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

Pension engagement only way to cut 'retirement anxiety'

Pension engagement only way to cut 'retirement anxiety'

Verona Kenny says industry has ‘moral duty’ to push engagement

Jenna Brown
clock 23 April 2025 • 3 min read
L&G becomes first pension provider to complete dashboards ecosystem connection

L&G becomes first pension provider to complete dashboards ecosystem connection

Provider finalised its connection to the ecosystem today

Holly Roach
clock 17 April 2025 • 1 min read
How public sector pensions impact divorce proceedings

How public sector pensions impact divorce proceedings

'The ripple effects of the McCloud Remedy continue to be felt in divorce proceedings'

Vanessa Gardiner
clock 15 April 2025 • 5 min read