#WorkplacePensions #InheritanceTax #PensionBeneficiary
Hey everyone,
I’ve been thinking about what happens to my workplace pension if something were to happen to me 🤔 Do you know what happens after you die with your pension? Here are some assumptions I’ve come across, but I’d love to hear your thoughts:
– 🌟 If I die before 75 and haven’t started drawdown, the beneficiary gets the entire pot tax-free. But does it matter who the beneficiary is from a taxation standpoint?
– 🌟 If I die before 75 and drawdown has started, the remaining pot is inherited tax-free, but previous withdrawals count towards IHT. Does the beneficiary’s tax rate matter in this case?
– 🌟 If I die after 75 without drawdown, the beneficiary pays tax on withdrawals at their marginal rate – is this correct?
– 🌟 If I die after 75 with drawdown, the beneficiary pays tax on withdrawals at their marginal rate too. But does the tax get deducted first regardless of how they choose to take the money?
According to Fidelity’s website, the rules seem quite clear, but it might still be confusing for some. What do you think? Let’s discuss and share our knowledge 💬💡
And as a possible solution, maybe seeking advice from a financial advisor could provide more clarity on this matter and help you make informed decisions for your loved ones.
Can’t wait to hear your insights! 🌟
Is your workplace pension with Fidelity? If not, contact your workplace pension provider and they will tell you.
With the little information you have provided, we would be guessing.
Is your workplace pension purely a defined contribution pot ? Is Fidelity the pension manager
? Have you completed an ‘expression of wishes’ or ‘beneficiary nomination’ form ?
What happens when you die depends on the above answers.