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What happens to your pension when you die - free factsheet

Pass your pension on

Download our free factsheet

6 April 2015 saw changes to the tax treatment of pensions on death, including the abolition of the 55% 'death tax'. Download this free factsheet now to find out about these changes. This guide is not personalised advice.

This factsheet is based on our understanding of the current pension legislation, which is subject to change. Tax charges could be payable if the lifetime allowance of £1 million (2016/17) is exceeded. This factsheet is a broad summary and cannot cover every nuance. You should not take, or refrain from taking, any action based solely on this factsheet.

Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. Your personal data will remain confidential, and will never be passed to any other company, unless required by law.

Could you pass your pension on tax free when you die?

Rules introduced in April 2015 mean you can now build up your pension fund knowing you can not only draw on your savings without the previous restrictions from age 55, but also potentially pass on any unused savings to beneficiaries tax free on death before 75.

This free factsheet reveals:

  • How pension wealth can be passed on to loved ones on death
  • How those with joint life annuities could benefit
  • What choices your beneficiaries might have

This factsheet is not personal advice. It is based on our understanding of current pension legislation, which is subject to change. Tax charges could be payable if the lifetime allowance of £1 million (2016/17) is exceeded. This factsheet is a broad summary and cannot cover every nuance. You should not take, or refrain from taking, any action based solely on this factsheet.

The information on our website is not personal advice but we can offer advice if specifically requested. What you do with your pension is an important decision, which could be irreversible. Drawdown is a more complex option than an annuity. Make sure you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you are unsure. The Government's free Pension Wise service can help. It provides impartial guidance face-to-face, online or by phone - more on Pension Wise.

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