Crucial advice issue: Death benefits detail advisers need to know

Important differences from previous regime

clock • 4 min read

Andrew Tully shares his insight on changes to death benefits paid from pensions which kick in on 6 April

The headline change from 6 April 2024 is the abolition of the lifetime allowance. But there are also changes to death benefits paid from pensions. The position is broadly similar to what we had before, but there are a few important differences. Advisers may want to make sure clients are in suitable contracts and have the right paperwork completed to ensure the best outcome for their families. On death before age 75, assuming benefits are paid within two years of the notification of death, any lump sums paid are tax-free up to the value of the individual's remaining lump sum and death ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

One year on: Abolished lifetime allowance still throwing up advice queries

One year on: Abolished lifetime allowance still throwing up advice queries

Scheme-specific lump sum queries

Andrew Tully
clock 24 April 2025 • 4 min read
Government to set up small pensions pot consolidator

Government to set up small pensions pot consolidator

Pension Schemes Bill measure will reduce admin costs and boost pots

Jonathan Stapleton
clock 24 April 2025 • 3 min read
Pension engagement only way to cut 'retirement anxiety'

Pension engagement only way to cut 'retirement anxiety'

Verona Kenny says industry has ‘moral duty’ to push engagement

Jenna Brown
clock 23 April 2025 • 3 min read