The October R06 case studies are out, and the exam is on Tuesday 6 October 2026 at 1:00pm UK time. Your revision now needs to centre on Colin and Judith, and Kavi.
We have read both case studies closely. Here is where we would spend the remaining revision time and why. Nobody outside the CII knows the questions, so treat these as informed priorities rather than predictions.
R06 rewards application. A paragraph on pensions or protection that could apply to anyone will not score well. Use the clients' names, figures, aims and constraints in every answer.
Start with the six aims
The aims at the end of each case study provide a useful revision plan.
Colin and Judith want sustainable retirement income, a suitable home for the £200,000 house-sale proceeds in case care fees arise, and a review of their investments. Kavi wants to protect his children if he dies or becomes seriously ill, rebuild his emergency savings, and use the £1,000 a month his parents plan to give him wisely.
Know these aims well enough to connect every recommendation to one of them.
Case Study 1: Colin and Judith
Colin and Judith are both 68, retired and in good health. They have downsized to a £275,000 home. Each receives a State Pension of £12,500 a year and withdraws £850 a month from ISAs worth £635,000, invested in global equity trackers. Their untouched defined contribution pensions are worth £240,000 and £190,000. The £200,000 released from their house sale is in instant-access cash in Colin's sole name. Colin also has £80,000 of inherited AIM shares that have not been reviewed for eight years.
The issue is not a shortage of money. It is how they organise it for income, risk and possible care costs.
Establish the income requirement
Their known receipts are £25,000 of State Pension plus £20,400 of ISA withdrawals, giving them £45,400 before touching either pension. The State Pensions use most or all of each Personal Allowance, while the ISA withdrawals are tax-free.
Before advising, ask about their expenditure and required net income, whether the ISA withdrawals are sustainable, how much guaranteed income they want and how their needs may change. You also need the pension charges, guarantees and death benefits, their State Pension records, health and longevity expectations, plans for capital spending and any wish to leave money to Rose.
It would be easy to jump straight to a pension product here, but the income gap has not yet been established. Their spending may fall after the move, or rise later if either needs help at home. Separate essential spending from discretionary spending and ask how much income must be secure. That gives you a basis for deciding how much investment risk they can afford to take.
Pension withdrawals
Be ready to compare flexi-access drawdown, UFPLS, a lifetime annuity and phased crystallisation.
Phased withdrawals could use available tax bands and provide tax-free cash within the lump sum allowance. Drawdown offers flexibility and continued investment but introduces sequencing and investment risk. An annuity provides certainty and longevity protection, although escalation and death benefits reduce the starting income. With UFPLS, 25% is normally tax-free and 75% taxable, so a large payment could create an unnecessary tax bill. Taking flexible taxable income can also trigger the Money Purchase Annual Allowance.
Treat Colin and Judith separately because their pot sizes, funds and tax positions differ. Any recommendation should refer to their existing £45,400 income, untouched pensions, age and wish to retain options for later life.
We would also consider using more than one method. Part of the required income could be secured with an annuity while the balance remains in drawdown for flexibility. The answer should explain why that division suits them rather than presenting one product as universally best. Check whether either pension has valuable guarantees before recommending a transfer or withdrawal.
The £200,000 may be needed for care
The money must remain easily accessible if either of them needs long-term care. We would keep an appropriate amount in instant-access cash and spread deposits across authorised institutions within FSCS limits. Notice or fixed-term accounts may suit money that will not be needed immediately, perhaps with staggered maturity dates. Compare access, rates, inflation and tax on interest, then review the arrangement as their health and circumstances change. If care becomes imminent, specialist advice on an immediate-needs annuity may be appropriate.
The money is in Colin's sole name, which affects the tax on interest and Judith's access if he loses capacity. The case study does not mention Lasting Powers of Attorney, so expect to discuss them.
