From the 6th April 2015, ‘death tax’ on pensions has thankfully been scrapped, it used to be a huge 55%!
If you die before the age of 75 and all or some of your pension is still invested, it’ll pass onto your beneficiaries tax-free.
If you’re 75 or older when you die, your beneficiaries have the option to draw from your pension as income or take it as a lump sum. They will have to pay tax on this.