Ian Linden, technical manager, pensions, at James Hay Partnership, highlights the importance of getting to grips with death benefits.
No one can say with any certainty they will be alive tomorrow, though, from a pension planning perspective, the ideal would be to die young – but not too young – and preferably before age 75! In such a scenario, the member should have achieved the maximum tax efficiency through their pension arrangement, namely – tax relief on their contributions, growth in a tax advantaged environment, no tax charge on uncrystallised funds and no IHT liability on the pension fund as a whole. Unfortunately, life is not that predictable and therefore any holistic financial plan has to attempt to encompass...
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