Do not become distracted by chasing the highest rate. Access is part of the return when money has been earmarked for an uncertain care need. Their Personal Savings Allowances and the ownership of the accounts will also affect the net interest they receive.
Their investments need a proper review
They describe themselves as moderate-risk investors, yet the £635,000 of ISAs is held in global equity trackers. Colin's pension uses a global managed fund, Judith's a UK multi-asset fund, and Colin also owns £80,000 of individual AIM shares. For a retired couple drawing income, that deserves scrutiny.
Consider the total equity exposure, sequencing risk, defensive assets, overlap between the global holdings, UK bias in Judith's pension, charges, benchmarks and rebalancing. Reassess their attitude to risk and capacity for loss now that they rely on the portfolio. They are not interested in ESG, so record that preference and concentrate on suitability, risk, cost and their objectives.
Look at the household position as a whole rather than reviewing each account in isolation. The large cash balance reduces some short-term risk, but it has a specific purpose and should not automatically be treated as the defensive part of their retirement portfolio. Their regular ISA withdrawals make the order of investment returns particularly important.
Colin's AIM shares
The shares were inherited eight years ago and have never been reviewed. Keeping them may offer growth and inheritance tax relief if the conditions are met. The drawbacks include concentration, volatility, limited liquidity, less research coverage and the possibility that they no longer suit Colin's moderate risk profile or the couple's income and care needs. Check each holding against the Business Relief rules.
Revise the inheritance tax treatment of qualifying AIM shares from 6 April 2026. Do not assume every share qualifies or that historic relief continues unchanged. Use the tax tables supplied in the exam.
If disposal is considered, check the probate value, current gains or losses and dealing costs, and whether sales should be phased. Both clients have used this year's ISA allowances, so Bed and ISA must wait until the new tax year.
Estate and later-life planning
Their mirror wills leave everything to the survivor and then to Rose. Review the ownership and size of the estate, nil-rate bands, whether the home passes to a direct descendant, the AIM shares, pension nominations and the planned inclusion of unused pensions in estates from April 2027. Check that the wills still reflect their wishes after the move, and arrange LPAs for property and financial affairs and for health and welfare.
Do not suggest giving away or hiding capital to obtain local authority support. Care planning should preserve choice and affordability without deliberate deprivation of assets.
Case Study 2: Kavi
Kavi is 38, earns £40,000 working part-time and has sole custody of children aged seven and ten. Maintenance from Helen is irregular at about £5,000 a year. Family spending has reduced his £15,000 cash savings and £35,000 stocks and shares ISA. His parents plan to give him £1,000 a month from surplus income.
He has a £180,000 repayment mortgage on a £325,000 home, with single-life mortgage protection. His death-in-service benefit is three times salary. He contributes 4% to a workplace pension, matched by his employer, and the fund is wholly invested in UK equities. He has no pension nomination, will or LPAs.
Find the protection shortfall
The mortgage is covered and death-in-service would pay £120,000, but that may not support two children until independence.
Ask about the mortgage policy's term and basis, employer sick pay and scheme rules, household spending, childcare and education costs, the children's dependency period, Helen's maintenance agreement, proposed guardians, State benefits, health, smoking and an affordable premium.
Family income benefit could provide regular income until the children are independent. Level term assurance may cover a further lump-sum need, while income protection could use a deferred period aligned with employer sick pay. Critical illness cover could provide capital following diagnosis. Affordability matters, so rank the risks by the financial damage they would cause.
Check the existing mortgage policy before assuming it solves the problem. It may reduce the loan on death but provide nothing towards food, bills, childcare or education. The death-in-service benefit depends on Kavi remaining with his employer, so it should not be treated as permanent personal cover. Any recommendation needs a realistic term linked to the children's dependency.
Trusts, guardians and nominations
Kavi should make a will, appoint guardians and choose trustees to manage money for the children. Suitable protection policies may be written in trust so benefits reach the intended people promptly and can be managed for the children. The trust must suit the policy and his wishes.
