Death benefits.

Our self invested pension plans aren't just there to help your clients plan for their future. They are also designed to provide support for their families if they die.

Providing for others.

In the event of a client’s death, the way their fund is treated will depend upon their age and whether they have drawn any benefits. Lump sums are paid out at the discretion of the Trustees.

Death before taking benefits

If your client has not reached the age of 75, the whole of their fund - up to the Lifetime Allowance - can be paid out as a tax free lump sum to their spouse or nominated beneficiaries.

Alternatively, they can elect for their spouse or dependants to receive a pension. This can either be secured through the purchase of an annuity or paid directly from the fund.

If your client dies after the age of 75, the fund will be subject to a 55% tax charge.

Unused drawdown funds of a member who dies with no living dependants may be donated to charity, free of tax.

Death after retirement

Where an income has been drawn from the fund, your client's spouse or dependants will have three options:

• A pension can be paid from the scheme - tax will be paid on the pension by the recipient at their marginal tax rate
• The assets in the scheme could be realised and used to purchase an annuity - tax will be paid on the pension by the recipient at their marginal tax rate
• The assets in the scheme could be realised and the proceeds distributed - less tax at 55%

If there are no such beneficiaries, the funds can be reallocated, subject to a 55% tax charge, to anyone. If benefits have been secured by an annuity, any continuing income will depend upon the terms selected when the annuity was purchased.