What happens to your pension if you die?

The answer depends on the pension type

What happens to your pension if you die depends on the type of pension, whether you have retired, scheme rules, tax rules and who is entitled to receive benefits.

Before retirement, some pensions may pay a lump sum, transfer value or other death benefit. In workplace schemes, there may also be separate life cover. The exact outcome is not the same for every arrangement.

After retirement, the answer can change. An annuity, ARF or remaining pension fund may each have different rules. Some benefits may continue to a spouse or civil partner, while others may depend on choices made at retirement.

Because the rules can be personal, beneficiary forms and expression of wishes documents are important. They help trustees or providers understand who you would like considered.

Practical steps

• Check your scheme's death benefit rules.
• Keep beneficiary details up to date.
• Understand what changes after retirement.
• Review any separate life cover.
• Ask about tax treatment for beneficiaries.