Pensions are one of the most confusing parts of dealing with an estate. Unlike bank accounts or property, there is no single rule that applies — what happens depends on the type of pension, whether the deceased nominated a beneficiary, and in some cases their age when they died.
This guide covers state pensions, workplace and personal pensions (defined contribution), and defined benefit schemes. It explains who gets the money, whether it goes through probate, how it is taxed, and what practical steps to take to track down and claim any benefits owed.
The short answer
| Pension type | Who inherits | Does it go through probate? |
|---|---|---|
| State pension | Spouse or civil partner may inherit some — depends on when they reached pension age | No — paid directly by DWP |
| Defined contribution (workplace or personal) | Whoever the scheme trustees decide to pay — nomination form is a strong guide but not legally binding | Usually no — trustees pay outside the estate if discretionary |
| Defined benefit (final salary) | Spouse's or dependant's pension paid directly; possibly a lump sum on death in service | Usually no — paid directly by the scheme |
The most important distinction: most private pension money sits outside the estate and bypasses probate. This is intentional — pension trustees have discretionary powers to decide who receives death benefits, which keeps the money outside probate and, until April 2027, outside inheritance tax. But it also means you need to contact each pension scheme directly — no scheme will automatically know someone has died.
State pension
The state pension stops on death. There is no “pot” to pass on — unlike a defined contribution pension, the state pension is a government entitlement, not a savings pot.
However, surviving spouses and civil partners may be able to inherit some additional state pension payments. The rules differ depending on when the deceased (and you) reached state pension age.
If the deceased reached state pension age before 6 April 2016
Under the old basic state pension system, you may be able to:
- Increase your own basic state pension using their qualifying National Insurance years, if you do not already receive the full amount (currently £176.45 per week — source: gov.uk, state pension rates)
- Inherit part of their Additional State Pension (also known as SERPS or State Second Pension)
- Inherit a deferred state pension lump sum or extra state pension, if they delayed claiming
(Source: gov.uk — inheriting basic state pension)
If the deceased reached state pension age on or after 6 April 2016
The new state pension is based on your own National Insurance record. Inheritance from a spouse or civil partner is more limited:
- You may inherit half of any protected payment — an extra amount the deceased was entitled to above the full new state pension — if your marriage or civil partnership began before 6 April 2016 and they reached pension age on or after that date
- You may be able to inherit an extra amount if they deferred claiming their state pension
(Source: gov.uk — inheriting new state pension)
Who to contact
Contact the Pension Service on 0800 731 0469 to check what you can claim. Tell Us Once (the government notification service you use when registering the death) will notify the DWP and stop state pension payments – but you will need to contact the Pension Service separately to ask about any inherited entitlement. See our guide to Tell Us Once for how that process works, and our dedicated guide to what happens to the State Pension when someone dies for the full inheritance rules, overpayment process, and deferred pension lump sum entitlement.
If you are a surviving spouse under state pension age, you may also be entitled to Bereavement Support Payment — a tax-free benefit worth up to £9,800.
Workplace and personal pensions (defined contribution)
Defined contribution pensions — including personal pensions, SIPPs, and most modern workplace pensions — work by building up a pot of money over time. When someone dies, the remaining pot can be passed on to beneficiaries. Here is how that works in practice.
Nomination of beneficiaries
Most schemes ask members to complete an expression of wish form (sometimes called a nomination form). This tells the trustees who you would like to receive the money. Trustees are not legally bound to follow it — they have discretionary power to decide — but in practice they almost always respect nominations, especially when there is a named beneficiary and no competing claims.
If no nomination form exists, trustees will look at the member’s circumstances: immediate family, dependants, and anyone mentioned in any correspondence. They may contact next of kin to understand who should receive the funds.
This discretionary structure is what keeps pension death benefits outside the estate. Because it is the trustees who decide, not the will, the money is not a legal asset of the estate and does not require probate to release. It also generally protects the funds from creditors of the estate.
