![]() ![]() For example, not all schemes can facilitate income drawdown and very few defined contribution schemes would allow a dependant’s scheme pension. Whilst legislation dictates the options that are available, the options for individuals may be limited by the scheme rules. The choice is not necessarily all or nothing - the same pension pot may provide benefits in different ways. There is a range of ways in which death benefits can be provided for beneficiaries. It is always sensible for a member to complete a nomination form, as this will give the trustees guidance on who you wanted to benefit from the residual pension. When an individual dies with funds in a money purchase pension scheme, the trustees or scheme administrators will normally have discretion over who receives death benefits. the performance of the investments underlying the scheme. However, this article is going to focus on the death benefits applicable to Money Purchase pensions.Ī money purchase scheme (also known as defined contribution) is a scheme where the final value depends on the amount of contributions made by the member, their employer and any third party. Exactly what benefits your dependents or nominees will receive when you pass away will depend on the type of pension scheme that you have. However, when you die, your personal pension scheme could provide benefits to your financial dependents or your estate. ![]() What happens to my personal pension pot upon my death?Ī common misconception with pensions is that they cease to exist on death.
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