PROVIDING FOR YOUR LOVED ONES AFTER YOUR DEATH

If you’ve spent a lifetime saving for retirement, you’d probably like any remaining
money to go to a loved one after your death. But whether pension benefits are
payable to a beneficiary, and how they’ll receive them, is dependent on the type of
pension you’ve chosen and how you’ve accessed it in your retirement. Thanks to
changes in the way that pensions are taxed, more of your fund can survive your
death and provide an income or nest egg for your loved ones to enjoy, long after you
are gone. Since April 2015 it has been easier to safeguard your pension for your
heirs, but it’s important to make sure you’re keeping up with the changes.

The way that you decide to take your pension will affect what you can do with it when
you pass away. And while it’s not always easy to talk about, the way you eventually
pass on your pension has the biggest impact on other people, so it could help if you
talk to your spouse, partner, children or other people close to you when you’re
deciding how you take your pension savings.

PENSION DEATH BENEFITS

If you have not yet accessed your pension, or you have made withdrawals from your
pension but left some money invested, it can usually be passed to a beneficiary after
your death. The specifics, for example, in what form they will receive these death
benefits and whether they will pay tax, will depend on your individual circumstances
(such as your age) and the scheme rules.
You should always obtain professional financial advice to assess your specific
situation. But if your pension scheme allows you to choose a beneficiary, ensure you
have named the person you intend to leave your money to.

ANNUITY DEATH BENEFITS

If you have used your pension savings already to purchase an annuity, this can only
be passed on to a beneficiary in certain cases, which must be established when the
annuity is purchased. For your annuity income to go to a loved one after your death
you must choose either an annuity with a guarantee period or a joint life annuity

STATE PENSION INHERITANCE

In certain circumstances, your partner can continue to receive your State Pension
after your death. For example, if you’re a man born before 1951 or a woman born
before 1953, and you’re receiving the Additional State Pension, this can be inherited
by your partner (husband, wife or registered civil partner) after your death if they
have reached the State Pension age.

If in any doubt good independent financial advice can put your mind at rest. Contact Us today if you need any questions answering.