What happens to your pension when you die? It depends

• Upon death, the state pension generally ceases and isn't inheritable, with exceptions for those eligible for the Additional state pension and some others depending on specific circumstances.
• Private pensions, defined contribution (DC) and defined benefit (DB), can often be passed on to beneficiaries.
• DC pension beneficiaries can access funds tax-free if you pass away before age 75, while those inheriting after 75 likely face Income Tax.
• DB pensions may offer continued payments to spouses, partners, or dependents based on the specific scheme rules.
• A significant pension overhaul in April 2027 will subject unused pension funds to Inheritance Tax, impacting defined benefit schemes more than defined contribution pensions.

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Here’s what happens to your pension when you die