If you pass away before retiring, the fate of your pension fund is determined by several criteria, including the sort of pension you have, whether you have reached the age of 75, and if you have designated any beneficiaries. State Pension: If you have not yet reached state pension age and you die, your state pension entitlements will not generally be transferred to your beneficiaries or estate. However, your spouse, civil partner or qualifying partner may be eligible for some benefits based on your national insurance contributions, such as a bereavement allowance or bereavement payment. Defined Benefit Pension (also known as a ‘DB’ or ‘final salary’ pension): If you are a member of a defined benefit pension scheme and you die before retirement, the pension scheme may provide benefits to your spouse, civil partner or dependents. This may include a pension payable to your spouse or civil partner, or a lump sum payment to your nominated beneficiaries or estate. Defined Contribution Pension (also known as a ‘DC’ pension): If you have a defined contribution pension, the value of your pension fund at the time of your death may be paid to your nominated beneficiaries or estate. Normally the pension is transferred as-is and can then be re-invested to suit the beneficiaries’ objectives. The transfer of a pension is outside the scope of inheritance tax and no inheritance tax should be chargeable on a pension transfer. At KGJ, we know that pension rules and regulations are complex and subject to change. We therefore recommend seeking professional financial advice whenever you need to understand the specific implications of your pension, be it in the event of your death before retirement or in any other circumstances.