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110+ Free QFA Pensions Practice Questions

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2026 Statistics

Key Facts: QFA Pensions Exam

100

MCQ Questions

LIA/IOB

2 hours

Exam Time

LIA/IOB

40%

Pass Mark

LIA/IOB

+3 / -1

Marking System

Negative marking

€360

Module Fee

LIA Ireland

€115,000

Earnings Cap

Revenue Commissioners

The QFA Pensions exam has 100 questions with a 2-hour time limit and costs €360. It is a core module for the QFA designation in Ireland. The exam covers occupational schemes, personal pensions, PRSAs, state pensions, tax relief, and post-retirement options (ARFs/annuities). It is administered online by LIA and IOB.

Sample QFA Pensions Practice Questions

Try these sample questions to test your QFA Pensions exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 110+ question experience with AI tutoring.

1What is the standard qualifying age for the State Pension (Contributory) in Ireland?
A.65
B.66
C.67
D.68
Explanation: The current qualifying age for the State Pension (Contributory) in Ireland is 66. Under previous proposals, this was slated to rise to 67 and 68, but those plans were deferred, keeping the eligibility age at 66. There is also an option since 2024 to defer drawing down the pension up to age 70 for a higher weekly rate.
2Which PRSI class is paid by self-employed individuals in Ireland and qualifies them for the State Pension (Contributory)?
A.Class A
B.Class B
C.Class S
D.Class H
Explanation: Class S PRSI contributions are paid by self-employed individuals and proprietary directors who earn €5,000 or more per year. Class S contributions provide coverage for the State Pension (Contributory), Widows/Widowers Pension, and Maternity/Paternity Benefit, but do not provide coverage for Jobseeker's Benefit (except in limited circumstances) or Occupational Injuries Benefit.
3What is the minimum number of paid PRSI contributions required to qualify for any State Pension (Contributory) in Ireland?
A.260 paid contributions
B.520 paid contributions
C.1,040 paid contributions
D.2,080 paid contributions
Explanation: To qualify for a State Pension (Contributory), a claimant must have a minimum of 520 paid weekly PRSI contributions (equivalent to 10 years of employment) since entering social insurance. Voluntary contributions cannot be used to meet this initial 520 paid contribution requirement.
4Under the Total Contributions Approach (TCA), how many PRSI contributions are required to receive the maximum State Pension (Contributory) rate?
A.1,040 contributions
B.1,560 contributions
C.2,080 contributions
D.2,600 contributions
Explanation: Under the Total Contributions Approach (TCA), which is the primary method for calculating pension rates, a claimant needs 2,080 weekly contributions (40 years of service) to receive the maximum rate. This total can include a mixture of paid contributions and credited contributions (such as Home Caring periods, up to a cap of 20 years).
5What is the maximum annual earnings limit taken into account for calculating tax relief on personal pension contributions in Ireland?
A.€80,000
B.€115,000
C.€150,000
D.€200,000
Explanation: Under current Revenue rules, the maximum amount of net relevant earnings taken into account for calculating tax relief on pension contributions is €115,000 per year. Any earnings above this cap do not qualify for tax relief on contributions, although the age-related percentage limits still apply up to this cap.
6Which of the following best describes the demographic trend in Ireland that drives the urgency for private pension funding?
A.A decreasing life expectancy among the retired population
B.An increasing dependency ratio of retirees relative to active workers
C.A decreasing average retirement age
D.An increase in the proportion of workers paying modified PRSI
Explanation: Ireland is experiencing an aging population due to falling birth rates and increasing life expectancy. This results in an increasing dependency ratio, meaning there are fewer active workers paying PRSI to support each pensioner drawing the State Pension, putting financial pressure on the pay-as-you-go state pension system.
7How is the State Pension (Non-Contributory) funded and assessed in Ireland?
A.Funded by Class A PRSI contributions and subject to a medical test
B.Funded from general taxation and subject to a means test
C.Funded by Class S PRSI contributions and subject to an employment record test
D.Funded by employer levies and available to all residents over 70 without assessment
Explanation: The State Pension (Non-Contributory) is a social assistance scheme funded from general taxation (not PRSI). It is available to residents aged 66 or over who do not qualify for the Contributory pension based on their PRSI record, and is subject to a strict means test of income, assets, and capital.
8A 28-year-old employee earns €50,000 per year. What is the maximum percentage of their earnings they can contribute to a pension and claim tax relief on?
A.15%
B.20%
C.25%
D.30%
Explanation: Under Irish tax rules, individuals aged under 30 can claim tax relief on pension contributions up to 15% of their net relevant earnings. This limit applies to the combined contributions made to RACs, PRSAs, and employee contributions to occupational pension schemes.
9Under the Home Caring Scheme, what is the maximum number of years spent caring for a child under 12 (or an incapacitated adult) that can be credited to calculate the State Pension (Contributory) under the Total Contributions Approach?
A.5 years (260 contributions)
B.10 years (520 contributions)
C.15 years (780 contributions)
D.20 years (1,040 contributions)
Explanation: The Home Caring Scheme (previously the Homemaker's Scheme) allows up to 20 years (1,040 contributions) spent caring full-time for children under 12, or ill/incapacitated persons over 12, to be counted as home caring periods. These periods are credited at the pension rate to help the claimant reach the 2,080 contributions needed for a full pension.
10An individual reaches age 66. Their PRSI record consists entirely of Class S contributions. Which state welfare benefit do they qualify to apply for?
A.State Pension (Contributory) only
B.State Pension (Contributory) and State Pension (Non-Contributory), depending on a means test
C.State Pension (Non-Contributory) only, because Class S does not qualify for Contributory pensions
D.Invalidity Pension only
Explanation: Class S contributions qualify a self-employed individual for the State Pension (Contributory) provided they meet the minimum 520 contributions requirement. If their PRSI contributions are insufficient to qualify for the Contributory pension, or qualify them for a low partial rate, they can also apply for the means-tested State Pension (Non-Contributory) to see if it yields a higher payment.

