R05 State pensions: free practice questions

1. Question 1 of 5

   How many qualifying years of NICs are needed for the full new State Pension, and for any pension at all?

   Option A: 40 years for full, 15 years for anyOption B: 35 years for full, 10 years for anyOption C: 30 years for full, 1 year for anyOption D: 44 years for full, 20 years for any

   Show answer

   The answer is B: 35 years for full, 10 years for any

   A full new State Pension needs 35 qualifying years, paid or credited, and at least 10 years are needed to receive any pension.

   Why the other options are wrong

   A

   40 and 15 years overstate both requirements.

   C

   30 and 1 years are the wrong figures; it's 35 for the full pension and 10 for any.

   D

   44 and 20 years are well above the actual requirements.

2. Question 2 of 5

   Which statement about the new State Pension is INCORRECT?

   Option A: Individuals can contract out of part of itOption B: It is based on the individual's own NIC recordOption C: It is taxableOption D: It is not means-tested

   Show answer

   The answer is A: Individuals can contract out of part of it

   It is not possible to contract out of the new State Pension. It is taxable, not means-tested and based on the individual's own NIC record.

   Why the other options are wrong

   B

   This is true: it's based on the individual's own NIC record.

   C

   This is true: the new State Pension is taxable.

   D

   This is true: it isn't means-tested.

3. Question 3 of 5

   Hal and Ivy both reached State Pension age after 6 April 2016. Hal dies. What State Pension entitlement may pass to Ivy?

   Option A: His entire NI record to replace her ownOption B: Nothing, other than 50% of any protected paymentOption C: Half of his new State Pension, for lifeOption D: His full new State Pension, added to her own

   Show answer

   The answer is B: Nothing, other than 50% of any protected payment

   The new State Pension is an individual scheme with no specific bereavement benefits. Where both reached SPA after 6 April 2016, only 50% of any protected payment can be inherited.

   Why the other options are wrong

   A

   A survivor can't take over the deceased's NI record under the new State Pension.

   C

   There's no general half share; only 50% of any protected payment can be inherited.

   D

   The new State Pension is individual; a survivor can't inherit it in full.

4. Question 4 of 5

   What is the purpose of the Guarantee Credit element of Pension Credit?

   Option A: To replace the new State Pension for people with gaps in their recordOption B: To provide a minimum level of income for those over the qualifying ageOption C: To reward people who saved for their own retirement incomeOption D: To pay care home fees

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   The answer is B: To provide a minimum level of income for those over the qualifying age

   Guarantee Credit tops up income to a minimum level for those over the qualifying age, which rises with SPA. Savings Credit is a legacy element for those who reached 65 before 6 April 2016.

   Why the other options are wrong

   A

   Guarantee Credit tops up income; it doesn't replace the State Pension.

   C

   Rewarding savers was the aim of Savings Credit, a legacy element.

   D

   It's a minimum income guarantee, not a care fee payment.

5. Question 5 of 5

   Xander reaches State Pension age with 8 qualifying years of NICs and no protected payment. What new State Pension will he receive?

   Option A: The legacy basic State Pension of £184.90 a weekOption B: A pension based on his wife's NIC recordOption C: None, as at least ten qualifying years are neededOption D: The full rate of £241.30 a week

   Show answer

   The answer is C: None, as at least ten qualifying years are needed

   A full new State Pension needs 35 qualifying years and any pension at all needs at least ten. Entitlement is based on the individual's own record, so 8 years gives nothing.

   Why the other options are wrong

   A

   The legacy basic State Pension applies to people who reached SPA before 6 April 2016.

   B

   The new State Pension is based on his own NIC record, not his wife's.

   D

   The full rate needs 35 qualifying years; he has 8.

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