A Look at Recent Past Papers for the CII J05 Exam – July 2023
In this article, we are taking a look at the questions asked in four recent 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 18 July 2023.
You’ll see from the summary table below the exam has started with an LTA calculation in each of the last four exams. Quite how this will play out following its scheduled abolition remains to be seen. Questions comparing the different types of pension arrangements and/or the death benefits of each have also been posed each time, specifically the pros and cons of a pension commencement lump sum against an uncrystallised funds pension lump sum.
Statutory minimum increases to a pension from a DB scheme, State pensions, divorce, BCEs, and cashflow modelling have also been regularly tested.
| LTA treatment of scheme benefits | LTA treatment of benefits at age 75 | LTA text at age 75 | LTA calculation |
| Uncrystallised Fund Pension Lump Sum | The transfer process | Death benefits from scheme pension and flexi-access drawdown | Criteria to exercise the right to take benefits early |
| Further information required to advise on a defined benefit transfer | Benefits of applying for fixed and individual protection | Factors to consider when comparing taking a PCLS or UFPLS | Death benefits of DB scheme v FAD |
| Death benefits | Life expectancy and longevity risk | PPF and FSCS protection | Statutory minimum increases to a DB pension in payment |
| Factors to consider when comparing taking a PCLS or UFPLS | Scheme benefits versus pension transfer | Fact finding for a defined benefit transfer | Dependants annuity |
| Pension sharing orders versus earmarking orders | Taxation of deferred state pension | State pension statements | Obligations of trustees on request of a TV form a member |
| State pension qualifying years and gap fill | Small pots lump sums | Circumstances to be considered when making drawdown recommendations | Continuing FAD v annuity purchase |
| Cashflow modelling and mitigation of longevity risk | Taxation of phased capped drawdown | Risk profiling | Factors to consider when comparing taking a PCLS or UFPLS |
| Fixed term annuities | Factors to consider when comparing taking a PCLS or UFPLS | State pension payment and tax | Consolidating pension |
| Conditions for ill health early retirement | Spousal bypass trusts | Phased drawdown versus annuity | Pension attachment order |
| 2028 transitional protections | Cashflow modelling and stress testing | Drawbacks of ISA versus pension | State pension entitlement indexation |
| Death benefit nominations | Pension input amount calculation | Cashflow modelling advantages and disadvantages | Sustainable withdrawal rates |
| Pension scams | Annuity and drawdown death benefits | Individual protection 2016 eligibility criteria | Death benefit nominations |
| Reasons to convert a capped drawdown plan | Lifetime annuity versus flexi-access drawdown | Pension scams and protection | Capacity for loss |
| Income withdrawal recommendations | Drawdown risk warnings | Information required to advise on a switch out of a retirement annuity contract | Pension Wise guarantee and considerations outlined in the Money Advice Service retirement income options tool |
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 several 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 emphasise enough the importance of familiarising yourselves with the past exam guides, which provide vital guidance in terms of recurring themes.
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