Retirement Planning information from Barclays Stockbrokers - What happens to my pension when I die?
What happens to my pension when I die?

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 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 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 are likely to qualify for Inheritance Tax (IHT) relief.
Any income (i.e. pension) payments to a surviving partner or dependants are subject to Income Tax.
 
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