Independent Financial Life Planners Bishop's Stortford: Passing on your pension

Wednesday, 2 November 2016

Passing on your pension

Making sure we have a pension in place for our later years is key to many financial plans and Enable’s IFA’s in Bishops Stortford like to help make sure you have a pension in place to meet your needs. Some of us are also concerned to be able to pass on a pension particularly to a partner but most pensions can actually be inherited by anyone when you die - and pensions can still be tax efficient where an inheritance liability is likely to apply to the owner's estate.

The way you take your pension however will affect how it can be used by your beneficiaries. If you have already purchased an annuity with your pension money typically meaning that you receive an income for life the death benefits will depend on the type of annuity you selected. If you choose a guaranteed period of payment, the annuity will continue to be paid for the agreed term even if you die before that. If you bought a "joint life" annuity, your spouse will continue to receive the payments at the chosen level until they die.

If you select a "capital protected annuity" or "value protected" annuity, your beneficiary will inherit a lump sum, your pot minus any annuity payments you took before you died. Pension cash which has not yet been spent on an annuity will remain outside of your estate for inheritance tax purposes.

As part of you financial planning you need to complete a nomination form with the pension company to specify who you would like to receive the benefits on your death and what proportion. Enable’s IFAs are happy to help with any pension planning.

Source: http://www.telegraph.co.uk/money/special-reports/how-can-i-ensure-my-family-gets-my-pension-when-i-die/

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.