AFAR2 Mock Paper 3 — Advanced Decumulation & Estate Planning
A challenging AFAR2 mock weaving LSA limits, mixed decumulation strategies, pre/post-75 death benefit tax, enhanced annuity underwriting and April 2027 IHT planning. Case studies on a wealthy retiree and a complex beneficiary situation.
- 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 3
This is mock paper 3 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 harder tier: it is deliberately pitched above the live exam, so passing it means you should clear the real thing with room to spare.
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 3 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 3 break down across 9 topic areas:
- Death benefits6 questions
- IHT from April 20276 questions
- Suitability5 questions
- Annuity vs drawdown3 questions
- Annuity features2 questions
- Enhanced annuity2 questions
- LSA & LSDBA2 questions
- PCLS2 questions
- UFPLS2 questions
Try two questions from AFAR2 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
LSA & LSDBA
Sir Anthony has used £260,000 of LSA. Remaining tax-free lump sum capacity is:
- A£28,275
- B£8,275
- C£813,100
- D£68,275
Reveal the answer
B is correct. £268,275 − £260,000 = £8,275 remaining LSA. Further PCLS above this is taxable.
PCLS
Sir Anthony crystallises his remaining £600,000 uncrystallised pot. Maximum tax-free PCLS is:
- A£141,725 taxable with £8,275 tax-free
- B£8,275
- C£600,000
- D£150,000
Reveal the answer
A is correct. 25% would be £150,000 but only £8,275 LSA remains. £8,275 tax-free; £141,725 of the PCLS element taxed as income.
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.