What happens to my UK pension when I die?

A concern for many people is how their loved ones will manage financially when they die. Understanding what pension benefits your loved ones would be entitled to in the event of your death is, therefore, very important. Such benefits can differ considerably depending upon your pension scheme.

For example, if you have a UK defined benefit/final salary pension, typically your spouse will be entitled to only 50% of your annual pension per annum (indexed link). While it is not uncommon for a percentage of your pension to also be payable to children under the age of 18 (or 23 if in full time education), this is not always the case.

Where your current pension scheme does not offer the types of death benefits that you would desire from your pension, this could be an important factor in your decision on whether to transfer your current scheme to another provider/type of pension.