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

DWP publishes state pension age communications action plan

DWP publishes state pension age communications action plan

Government confirms plan to develop strategy with ‘timely’ and ‘modern’ communications

Martin Richmond
clock 25 June 2026 • 4 min read
Ros Altmann: A pensions manifesto for the new prime minister

Ros Altmann: A pensions manifesto for the new prime minister

Ros Altmann says pension funds could be a 'silver bullet' to revive UK growth

Baroness Ros Altmann
clock 25 June 2026 • 6 min read
Scottish Widows launches pension tracing tool

Scottish Widows launches pension tracing tool

Some 3.3 million pension pots are 'lost' in the UK

Holly Roach
clock 24 June 2026 • 1 min read