Death Benefits
This
graph shows that USP ceases to operate on death, but, that the remaining fund
is available to be paid out to dependants, which they then choose how to spend.
If you die before you reach age 75 or buy a
lifetime annuity, you can leave your pension fund to your partner and any
dependants. They will be able to:
Take some or all of the remaining fund as a
lump sum, which is taxable – currently at 35%;
Carry on with USP until they are 75 or when
you would have been 75 whichever is the earlier; or
Take the fund and buy a lifetime annuity
with it.
You may stay with the existing pension
provider, or you can consider moving to another provider and shopping around
for the best deal before making a final decision . We can
provide help at all stages.