What happens to your pensions when you die?
Dec 12, 2023
There are some nasty rumours out there that have led a lot of people to believe you lose your pension when you die. That’s not true.
What happens to your pension savings depends on a few things, but for the purpose of this post let’s assume that all of the people reading are under the age of 75, haven’t taken any of their pension out yet, and have a DC pension (the most common type of workplace pension).
If that’s true – drumroll please…
Your dependents get it. All of it. Usually in a lump sum.
This could be your spouse, kids, family etc… or someone else that you’ve stated in your will, if you’ve sorted that out 😳.
Nice and simple.
Plus, there’ll be no inheritance or income tax applied to it.
Ignore those rumours ✌️.