What happens to my pension should I die?

jonnyenglish

Good evening folks,

Not the nicest of topics I know but I just wondered if anyone could advise me as a single man with no dependents what would happen to my pension contributions should I die:
(i) before I retire
(ii) after I retire

The only information I can find about what happens generally to pension contributions after the contributor passes away either before or after their due retirement date is that they can be left to the contributor's spouse, civil partner or children. As I have none of these I would hate to think that all my contributions would go into the treasury's coffers when I meet my maker!

Can the contributors be paid into my estate so that they can be passed to whoever I see fit to leave them?

Any advice would be appreciated!

Jonny

Rolandtheroadie

The way mines works is if i'm still working, the benefits go to whoever the pension trustees see fit to give it to (I can say who I want it to go to but ultimately they decide). This would normally be next of kin (parents? siblings,aunt, uncle, cousins). Failing that, it'll stay where it is. (mines in my companys scheme.)
As you've no dependants, if you've retired, thats it. pension would stop, no more payments to anybody.

jonnyenglish

As you've no dependants, if you've retired, thats it. pension would stop, no more payments to anybody.[/quote]

That's what worries me Scotsman, that the whole pension pot would be lost. I wondered if there's a way I could ensure it could go to my parents or siblings?

EdInvestor

You can name anyone you want as a beneficiary.Trustees would only intervene with a different decision if you had dependants (eg wife and children) but were ignoring them.

After retirement it will depend on the rules of the scheme if an occupational pension.With a private scheme, at retirement you either buy an annuity - in which case you lose the capital - or put your fund into "income drawdown" and take an income from the invested fund.

Under drawdown, if you die before age 75, your nominated beneficiaries can take the fund in cash after a 35% tax charge.After 75 you can continue with a form of drawdown but on death your fund will be heavily taxed unless you leave it to charity.

Pensions don't get included in your estate and aren't subject to inheritance tax.