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What happens to pension contributions if I die?
Santiago1_2
Posts: 62 Forumite
If this has been discussed elsewhere in this forum please let me know.
What would happen to my pension contributions if I die before I reach pension age? Would this differ if the pension is a personal one held with an insurance company or a self-select SIPP?
Many thanks
What would happen to my pension contributions if I die before I reach pension age? Would this differ if the pension is a personal one held with an insurance company or a self-select SIPP?
Many thanks
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Comments
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Generally if your defined contribution pension is uncrystallised it gets passed to a nominated beneficiary free of tax.If this has been discussed elsewhere in this forum please let me know.
What would happen to my pension contributions if I die before I reach pension age? Would this differ if the pension is a personal one held with an insurance company or a self-select SIPP?
Many thanksI am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Generally if your defined contribution pension is uncrystallised it gets passed to a nominated beneficiary free of tax.
Thanks for this. Would it be paid soon after death? (I suppose so)
Also,
- do pension/SIPP providers normally ask for the name of the beneficiary at the time of application or do I need to ask for a form(?) myself?
- can the beneficiary be a person outside the UK?0 -
Would it be paid soon after death? (I suppose so)
Quickest I have seen is just over a week but sometimes takes about 2 or 3 weeks. If in dispute, it could take longer.- do pension/SIPP providers normally ask for the name of the beneficiary at the time of application or do I need to ask for a form(?) myself?
Some ask up front, others have a standalone from you can nominate at any time (including at point of sale).- can the beneficiary be a person outside the UK?
yes.
Rules on section 32 buy out bonds and section 226 retirement annuity contracts may be different to personal pensions.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks, dunstonh.
I admit the last point on the rules (Sections 32&226) is beyond my immediate comprehension.
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I wonder which pension type investments have a kind of life assurance side to them. Do with profits or maybe friendly societies I think give out some lump sum even if your plan was quite small
I do remember reading how some annuities have an option so that even after you retire it will pay your dependants after you go.
HL ask you to nominate someone but will continue if you dont0
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