If you die before the age of 75 and before taking benefits, the money will usually be paid out as a lump sum to your nominated beneficiaries.
Alternatively, the account can be used to provide a tax-free pension for your beneficiaries either in the form of flexi-access drawdown or by purchasing an annuity.
Should you decided to use your entitlement to purchase an annuity, you’ll only be able to pass on guaranteed benefits to your beneficiaries.
If you die after reaching the age of 75, the same benefits as above are available to your beneficiaries, however death benefit payments will be taxed at the beneficiary’s marginal tax rate.
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