Where does your hard-earned money go when you die? If you want your money to go to a particular person or people, you need to tell us. We call this ‘nominating your beneficiary’ and you can do it on your Pension Account.

It’s important to know your loved ones will be looked after when you die. If you die when you’re under 75, your dependants could receive a tax-free lump sum. If you’re 75 or over, they may have to pay income tax.

The lump sum is paid under ‘discretionary trust’ so that it is not subject to inheritance tax (although this may change soon) and can be made more quickly. The Trustee considers your wishes when deciding who to pay the lump sum to, but is not bound by them.

For more information about what happens to your pension savings when you die, go to the MoneyHelper website.