Death Benefits

In the event of death prior to taking retirement benefits, and prior to age 75, funds up to the Lifetime Allowance may be paid as a tax-free lump sum. The lump sum benefit can be paid in accordance with your Expression of Wishes form, and this will normally be payable free of any Inheritance Tax.

If death occurs after age 75, then the pension funds may be paid out as a lump sum, as per your Expression of Wishes form, subject to an overall tax charge of 55%.

Alternatively, a dependents’ pension may be paid, albeit this will be subject to Income Tax.

Any fund accrued from contracting out of the State Second Pension (S2P) or the State Earnings Related Pension Scheme (SERPS) is known as ‘Protected Rights’ must be used to provide a 50% pension for your spouse or registered civil partner.