If you are studying for the R04 exam you will know that the study text contains a lot of detailed information, and you may be wondering how you are going to manage to learn and remember all of it.

Our ‘Top Tips for Success’ aims to help you get the best out of your study time and help improve your chances of passing this exam at your first sitting. As approximately 40% of people sitting the exam fail at each sitting, it is important to have a good understanding of the exam structure and content early in your study schedule.

So, let’s start by looking at the R04 exam itself:

• The assessment is 50 questions
• 39 questions are multiple choice with a single response answer
• 11 questions are multiple choice but with a multiple response answer
• 1 hour is allowed
• The nominal pass mark is 65% (33 correct answers)
• Previous pass rates can be viewed here
• The recommended minimum number of study hours is 60 (but you may need significantly more if this is a completely new area for you)

1. It involves lots of complicated calculations
This is NOT true. It is probably overall one of the hardest exams, but in the time available you cannot be asked to carry out lengthy calculations. From past exam papers it shows that there are usually no more than 10 calculation questions.

2. There are only 50 questions so I will have plenty of time
This is definitely NOT true. You only have 1 hour to answer 39 multiple choice questions and 11 multi-response questions. That works out at 1 question every 72 seconds, and you will need to be quicker if you want to leave yourself time at the end to go back to any questions you were unsure of.

3. The questions cover the full syllabus equally
This is NOT true. Over half of the questions come from chapters 2, 6 ,7 & 8, along with over half of the multiple response questions.

The remaining 4 chapters have 50% of the questions spread over them, with no chapter having less than 4 questions, so you do need a good overall knowledge to pass the exam.

The most heavily examined chapters are:

Chapter 2 – HMRC rules : 10 single response questions

Chapter 4 – DB schemes : 7 single response questions

Chapter 6 – Pension income options: 9 single response and 4 multiple response questions

4. I will need to remember a lot of dates in relation to pension legislation

Not necessarily true. Focus on the most important:

• Pension simplification introduction
• Pension freedoms introduction
• Single-tier State pension introduction

5. HMRC taxation implications are heavily examined
There are only going to be around 10 taxation related questions. In the time available you cannot be examined on areas which are extremely complex or require lengthy calculations. Focus having an in-depth knowledge of the most important aspects.

During the R04 exam you will be under an element of time-pressure, so let’s look at some tips to help you make the most of your available study time to and move closer to success at your first attempt.

There is a heavy focus in the exam on DB pension schemes and there are also a few areas that show up regularly in past papers, making them a strong chance of being examined in every exam. These are:

• How lump sum death benefits can be paid
• Who can receive benefits from a deceased’s pension fund
• The difference between SIPPs and SASSs
• The roles of the trustees, administrator, actuary, auditor and investment manager of DB Schemes

Make sure you have a detailed understanding of these areas – you will never know everything and you can get 17 questions wrong and still pass.

The CII recommends a minimum of 60 hours of study to prepare for the R04 exam. You may find you need slightly less if you have prior knowledge of pensions, but the exam covers a lot of areas in addition to the specifics of different types of pension/pension products including:

• Background to pensions
• State Benefits
• Pension income options
• HMRC tax rules

Therefore you are still going to have to put in a significant amount of studying.

Several things are key to successful studying: Firstly it is important to have a plan - and stick to it. It is also important to introduce some variety and mix up your study techniques to help to keep it fresh and interesting. Study in short bursts, with breaks, and acknowledge your progress with rewards to keep you motivated.

Our “Learning to Learn” package contains valuable advice and useful strategies to help you discover how you learn best, and to maximise the effectiveness of your study time. 

It is important, however, to bear in mind, that it is impossible to test the full R04 syllabus in 1 hour. As well as learning the facts in each chapter, you need to understand the practical application of the rules, exemptions and reliefs and in various situations and scenarios.

• Use practice questions at the start, during, and at the end of each study period – this will help to identify areas of weakness to focus on going forward
• Become familiar with the information in the Tax Tables, but you do not need to memorise this information as you will be provided with it on the day
• Become familiar with the format and types of questions asked in the exam – complete the CII Exam Guide/Mock exams under exam conditions
• Keep practising with as many questions as you can. This not only helps to cement information in your memory, but also increases your confidence in how to tackle them effectively
• Read the question in full and very carefully. It will provide you with the information you need to choose your answer
• Become familiar with the calculator you intend to use in the exam and check that it meets the requirements of the CII

• Waste time learning lengthy calculations – there won’t be anything too complex in the exam as there is not enough time. If a calculation is involved, it will be relatively straightforward. For the more complex areas of taxation, make sure you have a good understanding of the overall process/concept so that you can answer ‘comprehension’ type questions on these topics
• Leave any question unanswered. Guess if you have to. In every multiple choice question there are normally 2 answers which you should be able to eliminate as wrong, leaving you with a 50:50 chance of being right and achieving the mark
• Spend more than 1 minute on each question. This will give you time to go back to any questions you were unsure of. If you can’t decide on the correct answer after 1 minute move on, you can always go back and make an educated guess

The assessment questions in the Wizard Learning “R04 Gap Analysis and Assessment Tool” provides a bank of 300 practice questions, with the similar mix and weightings for each Learning Outcome as in the R04 exam.

You can choose either a 25 question test (30 mins) or a 50 question test (60 mins) in either ‘revision style’ (where you will see the correct answer after each question is completed), or ‘exam style’ (where you will see your results at the end). The questions are selected at random for each test and will not repeat until all questions have been viewed.

Your end of test results shows not only your total marks but also the marks scored against each Learning Outcome. All incorrectly answered questions show the correct answer and explanation and a reference to the location in our online course.

You can find out more about the R05 Course, Gap Analysis and Assessment package in our directory.