Getting to grips with death benefits

DEATH BENEFITS

clock

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...

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 Your profession

Intergenerational transfers: 1.2 million older clients predict children will change advisers

Intergenerational transfers: 1.2 million older clients predict children will change advisers

‘Firms cannot afford to be complacent about the threat of intergenerational transfers’

Isabel Baxter
clock 18 September 2025 • 2 min read
PFS reports pre-tax loss of £660,000 for 2024 as membership falls

PFS reports pre-tax loss of £660,000 for 2024 as membership falls

Total benefit recharge to CII in 2024 was £6.96m

Jenna Brown
clock 18 September 2025 • 3 min read
Consolidation: Does big equal bad in the advice sector?

Consolidation: Does big equal bad in the advice sector?

'Integrations take time and effort on all sides'

Anthony Carty
clock 17 September 2025 • 4 min read