Defined benefit vs SIPP: The death benefit debate continues

Running the numbers on death benefits for clients

clock • 4 min read

Neil MacGillivray pens a follow-up to his last article on DB allowances, this time bringing death benefits in final salary and SIPPs into the mix

In my last article, I covered the topic of the annual allowance (AA) for defined benefit (DB) schemes. The article's purpose was not to fixate on the possibility of an AA charge but instead focus on the need to adopt a holistic approach and determine what were ancillary positives instead. I find that whenever anything is written that appears to be a contrarian view to ‘potential' downsides of DB schemes, criticism can ensue. In one conversation I was told I shouldn't forget that death benefit treatments are far more favourable under money purchase arrangements, like a self-invested perso...

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

The importance of defining the roles within a SSAS

The importance of defining the roles within a SSAS

'Poor role discipline can create compliance, tax and fiduciary risk'

Caitlin Southall
clock 08 October 2026 • 4 min read
AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell has called on chancellor John Healey to commit to a pension tax lock

clock 06 October 2026 • 2 min read
Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

'Real-world consequences of allowing pension tax speculation to run unchecked'

Rachel Vahey
clock 05 October 2026 • 3 min read