Will My Pension Stop When I Die?

What will happen to my pension when I die? Will it just stop or can I pass it on to my family?

Question asked by Sarah Jones
Need Pension Advice?
Call us on 02084327333
First Name
Phone
Email

Answered by Neil Adams

How your pension will be treated on your death will depend largely on how you’ve opted to take your pension.

What happens to an annuity if I die?

If you have used your pension fund to buy an annuity, or income for life, this income may continue after your death provided you have elected for it to do so at the outset.

This means that when you bought your annuity, you must have opted for one which provides a guarantee that if you die early income will continue to be paid for a set period or is payable as a lump sum.

Your annuity income can also continue after you die if you’ve chosen a ‘joint life’ annuity. This means an income will be paid to a dependant – usually your partner or spouse – if they outlive you.

If you haven’t chosen one of these options, your annuity income will usually stop when you die.

What happens to pension drawdown when I die?

If you are drawing your retirement income from your pension fund, known as pension drawdown, any remaining funds will be payable to your nominated beneficiaries.

This will usually be free from inheritance tax providing the cash remains invested in the pension or in drawdown at the date of your death, and if you die before the age of 75 your beneficiaries won’t have to pay any income tax on the money, either.

It is important that you review these arrangements in light of the new pension rules. A professional pension adviser will be able to provide advice regarding these arrangements. If you would like any help in this area please contact us to speak with one of our financial advisers.

income drawdown
 
'joint life' annuity
 
pension fund
 
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 was told that my pension was ‘frozen’. Am I able to access this money at all and...
 
I am heading towards retirement and trying to squirrel away as much as I can. I wanted to know whether...
 
I like the idea of being able to leave my unspent pension to my son and two daughters and my five grandchildren...
 
I know with the changes in the budget introducing pension freedom we are now able to access are pension...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Kevin Paul
05/09/2017

Excellent service renewing our medical insurance, professional advice, good rates found and excellent professional after service, highly recommended.

Max Edgar
09/09/2017

Nadeem was brilliant. He was very patient and worked very well with me to come up with the best solution possible for my budget. Perfect solution. Thank you very much.

Aidan Smyth
11/09/2017

Dealt with me promptly and provided me with the most cost-effective option consistent with my requirements. Very pleased and thank you.

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.93 / 5 Average
1,222 Reviews
A
Overall Rating
Really, really helpful! Stopped me from signing up with an unhelpful company, and did basically all of the legwork for me in signing up with the right one. I can't have been the most helpful client as I'm 19 and only just started looking into it last week, but he took all the questions in stride! Put up with me turning to ask my dad questions every 2 minutes as well. I was helped by 2 workers; Sam and Nick. Thank you very much to both!
L Finch
Overall Rating
Good communication and follow ups. Friendly. A thorough research for my insurance needs.
M
Overall Rating

Sam Barr-Worsfold was very helpful and provided excellent customer service. Sam discovered I was paying too much premium for my current cover. Sam recommended and helped moved to a new cover with lower premium that provided the level of cover (terms required stated in the provider's policy) I wanted. I recommend highly recommend Sam and Drewberry Insurance. Thank you Sam.
Anonymous
Overall Rating
Thorough, knowledgeable and great communication
Anonymous
Overall Rating
Went through each policy in detail and made sure I was getting the correct one for me