The Main Changes in the 2026-27 CII R04 and R05 Study Texts
Over the past few weeks, we’ve been looking at some of the key changes to the CII Diploma study texts for the 2026/27 examinable tax year. Following our recent article on R02 and R03, this time we take a look at the main updates to the CII’s R04 and R05 study texts.
This article is correct as at 29 August 2026 and is relevant to the 2026/27 examinable tax year.
There has been no major syllabus change. The majority of the updates for R04 stem from the Pensions Act 2026. There were very few changes generally in the R05 syllabus.
R04 – Key changes:
Chapter 1 – Context of pension planning
Changes to the IHT treatment of pensions due to take effect from April 2027 have been incorporated within the timeline.
Figures necessary in terms of income required to enjoy a basic, moderate and comfortable retirement have been updated.
The Office for National Statistics has published new research on funded occupational pension schemes in the UK as of April 2026. The findings are summarised in the textbook.
Updates to annuity rate charts and figures with effect from April 2026 are provided.
Chapter 2 – HMRC tax regime: contributions and allowances
Numerous updates are made throughout the chapter. These chiefly relate to the change of tax year as there have been no material changes to rates or allowances.
Chapter 4 – Pensions regulation
The Pension Schemes Act 2026 received Royal Assent on 29 April 2026. This significantly expands the remit of The Pensions Regulator in respect of occupational defined contribution schemes. The key areas covered in the text include scale and consolidation, the new Value for Money framework, defined benefit superfunds and potential surplus release to sponsoring employers.
Updates to the Financial Ombudsman Service compensation limits for the new year. The Pension Protection Fund has also announced a zero conventional levy for the 2026/27 year, following on from the same during 2025/26. Finally, the Financial Assistance Scheme compensation cap has been increased to £47,183 a year.
Chapter 5 – Defined benefit schemes
New section on treatment of scheme surplus has been added. This is a result of the Pension Schemes Act 2026 which introduces powers to allow trustees to modify scheme rules to allow the return of surplus to an employer, subject to a tax charge and appropriate governance.
Content has also been added regarding pension superfunds, a new proposal for sponsoring employers which wish to end their liability. These were also legislated for under the Pensions Schemes Act 2026.
Chapter 6 – Defined contribution schemes
The Financial Reporting Council (FRC) has issued new guidance on the assumptions used for Statutory Money Purchase Illustrations (SMPIs) to be used from 6 April 2026.
A Value for Money framework has been introduced for trust-based defined contribution schemes requiring consideration of whether costs and charges represent good value. These will be assessed against prescribed metrics and rated ‘delivering’, ‘intermediate’ or ‘not delivering’. The first assessments are targeted for 2028 with data collection to begin in 2027.
Scale requirements have been introduced for group personal pension scheme providers operating workplace schemes used for auto-enrolment. Each provider will need to have at least one main scale default arrangement holding £25 billion or more to remain a qualifying scheme. A transitional pathway will be available for providers with more than £10 billion who can show potential to reach scale. Further details are expected during 2026/27.
Trustees of trust-based defined contribution schemes will be required under the Pension Schemes Act 2026 to offer one or more ‘default benefit solutions’ (a.k.a. guided retirement). Provisions are also included to allow providers of contract-based schemes to bulk transfer pots to another provider without member consent in certain circumstances.
Chapter 8 – Flexible income options
The FCA’s targeted support regime took effect from 6 April 2026. This is a new regulated activity which sits between guidance and full regulated advice and for which a separate FCA permission is required. This covers ready-made suggestions which are designed for groups of customers displaying specific characteristics.
Chapter 9 – State schemes and an individual’s pension planning
State pension and national insurance rates and allowances have been updated for the new tax year.
Chapter 10 – Retirement planning considerations
Tax rates and allowances updated to 2026/27 figures and the chapter has also been amended to reflect the inclusion of pensions within the estate.
R05 – Key changes:
Chapter 1 – Market factors and trends in financial protection planning
New life expectancy figures have been provided in accordance with guidance from the Office for National Statistics.
Updated figures have also been provided regarding the number of customers with private insurance provision in the UK.
Chapter 3 – State benefits
All benefit rates and allowances have been updated for the 2026/27 tax year. The standard rate of interest for support for mortgage interest has also been updated.
The process of moving all legacy benefit claimants to Universal Credit is expected to take until late 2026.
Chapter 8 – Long term care insurance
Changes to rates of attendance allowance and the personal expenses allowance for the 2026/27 tax year. Also updates made to the lower and upper limits for savings for state assistance with care costs.
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