100+ Free IFoA SP4 Practice Questions
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Key Facts: IFoA SP4 Exam
3h 20m
Exam Duration
IFoA SP4 syllabus
£385
Standard Fee
IFoA fees page
200 hrs
Recommended Study
IFoA SP4 syllabus
7
Content Areas
SP4 syllabus
Written
Exam Format
IFoA SP4 syllabus
2026
Syllabus Year
IFoA curriculum
As of June 2026, the IFoA lists SP4 Pensions and Other Benefits as a 3 hour 20 minute online open-book written paper of short and long-answer questions, not multiple choice, with a standard exam fee of £385 and a recommended 200 study hours. The 2026 syllabus spans scheme design, funding methods and assumptions, investment and asset-liability management, risk management and de-risking (LDI, buy-in, buy-out, longevity swaps), accounting for pension costs under IAS 19, member options and UK regulation, with growing emphasis on risk sharing, defined contribution and public-sector schemes. The pass mark is set by the Board of Examiners each sitting. This free bank offers 100 MCQs as technical-knowledge prep.
Sample IFoA SP4 Practice Questions
Try these sample questions to test your IFoA SP4 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1In a defined benefit (DB) pension scheme, who bears the primary investment and longevity risk relating to the promised benefits?
2In a pure defined contribution (DC) arrangement, the member's retirement benefit at the point of retirement depends MOST directly on which combination of factors?
3A career-average revalued earnings (CARE) scheme differs from a final-salary scheme primarily because the pension is based on:
4Which arrangement is the clearest example of risk-sharing between the sponsor and members?
5When designing a new occupational pension scheme, which stakeholder objective is MOST associated with the employer rather than the members?
6A 'hybrid' pension scheme is best described as one that:
7Which of the following is typically classified as an 'other benefit' provided alongside a pension scheme rather than a core retirement pension?
8A scheme provides a pension of 1/60th of final pensionable salary for each year of service. A member retires after 30 years with final pensionable salary of £48,000. What is the annual pension before any commutation?
9A key advantage to the employer of moving new entrants from a DB scheme to a DC scheme is that it:
10Auto-enrolment, requiring eligible workers to be enrolled into a qualifying pension with minimum contributions, is primarily a policy tool to address:
About the IFoA SP4 Exam
IFoA SP4 Pensions and Other Benefits is a Specialist Principles Fellowship exam covering the financial management of pension schemes and other employee benefits, including scheme design, funding and valuation, investment and ALM, de-risking, IAS 19 accounting, member options and UK regulation.
Assessment
Online open-book written paper of short and long-answer questions
Time Limit
3 hours 20 minutes
Passing Score
Pass mark is set by the Board of Examiners each sitting; there is no fixed published percentage
Exam Fee
£385 standard fee (Institute and Faculty of Actuaries (IFoA))
IFoA SP4 Exam Content Outline
Pension Scheme Design and Other Benefits
Compare defined benefit, defined contribution, CARE, hybrid, CDC and risk-sharing designs, and the ancillary benefits such as death-in-service, ill-health and dependants' pensions provided alongside core retirement provision.
Funding, Valuation Methods and Assumptions
Calculate technical provisions and contribution rates using projected unit and attained age methods, set prudent discount-rate, inflation, salary and mortality assumptions, and design recovery plans for deficits.
Investment Strategy and ALM
Set liability-aware investment strategy using matching and growth assets, apply asset-liability modelling and stochastic projection, and plan de-risking journeys allowing for the employer covenant and scheme maturity.
Risk Management and De-risking
Manage interest-rate, inflation, investment, longevity and operational risk using LDI, interest-rate and inflation hedging, buy-ins, buy-outs, longevity swaps, consolidators and liability-management exercises.
Accounting for Pension Costs
Apply IAS 19 to measure the defined benefit obligation, net interest, current and past service cost, remeasurements in other comprehensive income and the asset ceiling, and explain why accounting and funding figures differ.
Member Options
Value commutation, transfer values, early and late retirement and drawdown choices, set option terms on a sound basis, and manage the anti-selection and take-up risks they create.
Regulation and Supervision
Explain the role of the Pensions Regulator, the DB funding code and low-dependency objective, the Pension Protection Fund and levy, preservation and revaluation, trustee duties and the actuarial control cycle.
How to Pass the IFoA SP4 Exam
What You Need to Know
- Passing score: Pass mark is set by the Board of Examiners each sitting; there is no fixed published percentage
- Assessment: Online open-book written paper of short and long-answer questions
- Time limit: 3 hours 20 minutes
- Exam fee: £385 standard fee
Keys to Passing
- Work through all 100 available questions
- Review every answer and explanation
- Track weak areas and revisit them
- Use our AI tutor for tough concepts
IFoA SP4 Study Tips from Top Performers
Frequently Asked Questions
How long is the IFoA SP4 exam?
SP4 is a 3 hour 20 minute online written paper, including extra time added since 2021 for downloading and printing. It uses short and long-answer questions rather than multiple choice, so strong time management is essential.
Is the IFoA SP4 exam multiple choice?
No. SP4 is an open-book written exam of short and long-answer questions that test application and judgement. This free bank uses 100 multiple-choice questions purely as technical-knowledge preparation around the same syllabus.
How much does the IFoA SP4 exam cost?
The standard IFoA exam fee for a Specialist Principles subject such as SP4 is £385 for 2026, with a reduced rate available to eligible candidates. Always check the IFoA fees page for the current amount before booking.
What does the SP4 syllabus cover?
SP4 covers pension scheme design, funding and valuation, investment and asset-liability management, risk management and de-risking, IAS 19 accounting, member options and UK regulation, with growing emphasis on risk sharing, defined contribution and public-sector schemes.
How many hours should I study for SP4?
The IFoA recommends around 200 hours of study for SP4. Most candidates spread this over several months alongside work, using the SP4 Core Reading, tuition material and recent past papers and examiners' reports.
What is the passing score for SP4?
The IFoA does not publish a fixed pass percentage. The Board of Examiners sets the pass mark for each sitting after marking, so the exact threshold varies, though candidates typically need around half of the available marks.