Think you’re on top of your pension planning and are ready for retirement? Whether you’re counting down the years or are only just starting to take it seriously, our quiz, which is split into four different sections, is designed to test your knowledge and help you spot any gaps.
Give yourself one point for each answer you get correct, but don’t beat yourself up if you don’t score highly. Plenty of people struggle to get to grips with pensions, with new research from Aviva revealing a worrying gap between perceived and actual pension knowledge. The insurer found that one in five (20%) don’t know what type of pension they have and only just over one in six (17%) got the current State Pension age correct.
Find out if you’re retirement-ready by completing the quiz now, and if you get stuck, beneath each section, there are plenty of helpful resources which can help you boost your pension knowledge.
If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial advisor. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,000 reviews on VouchedFor, the review site for financial advisors.
Section 1: State Pension Basics
1. What is the current State Pension age in the UK (as of 2025)?
A) 60
B) 65
C) 66
D) 67
2. How many qualifying years of National Insurance do you need to receive the full new State Pension?
A) 10 years
B) 20 years
C) 30 years
D) 35 years
3. If you delay taking your State Pension, what happens?
A) You lose it
B) It gets frozen
C) It increases
D) Nothing changes
4. Which of these could reduce your eventual State Pension amount?
A) Earning over £100,000
B) Living abroad
C) Not having enough National Insurance contributions
D) Taking a tax-free lump sum from a private pension
5. What’s the best way to check how much State Pension you’re on track to receive?
A) Ask your employer
B) Call HMRC
C) Use the Government’s online State Pension forecast
D) Wait until you retire
Answer key
1: C | 2: D | 3: C | 4: C | 5: C
Section 2: Accessing your pension and tax rules
6. At what age can you usually start taking money out of a private or workplace pension?
A) 50
B) 57
C) 55
D) 60
7. True or False: You can take 25% of your pension pot tax-free
A) True
B) False
8. If your pension pot is £300,000 at retirement, can you take it all out at once?
A) Yes, with no tax
B) Yes, but 75% is taxable as income
C) Only if you’re over 70
D) No, you must buy an annuity
9. What happens to your pension when you die?
A) It is automatically paid out as a lump sum to the government
B) It stops immediately and any remaining funds are lost
C) It may be passed on to your beneficiaries, depending on the type of pension and your age at death
D) It is transferred back to your employer
Answer key
6: C | 7: A | 8: B | 9: C
Section 3: Private and workplace pensions
10. What does ‘auto-enrolment’ mean in the context of a workplace pension?
A) You have to ask to join your company pension scheme
B) Your employer automatically enrols you unless you opt out
C) It only applies if you’re over 60
D) It’s a pension for government employees only
11. Which of these is a common type of workplace pension scheme?
A) Stocks and Shares ISA
B) Defined contribution
C) National Insurance
D) Lifetime ISA
12. What is “pension consolidation”?
A) Combining multiple pensions into one pot
B) Merging your pension with your partner’s
C) Cashing in your pension early
D) Changing your pension provider
13. What’s a common reason people consolidate their pensions?
A) To avoid paying income tax
B) To make management easier and reduce fees
C) To access funds before retirement age
D) To increase their National Insurance contributions
14. What is an annuity?
A) A type of pension scheme offered to public sector workers
B) A one-off bonus from your pension provider
C) A product that pays a guaranteed income for life (or fixed period)
D) A tax on your pension withdrawals
Answer key
10: B | 11: B | 12: A | 13: B | 14: C
Section 4: Pension planning and investment
15. What happens if you withdraw too much from your pension pot early on?
A) You’re rewarded with a bonus
B) It could run out sooner than expected
C) It has no effect on your long-term income
D) The government tops it back up
16. Which of the following is a pension drawdown option?
A) Buying a house with your pension
B) Leaving it invested and taking income as needed
C) Giving it all to a relative
D) Transferring it to an ISA
17. What’s the main benefit of using a pension rather than a savings account for retirement?
A) Pensions are insured by the government
B) Pension contributions benefit from tax relief
C) Pensions always grow faster than savings
D) You can access pensions at any age
18. If your pension pot is invested, what should you regularly check as you near retirement?
A) Whether it’s in a lower-risk fund
B) If your pension is held in cash
C) Whether it’s gone up or down every day
D) The exchange rate
19. What is lifestyling in pension investing?
A) Using your pension to pay for lifestyle expenses
B) Switching from high-risk to lower-risk investments as you approach retirement
C) Choosing funds based on personal interests
D) Taking out your pension to travel
20. How can you increase your private/workplace pension pot in your 50s?
A) Ask for a pay rise
B) Take out a loan
C) Increase your contribution rate
D) Open a new ISA
Answer key
15: B | 16: B | 17: B | 18: A | 19: B | 20: C
Results:
16–20 points: Congratulations! You’re a pension pro
You’ve got a strong grasp on both the basics and the more complex elements of pension planning. However, there’s always room for improvement, even if you know your stuff, and it’s still worth regularly checking things like where your pension is invested and how much you’re paying in charges.
10–15 points: Getting there…
You’re doing well, but there’s still time to boost your retirement knowledge and ensure that your pension savings are working as hard as they possibly can for you. A quick pension review could go a long way.
0–9 points: Room for improvement
If you’ve found your pension knowledge is lacking, please don’t worry – most people are in the same boat. Now’s a great time to learn more and take control of your financial future by getting to grips with the pension basics.
If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial advisor. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,000 reviews on VouchedFor, the review site for financial advisors.
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