Death before taking your retirement income If you die before you take your retirement income, your beneficiaries can receive the full value of your pension fund, either as a lump sum or where permitted, as an income. If the total value of death benefits paid from all your pension arrangements exceeds the lifetime allowance applicable at the time, then, where this is paid as lump sum, your beneficiaries may be subject to a tax charge of 55% on the excess amount. You can also provide for income to be paid to your dependents, which will not be subject to the lifetime allowance charge, regardless of the size of the fund.
If you have deferred purchasing an annuity beyond age 75, on your death your pension fund must be used to provide your dependants with an income. If you have no dependants at that time, the fund could go to a nominated charity or be used to boost the pension funds of other members of the same pension scheme as pre-nominated by you.
Death after taking your retirement income The type of death benefit that will be paid, and how it is taxed, will depend on the option you have chosen to provide your retirement income ie annuity, income drawdown pre age 75 and income drawdown post age 75.
If you have chosen to take income drawdown, the remaining fund within the income drawdown facility may be used to provide benefits. If you have taken income drawdown before age 75, in other words it is an Unsecured Pension (USP), the fund can be paid as cash less tax of 35% or used to provide an income for your dependants.
From age 75, where your fund is an Alternatively Secured Pension (ASP), the fund must be used to provide your dependants, if applicable, with an income. Otherwise, it may be transferred to pension plans of other nominated members of the scheme or paid to nominated charities.
Who to contact if you have a query or want more information: Share dealing is administered by Hoodless Brennan as Account Manager and any additional pension investment outside equity dealing or administration for the pension is the responsibility of Capita SIP Services as Plan Manager.
Hoodless Brennan Contact Details: Telephone Execution Only SIPP Accounts: (020) 7538 1166
On-Line Trading SIPP Accounts (020) 7510 8649
E-mail: SIPP@hoodlessbrennan.com Capita SIP Services Contact Details: Website:
www.capitasipservices.co.uk Telephone: Hoodless Brennan SIPP Accounts: 01722 427 380, Facsimile: 01722 437650
E-mail: capita-sip-services@capita.co.uk Click Here: to find out where to send your query to.
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