Diploma in Financial Planning J05 exam paper– this is the exam on Pension Income Options. This will be useful reading for you if you are preparing to sit this exam in the near future; it will help you to focus your revision on the areas that are likely to be examined.
This article is correct as at 2 July 2024.
The exam has historically started with a lifetime allowance calculation question. However, following the abolition of the allowance, the last two have surrounded lump sum calculation. Questions comparing the different types of pension arrangements and/or the death benefits or each have also been posed each time.
Statutory minimum increases to a pension from a DB scheme, State pensions, divorce, BCEs and cashflow modelling have been regularly tested and scams have also come up on multiple occasions.
| Enhanced protection and lump sum protection. | Maximum PCLS entitlement. | LTA treatment of scheme benefits. | LTA treatment of benefits at age 75. |
| 2028 protection. | 2028 protection. | Uncrystallised Fund Pension Lump Sum. | The transfer process. |
| Triviality and small pots. | Annuities versus scheme pensions and pension increase exchange. | Further information required to advise on a defined benefit transfer. | Benefits of applying for fixed and individual protection. |
| Factors to consider when taking flexi-access drawdown or annuity. | Pros and cons of cashflow modelling. | Death benefits. | Life expectancy and longevity risk. |
| Reasons to draw from personal pension or GPP. | Sequencing risk and mitigation. | Factors to consider when comparing taking a PCLS or UFPLS. | Scheme benefits versus pension transfer. |
| Income withdrawal recommendations factors to consider. | Uncrystallised funds pension lump sum considerations. | Pension sharing orders versus earmarking orders. | Taxation of deferred state pension. |
| Investment scams. | Dependents, nominees and successors definitions and criteria. | State pension qualifying years and gap fill. | Small pots lump sums. |
| State pension calculation. | Pension death benefits from uncrystallised funds and potential IHT scenarios. | Cashflow modelling and mitigation of longevity risk. | Taxation of phased capped drawdown. |
| Factors to consider when comparing taking a PCLS or UFPLS. | PPF versus FSCS protection. | Fixed term annuities. | Factors to consider when comparing taking a PCLS or UFPLS |
| Spousal bypass trusts. | State pension statements/guarantee credit. | Conditions for ill health early retirement. | Spousal bypass trusts. |
| Reasons to draw from ISAs over dependents drawdown. | Pension consolidation – information required from the scheme. | 2028 transitional protections. | Cashflow modelling and stress testing. |
| Death benefit available from defined benefit and personal pension pre-75. | PCLS, UFPLS and taxable income. | Death benefit nominations. | Pension input amount calculation. |
| Cashflow modelling and risks. | Flexi-access drawdown annual. | Pension scams. | Annuity and drawdown death benefits. |
| Earmarked investment strategies. | Attitude to risk and factors which influence it, capacity for loss. | Reasons to convert a capped drawdown plan. | Lifetime annuity versus flexi-access drawdown. |
| Pension sharing versus earmarking. | Drawbacks of relying on business sale proceeds as a retirement funding strategy. | Income withdrawal recommendations. | Drawdown risk warnings. |
Here we take a look at the questions asked in four recent exam papers for #CII #J05. Share on X
As you can see, there are numerous areas of the syllabus which have been tested but the manual is a manageable size and should be studied carefully and in full before attempting the exam. We cannot emphasis enough the importance of familiarising yourselves with the past exam guides, which provide vital guidance in terms of recurring themes.
Grab the resources you need!
If you’re studying for your CII J05 exam, and you’re wanting to feel confident on exam day, grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the J05 Mock Paper Taster now!