About the QFA Pensions Exam

The QFA Pensions module is a core requirement for the Qualified Financial Adviser (QFA) designation in Ireland. It covers the legal and regulatory framework of pension provision, the state pension system, occupational pension schemes, personal pensions (RACs), PRSAs, buy-out bonds, tax relief rules, and retirement options such as Approved Retirement Funds (ARFs) and annuities.

Assessment

100 multiple-choice questions (2-hour online exam)

Time Limit

2 hours

Passing Score

40% (Note: negative marking typically applies, where correct is +3 and incorrect is -1)

Exam Fee

€360 (LIA (Life Insurance Association) / IOB (Institute of Bankers))

QFA Pensions Exam Content Outline

15%

Retirement Planning Fundamentals

Need for retirement planning, demographic factors, social security integration, and consumer profiles.

15%

State Pensions and Social Welfare

State Pension (Contributory) and Non-Contributory, qualification criteria, PRSI contribution classes, and welfare benefits.

20%

Occupational Pension Schemes

DB vs DC schemes, trusteeship, trust law, disclosure requirements, and death-in-service structures.

15%

Personal Pension Plans (RACs)

Retirement Annuity Contracts (RACs), eligibility requirements, and contribution structures.

15%

Personal Retirement Savings Accounts (PRSAs)

Standard vs Non-Standard PRSAs, employer obligations, vesting, and PRSA tax rules.

20%

Pension Taxation and Retirement Options

Tax relief rules, age-related limits, net relevant earnings cap, Standard Fund Threshold, tax-free lump sums, ARFs, annuities, and Pension Adjustment Orders.

How to Pass the QFA Pensions Exam

What You Need to Know

  • Passing score: 40% (Note: negative marking typically applies, where correct is +3 and incorrect is -1)
  • Assessment: 100 multiple-choice questions (2-hour online exam)
  • Time limit: 2 hours
  • Exam fee: €360

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

QFA Pensions Study Tips from Top Performers

1Practice strategic exam taking: because of negative marking (+3/-1), only guess when you have eliminated at least two options. Leaving a question blank gives 0 marks, which is better than -1.
2Memorize the age-related contribution limits (15%, 20%, 25%, 30%, 35%, 40%) and the net relevant earnings cap of €115,000.
3Understand the difference in lump-sum options: occupational pensions allow up to 1.5 times salary based on service, or the 25% ARF-style lump sum. RACs and PRSAs only offer the 25% lump sum option.
4Study the PRSI classes: Class A is standard for private-sector employees, whereas Class S applies to self-employed individuals (who qualify for the State Pension Contributory but not the State Pension Non-Contributory safety net, unless income-tested).
5Pay attention to trust structures: remember that occupational pension schemes must be established under an irrevocable trust, separate from the employer's business assets, to protect members' funds.
6Be clear on the roles of the regulators: the Pensions Authority regulates the operation of schemes and PRSAs, while the Revenue Commissioners govern tax relief and benefit rules.

Frequently Asked Questions

What is the QFA Pensions exam?

The QFA Pensions exam is one of the six modules required to achieve the Qualified Financial Adviser (QFA) designation in Ireland. The module is administered by the LIA and the IOB. It tests a candidate's understanding of retirement planning, the Irish pension framework, occupational and personal pension structures, and the post-retirement options available under Irish tax law.

What is the passing score and format of the exam?

The passing score is 40%. The exam consists of 100 multiple-choice questions (MCQs) to be completed online in 2 hours. Note that QFA MCQ exams use negative marking: you get +3 marks for a correct answer, -1 mark for an incorrect answer, and 0 marks for an unanswered question. Therefore, candidates must manage their answers carefully.

What is the difference between a Standard and Non-Standard PRSA?

A Standard PRSA has charges capped at a maximum of 5% of contributions paid and an annual management charge (AMC) of 1% of the fund value. Non-Standard PRSAs do not have these charge caps and can invest in a wider range of assets. The core structures, tax relief, and retirement options are otherwise similar.

How are employer contributions to a PRSA taxed?

Since the Finance Act 2022 (effective 1 January 2023), employer contributions to an employee's PRSA are no longer treated as a Benefit-in-Kind (BIK) for the employee. They are fully tax-deductible for the employer and do not count toward the employee's personal age-related tax relief contribution limits, allowing for much greater funding flexibility.

What is the Standard Fund Threshold (SFT)?

The Standard Fund Threshold (SFT) is the lifetime limit on the total capital value of pension benefits that an individual can draw down. In Ireland, the SFT is currently set at €2,000,000. Any excess over the SFT upon retirement is subject to a upfront chargeable excess tax (CET) of 40%, in addition to standard income tax when the remaining funds are withdrawn.

Are AMRFs still required in Ireland?

No. Under the Finance Act 2021, Approved Minimum Retirement Funds (AMRFs) were abolished effective 1 January 2022. All existing AMRFs automatically converted into Approved Retirement Funds (ARFs) on that date. The requirement to secure a guaranteed lifetime income of €12,700 or set aside €63,500 in an AMRF has been removed.