Can I Give My Pension to My Children?

Unfortunately my passing is inevitable and I have quite a big pension fund I’m unlikely to use completely. Can I pass my remaining pension pot on to my children? What are the tax implications if my children inherit my pension?

Question asked by Mark Rowlan
Are You Pension Happy?
Call us on 02084327334
I know how much my pension is worth
I know how much my pension costs
I have clear financial goals for my retirement

Answered by Andrew Jenkinson

New pension freedom legislation introduced in April 2015 has made it much easier to pass on your pension to your beneficiaries when you die. If you die before you reach the age of 75, then even if you have started to draw on it, you can pass on whatever left in your pension tax-free. Your children can then use it to give them a tax-free income or a tax-free lump sum.

Passing away after 75

If you die after the age of 75, then your children can still receive your pension, but any income they take from it will be taxed as income at their highest marginal rate of tax. They won’t have to pay any inheritance tax in most circumstances, but this is not guaranteed so seeking advice is always recommended.

Having bought an annuity…

If you’ve used your pension to buy an annuity, or income for life, then your income usually dies when you do, unless you have bought a joint life or guaranteed period annuity in which case an income will continue to be paid after your death.

If you would like to speak to one of our specialist pension advisors regarding your specific situation please get in touch.

pension tax relief
inheritance tax planning
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

I’m looking to invest for my retirement and want to know how to go about starting a new pension....
I have an old pension with a former employer – should I consider transferring it to my...
I’m now working overseas but plan to return to the UK at some point in the future. Am I still able...
I want to make sure that I get the most out of my pension, how can I compare different plans to help...
Need Help? Live chat now and get an instant answer from our Experts...


Our Latest Reviews
Matthew Draper

Excellent service at convenient times of the day specified by me. All product options were clearly outlined and I am very pleased.

Paul Devine

First class service. Helped me through the process from start to finish. Egle and Francis were very professional and talked me though all my options. Once the policies were set up, the after care after was also first class. Highly recommend. 5 stars all day long.

Josip Marjanovich

Victoria was very helpful about selection of suitable insurance. She always answered all questions in a timely manner.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
4.93 / 5 Average
652 Reviews
Verified Buyer
Overall Rating
The whole process was a pleasure. Drewberry we're easy to deal with, polite, knowledgeable and helpful
Verified Buyer
Overall Rating
Very good, clear service would recommend to friends and family
Overall Rating
Sam Carr provided an efficient and professional service.
Verified Buyer
Overall Rating
Sam Carr provided a professional but enthusiastic service and helped make the whole process very straight forward. Goodness knows I have been through enough application forms recently. My insurance product was never going to be easy to find and I had been rejected on a number of other occasions through others ironically due to well managed common health conditions. I identified Drewberry in a last and disappointing trawl on th web to find someone that actually wanted to take on a difficult case like me. Some brokers wouldn't even consider me. When we applied for my first choice product Sam wasn't at all deterred by the long wait for my GP report or the final rejection that came back from the insurer, sadly I have become used to it. Within a day he had lined up the second choice and to my surprise he had hit the nail on the head and introduced me to the correct insurer and terms for my needs whilst nogotiating an excellent premium. I am extremely satisfied with what Sam has achieved for me and I would have no hesitation in recommending either him or Drewberry to friends, family and and business contacts. In the future, Drewberry will be my first point of contact. Many thanks!
Overall Rating
Tailored to my need and the staff gave very good service