Death Benefits

Death after taking benefits after age 75

If a member dies on, or after their 75th Birthday and they are being paid an alternatively secured pension, then their fund will be used to provide pension benefits to their spouse and/or dependants.

This pension will be as income withdrawal (either as unsecured income or alternatively secured income as appropriate), or through the purchase of a Lifetime Annuity.

If the member does not leave a spouse or dependants then their fund may be paid to a charity of their choice (which will be free of Inheritance Tax).

The Trustee may also be able to pay a lump sum to their family or other beneficiaries. However, this would be regarded by HM Revenue & Customs as an ‘unauthorised payment’ and would be subject to substantial tax charges which would include Inheritance Tax.

If the member had purchased a Lifetime Annuity then any payments to their spouse and/or dependants would depend on the terms of that Annuity. If they had provided for a spouse/dependants pension then this would be paid to them for their life. If the member died shortly after purchasing the Annuity then payments would continue for any guaranteed period specified at the time of purchase.