ARTICLE · 12 NOVEMBER 2021

Pension Death Benefits

Albert Goodman

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A common misconception with pensions is that they cease to exist on death. However, when you die, your personal pension scheme could provide benefits to your financial dependents...

United KingdomTax

What happens to my personal pension pot upon my death?

A common misconception with pensions is that they cease to exist on death. However, when you die, your personal pension scheme could provide benefits to your financial dependents or your estate. These are known as death benefits. Exactly what benefits your dependents or nominees will receive when you pass away will depend on the type of pension scheme that you have. However, this article is going to focus on the death benefits applicable to Money Purchase pensions.

A money purchase scheme (also known as defined contribution) is a scheme where the final value depends on the amount of contributions made by the member, their employer and any third party. the performance of the investments underlying the scheme.

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