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

Govt moves to tackle gender pension gap with LPGS scheme changes

Govt moves to tackle gender pension gap with LPGS scheme changes

Reforms follow consultation on access and fairness in the Local Government Pension Scheme

Jonathan Stapleton
clock 03 February 2026 • 2 min read
Britain's pension ambition is rising - just as cash resilience slips

Britain's pension ambition is rising - just as cash resilience slips

'2026's 'pension resolution' wave is real. But so is the cash-cushion squeeze'

Phillip Wickenden
clock 02 February 2026 • 6 min read
Government again rejects Waspi compensation after review

Government again rejects Waspi compensation after review

DWP: Creation of compensation scheme would be ‘highly impractical’ and ‘time-consuming’

Martin Richmond
clock 29 January 2026 • 3 min read