If I die during drawdown?

GSP

Sorry for the morbid title.
I was having a conversation with my wife in the car yesterday. I am 58 and in drawdown while she has a smaller pot, but can’t access yet as she is 53.
We are aware that if any of us dies before aged 75, their pot becomes tax free for the other one.
But say if I die soon before my wife reaches 55. We are living off my drawdown. Can she access my pot straight away, or are their rigid rules where she can’t have any of what was my pension money before she is aged 55? Thanks

tacpot12

No, there are no rigid rules about having to be aged 55 to access drawdown funds transferred from you on your death. You can designate anyone of any age to receive some of your funds and they can access them in the form of lump sums or income, or they can just invest them to leave them to grow for their own retirement. 

This page from AJ Bell confirms this: SIPPs and death | AJ Bell Youinvest 

Sea_Shell

Do you have any savings outside of pensions to live on whilst you sort things out with his pension provider?

I don't know how quickly they would release the money.   Would they insist on probate first?

GSP

tacpot12 said:

No, there are no rigid rules about having to be aged 55 to access drawdown funds transferred from you on your death. You can designate anyone of any age to receive some of your funds and they can access them in the form of lump sums or income, or they can just invest them to leave them to grow for their own retirement. 

This page from AJ Bell confirms this: SIPPs and death | AJ Bell Youinvest 

Thanks. So my wife could continue to drawdown from the pot, even though she would be only 53?

GSP

Sea_Shell said:

Do you have any savings outside of pensions to live on whilst you sort things out with his pension provider?

I don't know how quickly they would release the money.   Would they insist on probate first?

No, we just drawdown from the pot as and when we need money, and keep the rest invested.

Sea_Shell

What sort of percentage of your pot are you drawing down annually?

Have you got a plan B if your investments falter and can't sustain your drawdown level?

GSP

Sea_Shell said:

What sort of percentage of your pot are you drawing down annually?

Have you got a plan B if your investments falter and can't sustain your drawdown level?

I have around 7% of the fund in cash, so have about 1.5 years of money.

Albermarle

GSP said:

Sorry for the morbid title.
I was having a conversation with my wife in the car yesterday. I am 58 and in drawdown while she has a smaller pot, but can’t access yet as she is 53.
We are aware that if any of us dies before aged 75, their pot becomes tax free for the other one.
But say if I die soon before my wife reaches 55. We are living off my drawdown. Can she access my pot straight away, or are their rigid rules where she can’t have any of what was my pension money before she is aged 55? Thanks

Happy Xmas 

GSP

Albermarle said:

GSP said:

Sorry for the morbid title.
I was having a conversation with my wife in the car yesterday. I am 58 and in drawdown while she has a smaller pot, but can’t access yet as she is 53.
We are aware that if any of us dies before aged 75, their pot becomes tax free for the other one.
But say if I die soon before my wife reaches 55. We are living off my drawdown. Can she access my pot straight away, or are their rigid rules where she can’t have any of what was my pension money before she is aged 55? Thanks

Happy Xmas 

Great, thanks Albermarle 😐

shinytop

GSP said:

Sorry for the morbid title.
I was having a conversation with my wife in the car yesterday. I am 58 and in drawdown while she has a smaller pot, but can’t access yet as she is 53.
We are aware that if any of us dies before aged 75, their pot becomes tax free for the other one.
But say if I die soon before my wife reaches 55. We are living off my drawdown. Can she access my pot straight away, or are their rigid rules where she can’t have any of what was my pension money before she is aged 55? Thanks

Which one of you actually started this conversation?  If I were you I'd be very careful if Mrs GSP offers to make you a nice mulled wine or a special Christmas cocktail... 

tacpot12

GSP said:

tacpot12 said:

No, there are no rigid rules about having to be aged 55 to access drawdown funds transferred from you on your death. You can designate anyone of any age to receive some of your funds and they can access them in the form of lump sums or income, or they can just invest them to leave them to grow for their own retirement. 

This page from AJ Bell confirms this: SIPPs and death | AJ Bell Youinvest 

Thanks. So my wife could continue to drawdown from the pot, even though she would be only 53?

Yes, she could draw it any age.