What happens if you die after taking your money
Once you’ve started to take your savings, what your loved ones may receive if you die depends on the option you chose at the point you accessed your money and the exact options available will be determined by the terms of your plan.
It’s a sensitive subject, but you can never be too prepared for what life might throw at you. So it’s important to understand the options for your beneficiaries.
If you’ve chosen to take your pension pot as cash:
If you’ve taken your entire pension pot as cash, then all your benefits will have been paid from the scheme already. Your loved ones won’t receive anything more from the plan.
If you’ve only taken some cash, any money you have left in your pension pot may be paid to your chosen beneficiaries. They may have options as to how they are able to take the money, depending on the terms of the plan.
Legal & General has discretion as to who receives the money but we will take your wishes into account.
If you’ve chosen a flexible retirement income:
Your chosen beneficiaries may be entitled to the savings left in your pension pot. They may have options as to how they are able to take the money, depending on the terms of the plan.
Legal & General has discretion as to who receives the money but we will take your wishes into account.
If you’ve chosen to buy an annuity:
Annuities can continue to be paid as income after you die to your spouse, registered civil partner or financial dependants. However, this is determined by the type of annuity you purchased and the options you chose at the time.
A key part of your retirement planning should be to make sure we have an up-to-date Nomination of beneficiary form, you can do that by simply logging in to Manage Your Account and click on Nominate Beneficiaries. This will make it clear who you’d like the remainder of your savings to go to if you haven’t yet taken your money or have chosen to take your pension in a series of cash lump sums or a flexible income. However, Legal & General has discretion as to who receives the money but will take your wishes into account.
Please note that in some cases tax may be payable.