Diploma for Financial Advisers
Diploma in Accounting
Member of London Institute of Banking and Finance

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When you pass away, what happens to your private pension depends on the type you have:

1. Defined Contribution Pension

If you die before taking your pension, your loved ones can receive the full value, either as a lump sum or regular payments. If you’ve started withdrawing, any remaining balance can go to your beneficiaries, with tax depending on your age at death.

2. Defined Benefit Pension

This pension provides a guaranteed income for life. After you die, payments may stop or continue partially to your spouse or dependants, depending on the scheme.

3. Nomination of Beneficiaries

Tell your provider who should receive your pension when you die. They will usually follow your wishes.

Tax Considerations

If you die before 75, your beneficiaries can receive your pension tax-free. After 75, they may pay income tax on it.

Bottom Line

Keep your beneficiary details up to date to ensure your pension goes to the right people.