Looking after your loved ones
It’s important to know that your loved ones will be protected financially when you die. The DB section helps to do this in different ways, depending on when you pass away.
What benefits are payable if I die before starting to take my pension?
Partner’s pension | Your partner will receive a pension equal to 50% of the pension you have built up, increased to your date of death. |
Cash sum benefit | If you die after age 60 and haven’t started to take your pension, a lump payment equal to five times the annual pension which would have been paid to you, had it started on your date of death, is also payable. Also, if no pension is payable, then a return of contributions payment could be payable. |
What benefits are payable if I die after I retire?
Partner’s pension | Your partner will receive a pension equal to 50% of your full pension at the date you retired, i.e. including the amount of any of your pension that you exchanged for cash at retirement, plus increase to your date of death. |
Cash sum benefit | If you die within five years of your pension starting, a cash sum equal to the balance of the pension payable in the first five years is payable, based on the rate of pension in payment the date of your death. |
Children’s pensions | Pensions may also be payable to your children, if they are under 18 (or 23 if still in full-time education) at the date of your death. |
Ensure your nominated beneficiaries are up to date!
Keeping your nominated beneficiaries current is critical to ensure that they receive any funds payable in the event of your death. This is especially important if your circumstances change – for example, when becoming a parent or starting or ending a relationship.
You can update your nominated beneficiaries at any time by completing an Expression of Wish form. You can fill one in on Aptia OneView or request one from Aptia.
Who will receive any cash sum benefit on death?
It’s up to the Trustee to decide who should receive any money and they can split it between different people. It’s important to complete an Expression of Wish form so that the Trustee can consider your wishes.
Under current legislation, this payment will be free of both Income and Inheritance Tax
How are partners’ pensions paid?
Your partner’s pension will be payable for their lifetime. It’ll be paid monthly in advance and tax will be deducted under the PAYE system. It will also be increased annually in payment, like your pension.