AFAR2 Mock Paper 1 — Decumulation Foundations
An introductory AFAR2 mock on PCLS, UFPLS, annuities vs drawdown, death benefits and the April 2027 IHT changes. Two case studies on a first-time retiree and a widow reviewing options.
- Questions
- 30
- Minutes
- 45
- Pass (70%)
- 21/30
Sit it timed
The timer starts when you press the button. You can still finish after it runs out — it is there to mimic exam pressure, not to lock you out.
Free preview: the first 5 of 30 questions, with a timer to match. Unlock the full paper
Answer options are shuffled on every attempt. Your progress is saved as you go, so a refresh won't lose it.
About AFAR2 Mock Paper 1
This is mock paper 1 of 3 for AFAR2, the Retirement planning — Unit 2 unit of CeMAP. The 3 papers in this unit run easier → harder so you can build up to exam standard rather than being thrown in at the deep end. This one sits in the easier tier: the wording is clean and the wrong answers are less subtle than the ones the examiner writes, so it is the right place to find out what you actually know.
Every question carries a written explanation, so a wrong answer tells you which rule you have misread instead of just costing you a mark. Questions are original, written against the 2025/26 five-unit CeMAP syllabus, and cover the material the way the examiner tests it — precise recall where recall is tested, and judgement where the paper wants judgement.
Format, timing and pass mark
AFAR2 Mock Paper 1 follows the live AFAR2 format: 20 standalone questions + 2 case studies × 5 linked questions, in 45 minutes — about 90 seconds a question. Pass mark 21/30 (70%), as in the real assessment. There is no negative marking, so answer everything. 2 case studies carry linked questions: read each scenario once, carefully, before answering any part of it.
What this paper tests
The 30 questions in AFAR2 Mock Paper 1 break down across 8 topic areas:
- Annuity vs drawdown6 questions
- Death benefits5 questions
- PCLS5 questions
- Suitability5 questions
- Annuity features3 questions
- IHT from April 20273 questions
- UFPLS2 questions
- Enhanced annuity1 question
Try two questions from AFAR2 Mock Paper 1
These come from the free preview of this paper. Answer them, then reveal the explanation.
PCLS
Pension Commencement Lump Sum (PCLS) is normally:
- ATaxed as income at 40%
- BOnly available from DB schemes
- C100% of the pension pot, always tax-free
- DUp to 25% of the pot, tax-free subject to the lump sum allowance of £268,275
Reveal the answer
D is correct. PCLS is typically 25% of the crystallised amount, tax-free up to the client's remaining LSA (£268,275 lifetime cap from 2024/25 onwards).
UFPLS
Uncrystallised Funds Pension Lump Sum (UFPLS) means:
- AOnly available after age 75
- BEach payment is 25% tax-free and 75% taxed as pension income, taken directly from uncrystallised funds
- CThe entire payment is tax-free
- DA DB scheme transfer
Reveal the answer
B is correct. UFPLS splits each withdrawal: 25% tax-free (using LSA) and 75% taxable as income. It triggers the MPAA when taken.
Scored under 70%? Revise these next
A near miss is almost always a calculation you cannot do under time pressure, a definition you half-know, or a rule you have never read in the examiner's words. Start with the topic areas above where you dropped marks, then:
- →Drill the calculations on the CeMAP formula sheet — LTV, income multiples, SDLT, APRC, ERCs and rental cover, each worked through.
- →Nail the terminology in the CeMAP glossary — a surprising share of wrong answers are a term you nearly knew.
- →Re-read the syllabus coverage on the AFAR2 exam guide, then sit the next paper in the ramp.
The other AFAR2 mock papers
3 timed mocks for this unit, running easier → harder. Sitting the whole ramp is what moves a borderline score to a comfortable pass.