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What happens to my DC pension funds if I die before purchasing an annuity
TrickyDicky101
Posts: 3,537 Forumite
I am in my 30s, have wife plus dependents and currently have adequate life insurance provisions provided by employment and own policy.
I have a medical condition which would provide me with an impaired life annuity when/if I come to purchase one.
What happens to my DC funds should I expire before reaching retirement age and thus before I have an opportunity to purchase an annuity?
Do they continue in my wife's name or can they be transferred into her name on my death? Or do they get taxed to bits by the government before being handed over?
I have a medical condition which would provide me with an impaired life annuity when/if I come to purchase one.
What happens to my DC funds should I expire before reaching retirement age and thus before I have an opportunity to purchase an annuity?
Do they continue in my wife's name or can they be transferred into her name on my death? Or do they get taxed to bits by the government before being handed over?
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Comments
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What happens to my DC funds should I expire before reaching retirement age and thus before I have an opportunity to purchase an annuity?
The full fund value is paid tax free to your nominated beneficiary.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 -
And this would be outside of any pension fund, so in theory my wife could do as she liked with it?
I keep joking with her I'm worth more dead to her than alive.0 -
Yes. You may well be worth more to her dead than alive, particularly if you also have say life assurance for twenty times your annual income...0
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I won't begrudge making her a coffee of an evening anymore - need to keep her onside!0
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