R04 How the new State Pension works: free practice questions
5 free questions on How the new State Pension works, part of learning outcome 7 (State schemes). Pick an answer to check it, or open the answer to see why each option is right or wrong.
Question 1 of 5
What is a qualifying year for State Pension purposes?
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The answer is B: A tax year with 52 weeks of NICs paid, treated as paid or credited
A qualifying year is a tax year with enough NICs paid, treated as paid or credited.
Why the other options are wrong
A
Working one day isn't enough.
C
It's a tax year and isn't tied to the upper earnings limit.
D
Income tax isn't the test.
Question 2 of 5
What is the weekly Class 3 NIC rate for 2026/27?
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The answer is A: £18.40
Class 3 is £18.40 a week for 2026/27. Voluntary Class 2 is £3.65.
Why the other options are wrong
B
£17.75 applied to earlier recent years.
C
That's the State Pension rate, not a contribution.
D
£3.65 is voluntary Class 2.
Question 3 of 5
Ana, who reached SPA in 2025, defers her £241.30 weekly pension for 18 weeks. By how much does it increase?
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The answer is D: 2%
Post-2016 deferral adds 1% for each nine weeks: 18 weeks = 2%.
Why the other options are wrong
A
One percent is for nine weeks only.
B
3.6% uses the pre-2016 rate of 1% per five weeks.
C
5.8% is for a full year.
Question 4 of 5
A person living outside the EEA in a country without a social security agreement ends a deferral. What extra pension do they get?
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The answer is A: Based on the higher of entitlement at SPA or when they moved abroad
Those living in such countries get extra pension based on the larger of their entitlement at SPA or when they moved abroad.
Why the other options are wrong
B
UK rules apply only in the EEA and agreement countries.
C
Some extra pension is paid.
D
The current year's full rate isn't used.
Question 5 of 5
Which contributions built Graduated Retirement Benefit and SERPS?
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The answer is A: Class 1 NICs paid by employees
GRB and SERPS came from employees' Class 1 NICs; S2P also used credits. None was available to the self-employed.
Why the other options are wrong
B
The self-employed couldn't build them.
C
Class 3 builds only basic or new State Pension.
D
Class 4 didn't build them.
Practise all 18 How the new State Pension works questions
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