Retirement CPD course  

Pension death benefits - Everything you need to know

  • Understand how pension freedoms rules affected pension death benefits.
  • Explain how beneficiaries can access a deceased's pension fund most efficiently.
  • Describe how the various rules impact on the tax position of the beneficiary of the pension fund.
CPD
Approx.30min
Pension death benefits: Everything you need to know
Improved death benefits were one of the biggest advantages of pension freedoms but what exactly are they and how do they work?
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Improved death benefits were one of the biggest advantages of pension freedoms but what exactly are they and how do they work?

Death benefits options differ dramatically between defined benefit schemes and defined contribution schemes, with the former not having evolved much over the years when it comes to spouse, civil partners and dependent children.

However, major changes introduced in Pensions Act 2015 to provide greater pension freedoms for DC schemes allowed people over 55 to have full access to their pension at only marginal tax rates, and the ability to pass on their pension tax-free to their beneficiaries, with some exceptions. 

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Here you will find out the nuances of these freedoms and the impact of the relevant pension scheme's own rules on what can be done with a pension after someone's death.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Benefits payable where the deceased was under the age of 75 are paid income tax free in all cases.

  2. If the deceased died at age 77, the benefits paid from the pension would be subject to:

  3. According to Tait, the workplace or personal pension benefit due on death of the scheme member are most often paid out:

  4. McPhillips says the distribution of benefits on death is made at the absolute discretion of the scheme trustees.

  5. Beneficiaries drawdown means

  6. If no expression of wishes form has been completed, then:

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Understand how pension freedoms rules affected pension death benefits.
  • Explain how beneficiaries can access a deceased's pension fund most efficiently.
  • Describe how the various rules impact on the tax position of the beneficiary of the pension fund.

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