Death benefits

The rules concerning who you can leave your pension to changed in April 2015.

What has changed?

You can now leave your pension to anyone - but make sure you complete an 'expression of wish' form, so that your provider knows who you would like to leave it to.

How much will it cost them?

Another change that came into play, as part of the Pension Freedoms in April 2015, was the amount of tax payable by the beneficiary.

If you pass away before the age of 75, your pension will be passed on completely tax-free. 
If you pass away after the age of 75, your pension will be passed on at the marginal rate of your beneficiaries.

What's more, pensions aren't counted as part of someone's estate, so they should not be subject to inheritance tax. If the rules do not change, this means your beneficiaries could then pass this pension on to their beneficiaries, so this pot of money can be passed from one generation to another.