Reader’s Question – What happens to my pension when I die?

Reader’s Question

What happens to a pension when the recipient dies?

My response

That’s an interesting question and the answer is ‘it depends’. For starters it depends on what type of pension you have, i.e. a personal pension or final salary scheme through an employer. But it also depends on when you die, i.e. before you have started taking benefits or after. In addition, there is your state pension to think about.

If reader’s feel that there is demand for a complete easy to follow guide on the issue then let me know but in the meantime here is a selection of links which beautifully sum up each scenario. Simply pick the type of pension you are concerned with and you will be taken to an explanation of what happens to the pension when you die:

• Final Salary Scheme death benefits
• Group Personal Pension/Stakeholder Death Benefits
• Group Money Purchase Schemes
• Personal Pension/Stakeholder Death Benefits
• State Pension Death Benefits

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