Have a nice conversation about death!

Talking about wealth and death can be difficult

Most pensions provide some form of death benefit. Unless you have a very old-style pension, or have purchased a single life annuity, there will be options to leave your money to loved ones.

Pension Death Benefits

If you have a DB scheme or final salary pension, it may have restrictive death benefits. Typically, DB schemes only offer death benefits to dependent children (until they reach age 18) or a spouse/civil partner. If that doesn’t fit your wishes, review your pension arrangement and consider a private plan.

If you have a private pension, such as a SIPP or QROPS, you will have total flexibility and control to nominate loved ones to receive death benefits. You can do this using a simple death nomination form. You can change death benefits with a simple form, too.

For UK residents holding a private or DC pension, the fund value is available as a death benefit. This is tax-free when the member dies before they reach age 75. It is taxed upon the beneficiary (loved one receiving the pension-inheritance) as their own income if the member dies after 75 years.

Talk about inheritance & estate planning

While you’re in good health, have the conversation about death! It sounds stupid, but taking to someone who is poorly or at-risk is difficult. Having a conversation about death while you’re all healthy can be very positive.

If you have a SIPP or QROPS or other private pension, or company defined contribution plan, find out who is nominated in case you die. A simple form can be completed, where you choose loved ones and associated percentages to give them. If you can’t choose, you can leave your funds to charity. Without a nomination form, the pension trustees (who you’ve never met) will decide for you!


Have a nice conversation about death!

Pension Transfer Personality Quiz

Take our free pension transfer personality quiz to find out if a pension transfer is right for you!

1 / 10

How would you describe your investment or financial planning experience?

2 / 10

Where will you live in retirement?

3 / 10

What sort of taxpayer will you be in retirement?

4 / 10

How would you describe your relationship with money and finances?

5 / 10

Are your essential outgoings already covered by other retirement income?

6 / 10

Will anyone else be reliant on your pension for their financial security?

7 / 10

When you retire, will you need to withdraw a lump sum?

8 / 10

Do you require ad-hoc access to your pension funds in retirement?

9 / 10

How would your ideal retirement income be structured?

10 / 10

If you died, who would you want to benefit from your pension money?

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