You might be wondering, what if you die before retiring? What will happen to your pension fund? This article will serve as a pension advice article, and will answer these questions.
If you die before you reach retirement, let say for example you are under salary related scheme of company pension, you will be subjected to different situations depending on your status as member.
If you’re a member that has stopped making contributions or in short a deferred member, your dependant will be subjected to fewer rights to your benefits depending on your scheme’s rules.
And sometimes, if you are in a civil partnership or married and the scheme’s offering, instead of Additional State Pension, benefits your dependants will receive refunds of your contributions but without interest.
But if you are an active member, meaning you are continuing your contributions, and depending on your scheme’s rules, your dependants may have the following payable benefits:
- A lump sum of up to four times of your salary at the time of your death, tax-free of course
- A refund of all your contributions without interest
- A pension plan, the amount will be stated on your scheme’s rules, for your dependant.