He should also complete a pension expression of wish. It guides the trustees rather than binding them. LPAs are needed to deal with loss of capacity during his lifetime.
Keep the workplace pension if possible
Kavi pays 4% and his employer matches it. On £40,000, that is £1,600 a year from each of them. Opting out loses the employer contribution, tax relief, future growth and possibly linked benefits. Compare his take-home saving with the full value lost and check whether a temporary contribution reduction is possible. The parental support may remove the need to stop contributions.
The fund is wholly in UK equities. A long investment term and moderate-to-high attitude to risk support meaningful equity exposure, but not unnecessary concentration in one market and asset class.
Repair the cashflow before investing more
Calculate the monthly shortfall and set an emergency-fund target based on essential spending. We would use the £1,000 monthly gifts first to stop the withdrawals, then rebuild cash reserves, maintain the pension and employer match, and pay for priority protection. Invest only a genuine surplus, using his available ISA allowance where suitable.
The size of the emergency fund cannot be fixed without knowing his monthly spending and employment security. As the only resident parent, he may reasonably need more cash than someone with a second reliable household income. Money likely to be needed soon should not remain exposed to equity-market movements merely because it currently sits inside an ISA.
The parents say the gifts come from surplus income, making the normal expenditure out of income exemption important. The payments must form part of their normal expenditure, come from income and leave their usual standard of living intact. They should keep records of income, spending and intention. If the conditions are not met, the payments are potentially exempt transfers. Kavi should not rely on them indefinitely because they are promised only for the foreseeable future.
Capacity for loss matters
Kavi describes himself as moderate-to-high risk, but his capacity for loss is low. Part-time income, two dependants, irregular maintenance, a mortgage and falling liquid savings mean a market loss could force him to sell investments at a poor time. His long horizon supports some risk only after the immediate cash position is secure.
His ISA is in a global ethical equity fund. Review whether it reflects his ESG preferences, alongside diversification, charges, benchmark performance, volatility, screening and timescale. For shorter-term needs, a lower-risk holding may be more suitable.
Benefits and maintenance
Check Child Benefit and its tax treatment, Universal Credit and other means-tested help, childcare support, Statutory Sick Pay, Employment and Support Allowance, and whether the maintenance arrangement with Helen should be formalised. Do not assume entitlement. Explain what information is needed and how it affects the advice.
Questions worth practising
For Colin and Judith, practise retirement-income information, drawdown versus UFPLS and annuity, tax-efficient withdrawals, arranging the £200,000, investment suitability, the AIM shares and later-life planning.
For Kavi, practise protection information and recommendations, trusts and nominations, pension opt-out drawbacks, use of the monthly gifts, the tax treatment of gifts from income, fund suitability and low capacity for loss.
Write at least one full answer for each case study under time pressure. Reading notes will not show whether you can produce ten distinct points in seven minutes.
Exam technique
Follow the command word. "State" or "list" needs short, separate points. "Explain" needs the point and why it matters. "Recommend and justify" needs an action linked to a named aim or constraint. Show the working for calculations.
Use one point per line. For ten marks, aim for roughly ten distinct valid points rather than three long paragraphs.
Three hours for 150 marks allows about 72 seconds per mark. Move on when the time budget is spent. An unfinished paper is costly.
Use names and figures. Writing that Kavi's pension is tax-efficient is too vague. Saying he should retain his 4% contribution because opting out also loses the employer's £1,600 a year applies the advice to him.
Use the exam tax tables and check the date in each question, particularly for the AIM changes and unused pensions entering estates from April 2027.
What to do now
Learn the clients' facts and aims. Build an additional-information list for each household. For Colin and Judith, concentrate on pension withdrawals, care funding, investment suitability and AIM shares. For Kavi, concentrate on protection, the workplace pension, parental gifts and capacity for loss. Finish with timed answers, the CII familiarisation test and an equipment check before exam day.
Good luck on 6 October.
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