Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

How to pass on your pension to your loved ones

If you have spent your lifetime saving for money for your retirement, you are likely to want your loved ones to inherit your pension after you die. This means that it is important that you carefully consider how you choose to access income from your pension when you reach retirement as your decision will impact how much of your pension you can pass onto your family.

Book a no-obligation meeting to discuss how to access your pension

Pension death benefits

If you have not yet accessed your pension, or you have made withdrawals through drawdown but left a portion invested, you can usually pass your pension to your chosen beneficiaries after your death.

Whether or not your beneficiaries pay tax when they receive your pension will depend on the age you die. If you die before the age of 75 then your beneficiaries can receive your pension free from tax. Your beneficiaries can also choose whether to receive the money as a lump sum or as monthly income.

Speak to a Financial Advisor

Nominate your pension beneficiaries

Pensions are not included in your estate and therefore are not included in your Will. At Four Wealth Management, we ask all our clients with a pension to fill out an Expression of Wish form to indicate who they would like to inherit their pension.

It is important to seek financial advice when making decisions about taking money from your pension as the decision could have a big impact on how much money you leave your family.

Book a no-obligation meeting now

Annuity death benefits

If you choose to use your pension pot to buy an annuity, you may not be able to pass any of this onto your family when you die. Some annuities such as a Joint Life Annuity will provide income for the spouse who lives the longest. However, the income cannot be passed to other generations.

Joint Life Annuities are often very expensive, a financial adviser at Four Wealth Management can get some quotes for you and let you know your options. They can also discuss alternatives with you.

Book a no-obligation meeting now

Passing on the State Pension

In some cases, your partner can continue to receive your State Pension after your death. If you are a man born before 1951 or a woman born before 1953 and you are receiving the Additional State Pension, then this can be inherited by your spouse if they have reached State Pension age.

Pass on more to your loved ones

The best way to check if you are accessing your pension in a way to maximise the amount of your pension that you can leave to your loved ones is to book in a no-obligation meeting with a financial adviser at Four Wealth Management. The meeting can be at your home address, at one of our offices or on zoom. The meeting will outline all your options and the tax implications of each one to help you make an informed decision.

Book a meeting now or call us on 0117 973 0500.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

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How to pass on your pension to your loved ones
FourWealth Management