Keeping it simple: Diffusing death benefit confusion

Teething problems

clock • 4 min read

Big changes to death benefit rules have left people feeling unnerved, writes Jessica List. Here she outlines the root of the problem and urges everyone involved to take a simple approach

If you'd asked me ten months ago which of the April 2015 changes would still be the biggest topic of conversation today, I'm not sure death benefits would have been at the top of my list. Yes, there were some teething problems: most notably, perhaps, the rules around appointing nominees and successors. The legislation appeared to compromise the administrator's discretion over payments, sparking concerns over inheritance tax implications. HM Revenue & Customs confirmed, however, that this was not the case: administrators still have discretion to choose beneficiaries, although the me...

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

Savers can draw down target retirement income for just 11 years

Savers can draw down target retirement income for just 11 years

Report exposes retirement income gap

Jenna Brown
clock 08 May 2025 • 3 min read
State pension nears tax threshold – how can the government fix it?

State pension nears tax threshold – how can the government fix it?

'While policy change would be welcome, individual action is just as crucial'

Laura Suter
clock 06 May 2025 • 4 min read
A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

Transfer delays highlight need for ten-day Pension Switch Guarantee

Sahar Nazir
clock 29 April 2025 • 2 min read