What Happens to a Pension When Someone Dies in the UK

What Happens to a Pension When Someone Dies in the UK

When someone you love dies, dealing with their pension might feel like the last thing you want to think about. But understanding what happens to a pension after death — and what you may be entitled to — can make a real difference to your financial stability during an incredibly difficult time.

This guide walks you through the main types of pension in the UK and what typically happens to each one when the pension holder passes away.

The State Pension

The State Pension doesn't automatically pass to a spouse or partner, but there are circumstances where you may be able to inherit some or all of it.

If your spouse or civil partner died before reaching State Pension age

You may be able to inherit a portion of their additional State Pension (also known as SERPS or State Second Pension). The rules depend on when they reached pension age and the contributions they made during their working life.

If your spouse or civil partner was already receiving their State Pension

You may be able to inherit up to 50% of their additional State Pension, depending on their National Insurance record. The basic State Pension itself generally cannot be inherited, though there are exceptions for those who reached pension age before 6 April 2016.

What to do

Contact the Pension Service to report the death and ask about any entitlement. You can call them on 0800 731 0469 or write to The Pension Service, Post Handling Site A, Wolverhampton, WV98 1AF.

Workplace and Private Pensions

Workplace and private pensions (also called defined contribution or defined benefit pensions) have their own rules about what happens on death. This is where it gets more complex, but also where families sometimes receive more than they expect.

Defined Contribution Pensions (Money Purchase)

With defined contribution pensions — the most common type for people currently working — the pension pot belongs to the member. What happens to it on death depends largely on age at death and whether they had started taking their pension.

If the person died before age 75:

• The pension pot can usually be passed on completely tax-free to nominated beneficiaries
• This applies whether they had started drawing from it or not
• Beneficiaries can take the money as a lump sum or as ongoing pension income

If the person died aged 75 or over:

• Beneficiaries can still inherit the pension pot
• Any payments will be taxed at the beneficiary's marginal income tax rate
• Again, it can be taken as a lump sum or drawn down over time

Defined Benefit Pensions (Final Salary)

Defined benefit pensions — often from public sector employers or older private pension schemes — work differently. They typically pay:

• A spouse's or civil partner's pension, usually between 33% and 50% of the member's pension
• A lump sum death benefit, often two to four times the member's salary if they died in service
• Children's pensions for dependent children, usually until age 18 or 23 if in full-time education

The specific amounts depend entirely on the scheme rules, so you will need to contact the pension provider directly.

The Importance of Nomination Forms

One of the most overlooked aspects of pension planning is the expression of wish or nomination form. This is the document where the pension holder names who they would like their pension benefits to go to.

Unlike a will, pension benefits are usually held in trust and paid at the discretion of the pension scheme trustees. However, trustees almost always follow the member's expressed wishes — provided the form is up to date.

If no nomination form was completed, the trustees will decide who receives the benefits. This could cause delays and may not reflect what your loved one would have wanted.

This is worth checking now for your own pensions, even if it feels uncomfortable. A simple form could save your family significant stress.

How to Find a Lost Pension

It's not uncommon for people to lose track of pensions from previous employers. If you suspect your loved one had a pension you cannot find:

• Check their paperwork for any correspondence from pension providers, payslips showing pension deductions, or P60 forms
• Contact previous employers — HR departments should be able to confirm whether a pension scheme existed
• Use the Pension Tracing Service — a free government service that searches a database of over 200,000 pension schemes. You can use it online at gov.uk/find-pension-contact-details or call 0800 731 0193

Making a Claim

Once you have identified the relevant pension providers, you will need to:

1. Notify the pension provider of the death, providing a copy of the death certificate
2. Complete a claim form — the provider will send you the relevant paperwork
3. Provide identification — you will typically need to verify your identity and your relationship to the deceased
4. Wait for the trustees' decision — for discretionary benefits, trustees may take a few weeks to make their decision

Most pension providers handle bereavement claims with sensitivity, and many have dedicated bereavement teams.

Bereavement Support Payment

Separately from pensions, if your spouse or civil partner died and you are under State Pension age, you may be eligible for Bereavement Support Payment. This is a government benefit that provides:

• An initial lump sum of £2,500 (or £3,500 if you have dependent children)
• Monthly payments of £100 (or £350 with dependent children) for up to 18 months

You must claim within 21 months of the death. Apply through GOV.UK or your local Jobcentre Plus.

Getting Help

Dealing with pensions after a bereavement can feel overwhelming, especially when every provider has different forms and different rules. If you are finding it difficult to keep track of everything, tools like GetPassage can help you manage the administrative tasks that follow a death, so you can focus on what matters most.

You do not have to navigate this alone. Take it one step at a time, and don't hesitate to ask pension providers for help — most have staff trained specifically to support bereaved families.

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This article provides general guidance only and does not constitute financial advice. For advice specific to your circumstances, consider speaking with a financial adviser regulated by the Financial Conduct Authority.