In the unfortunate event of your death before retirement your private pension plan does not simply vanish. In fact, you could almost say that saving into a pension is a good way of providing for dependants on your death as the full accumulated value is paid to your estate. If you have a spouse, the most likely scenario is that he or she will be able to take the full amount tax free.
Employer/Executive Pension Scheme
Revenue rules state that the maximum lump sum death payment for a member of an employer scheme is four times final salary and the balance of the fund must be used to buy an annuity for dependants. Again, if the lump sum goes to a spouse it should be tax free.
The above is a pretty basic summary, as with almost any policy this would have to be looked at on an individual basis. For further information please give me a call on 068 31777 or 0879308181. Alternatively, you can email me at firstname.lastname@example.org.
19th January 2017