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

FCA non-advised pension transfer plans branded 'anti-consumer'

FCA non-advised pension transfer plans branded 'anti-consumer'

AJ Bell blasts FCA’s plans as ‘worst kind of regulatory intervention’

Jenna Brown
clock 23 February 2026 • 3 min read
Advisers search for more than 100,000 pension transfers via Origo

Advisers search for more than 100,000 pension transfers via Origo

In first year

Isabel Baxter
clock 23 February 2026 • 1 min read
Pension consolidation deserves more respect than it gets

Pension consolidation deserves more respect than it gets

'For me, pension consolidation is a perfect illustration of why financial planning matters'

Andy Zanelli
clock 19 February 2026 • 5 min read