CII R0 Diploma · R04
CII R04 Exam Guide — Pensions and Retirement Planning (2025/26)
R04 covers the entire UK pensions landscape — from auto-enrolment to death benefit nominations. Since the abolition of the Lifetime Allowance in April 2024, you must be fluent with the new Lump Sum Allowance (£268,275) and Lump Sum & Death Benefit Allowance (£1,073,100). Pension rules change frequently, so always study the most recent material and ignore older study texts that still reference the LTA.
Format
50 questions — MCQs and multi-response
Duration
1 hour
Pass mark
65%
Study hours
50–70 hours
R04 syllabus breakdown
| Syllabus area | Weight | What it covers |
|---|---|---|
| Pension scheme types | ~15% | DC, DB, SIPP, SSAS, stakeholder, GPP and the State Pension. |
| Contributions and Annual Allowance | ~20% | AA, tapered AA, MPAA, carry forward. |
| Benefits and LSA/LSDBA | ~20% | PCLS, LSA £268,275, LSDBA £1,073,100, transitional protections. |
| At-retirement options | ~20% | Annuities, FAD, UFPLS and small pots rules. |
| Death benefits | ~15% | Pre/post 75 taxation, beneficiary drawdown, succession planning. |
| Auto-enrolment and transfers | ~10% | Qualifying earnings, opt-out, DB to DC transfers, advice requirement. |
Recommended R04 study plan
- 1
Week 1–2
Scheme types and the State Pension. Build a comparison table for DC vs DB.
- 2
Week 3
Annual Allowance, tapering and carry forward. Practise 20 AA calculations.
- 3
Week 4
LSA, LSDBA and transitional protections. Focus on post-April 2024 rules only.
- 4
Week 5
Drawdown, annuities and UFPLS — taxation and suitability.
- 5
Week 6
Death benefits pre and post age 75. Memorise beneficiary options.
- 6
Week 7
Two full timed mocks and targeted revision.
- 7
Week 8
Final mock plus a recap of any rule that changed in the last Budget.
R04 exam tips
- Memorise LSA £268,275 and LSDBA £1,073,100 — they appear in multiple questions.
- For tapered AA, threshold income £200k and adjusted income £260k — taper £1 per £2 down to £10k AA.
- Death pre-75 = generally tax-free; post-75 = taxed at marginal rate of recipient.
- Watch for MPAA traps — once triggered, AA for DC drops to £10,000.
Common R04 mistakes
- Still applying old Lifetime Allowance rules — the LTA is abolished from 6 April 2024.
- Confusing threshold income with adjusted income in tapered AA questions.
- Forgetting the 2-year window for tax-free lump sum death benefits.
- Missing that DB-to-DC transfers over £30,000 require regulated advice.
Key topics covered in R04
Related R04 topics across the R0 syllabus
CII R0 modules overlap heavily. Use these cross-links to follow a topic from one paper into the next — exactly how the CII tests them in practice.
Income tax and the personal allowance taper (R03)
R04 tapered Annual Allowance uses R03 income tax definitions of threshold and adjusted income.
Drawdown investment strategy (R02)
R02 portfolio construction underpins how R04 drawdown funds are invested for sustainable income.
Pension death benefits and IHT interaction (R03)
R03 IHT rules and R04 death-benefit nominations together drive intergenerational planning.
Pension recommendations in case studies (R06)
R06 always tests applied R04 pension planning across both case studies.
R04 exam FAQs
Has the Lifetime Allowance been replaced for R04?
Yes. From 6 April 2024 the LTA is abolished and replaced by the Lump Sum Allowance (£268,275) and Lump Sum & Death Benefit Allowance (£1,073,100). R04 only tests the new regime.
How is the Annual Allowance tapered for high earners?
For 2025/26, threshold income above £200,000 and adjusted income above £260,000 triggers a £1 reduction in the £60,000 AA for every £2 of adjusted income, down to a minimum of £10,000.