🏛️ State Pension
The UK State Pension usually stops when the person dies. However, in some cases, a surviving spouse or civil partner may be able to inherit part of it.
You may be eligible if:
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You were married or in a civil partnership
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Your partner reached State Pension age before 6 April 2016
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They had Additional State Pension or a protected payment
👉 Learn more: GOV.UK – State Pension after death
🏢 Workplace and Personal Pensions
These pensions often include death benefits, which can be paid to your nominated beneficiaries.
What might happen:
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A lump sum payment (often tax-free if under age 75)
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A pension income for a spouse or dependent
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Transfer of the remaining pension pot
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Key actions:
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Make sure you’ve filled out a nomination or expression of wish form
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Keep your provider updated with any changes (e.g. marriage, divorce)
💡 If the person was under 75, most death benefits are tax-free. If over 75, beneficiaries may pay income tax on what they receive.
📋 Defined Benefit (Final Salary) Pensions
These may offer:
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A survivor’s pension (usually a percentage of the original pension)
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A lump sum if the person died before retirement
Each scheme has its own rules, so it’s important to check with the provider.
🧾 Tax and Inheritance
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Pension pots are not usually part of your estate, so they’re not subject to inheritance tax
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Beneficiaries may pay income tax depending on the age of the deceased and how the pension is paid
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🧠 Final Thoughts
Thinking about death is never easy, but understanding how pensions work can help you:
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Make informed decisions
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Protect your loved ones
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Ensure your wishes are respected
If you're unsure, reach out to us here at clear Pensions
Disclaimer:
This guide is provided for general information and guidance purposes only. It is not intended to constitute financial, tax, or legal advice. Individuals should seek professional advice tailored to their personal circumstances before making any financial decisions.
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