Death provisions
Click here to find out about the changes to SIPP regulations.
What happens to my pension when I die?
The provisions for what happens to your pension when you die are complex and vary depending on:
- The pension plan held;
- Your age at death;
- Whether you had already drawn any of your retirement benefits;
- Whether the plan is written under a trust / by deed poll, or some other means;
- Whether you have a spouse / civil partner or any other dependants;
- Whether you have completed a Nomination of Beneficiaries/Expression of Wishes form.
In most instances, your spouse / civil partner and/or dependants may be entitled to a lump sum payment and/or an income (i.e. a pension) from your pension fund.
Tax
Lump sum death benefits are usually tax-free, as they qualify for
, although this isn’t always the case.
Any income (i.e. pension) payments to a surviving spouse/civil partner or are subject to Income Tax.
Find out more about:
- Individual Pension Plans – Death before retirement and before age 75
- Individual Pension Plans – Death after retirement (and before retirement but after age 75)
- Defined Benefit/Final Salary Plans – Death in service
- Defined Benefit/Final Salary Plans – Deferred benefits
- Defined Benefit/Final Salary Plans – Death after retirement
 Retirement planning |