Lump sum or continuing drawdown
Beneficiaries can usually choose how to receive the money:
- As a lump sum paid directly to them
- As a drawdown fund they can draw on over time (available for direct beneficiaries)
- As a flexible drawdown continuation, if the original holder had already entered drawdown
Tax treatment
The tax treatment of pension death benefits depends on the age of the deceased at death:
Died before age 75: Beneficiaries can usually receive the pension pot tax-free — either as a lump sum or as income from a drawdown fund. However, this only applies up to the individual’s lump sum and death benefit allowance (currently £1,073,100). Anything above this allowance is subject to income tax at the beneficiary’s marginal rate. There is also a two-year rule: if the pension scheme is not notified of the death within two years, any lump sum paid out becomes subject to income tax regardless of the deceased’s age. (Source: gov.uk — tax on a private pension you inherit)
Died at age 75 or over: All pension payments to beneficiaries are subject to income tax at their marginal rate — whether taken as a lump sum or as regular income. There is no tax-free treatment after age 75. (Source: gov.uk — tax on a private pension you inherit)
Inheritance tax — and the 2027 change
Under current rules (for deaths before 6 April 2027), most defined contribution pension pots do not form part of the taxable estate for inheritance tax purposes. This is because the payment is at the trustees’ discretion, not guaranteed to the estate. This makes pensions one of the most tax-efficient assets to pass on.
From 6 April 2027, this will change. The government has announced that unused pension pots and most death benefits will be included in the estate’s value for inheritance tax purposes for people who die on or after that date. This is a significant change — the government estimates around 38,500 estates per year will pay more inheritance tax as a result, with average additional liability of approximately £34,000. (Source: gov.uk — inheritance tax on unused pension funds and death benefits)
If the estate you are dealing with involves a person who died before 6 April 2027, the current rules apply — pension pots outside the estate, no IHT. For deaths on or after that date, the position changes materially and you may wish to take advice from a pension or estate specialist.
Defined benefit pensions
Defined benefit (also known as final salary) pensions work differently. There is no pot to inherit — the scheme pays a set income based on salary and years of service. When a member dies, the benefit passing to their family is determined by the scheme rules, not a beneficiary nomination.
Spouse’s or civil partner’s pension
Most defined benefit schemes pay a spouse’s pension or dependant’s pension on death. The amount is typically a proportion of the member’s pension entitlement — commonly half (50%), though some schemes pay two-thirds or more. The exact amount depends on the specific scheme rules.
This pension is paid directly to the surviving spouse or civil partner and is taxable as income. It is not a lump sum and does not go through the estate.
Death in service lump sum
If the member died before retirement, the scheme may also pay a death in service lump sum — often a multiple of salary (for example, three or four times annual salary). This is usually written in trust or paid at the trustees’ discretion, so it generally bypasses probate in the same way as a defined contribution lump sum. Check the scheme documentation or contact the scheme administrator for details.
Dependant children
Many defined benefit schemes also pay a smaller pension to dependent children, typically until they reach age 23 or finish full-time education.
What to do
Contact the scheme administrator directly — every defined benefit scheme has one. The scheme member’s payslips, annual statements, or P60s should show the name of the scheme; look for a pension administrator address or contact on those documents.
Specific guides for the largest UK public-sector defined benefit schemes:
- How to notify NHS Pensions when someone dies – for members of the NHS Pension Scheme (1995, 2008 or 2015 sections)
- How to notify LGPS when someone dies – for members of the Local Government Pension Scheme, covering local government, schools, and other public bodies
- How to notify the Teachers’ Pension Scheme when someone dies – for teachers and lecturers in state schools, sixth-form colleges, and FE
- How to claim Armed Forces Pension benefits when someone dies – for members of AFPS 75, AFPS 05, and AFPS 15, including the separate Armed Forces Compensation Scheme
For the most common auto-enrolment defined contribution scheme, see:
- How to claim a NEST pension when someone dies – NEST is the UK government-backed default auto-enrolment pension used by around 14 million workers, many of whom may not know they have an account
- How to notify NOW: Pensions when someone dies – NOW: Pensions is one of the UK’s largest auto-enrolment providers, used by more than 30,000 employers; members nominate beneficiaries through the now:u platform and the Trustee pays at their discretion
- How to claim a People’s Pension when someone dies – The People’s Pension is the UK’s largest independent commercial master trust, with over seven million members and more than 100,000 employers; a defined contribution scheme run by People’s Partnership (formerly B&CE), with death benefits paid at trustees’ discretion guided by any expression of wish on file
- How to claim a Legal & General pension when someone dies – L&G is one of the UK’s largest workplace pension providers; workplace pensions, personal pensions, SIPPs, and annuities each have a separate contact team
- How to claim an Aviva pension when someone dies – Aviva is one of the UK’s largest auto-enrolment providers; covers Group Personal Pensions, personal pensions, SIPPs, and annuities, with death benefits paid at Aviva’s discretion guided by the expression of wishes form
- How to claim a Scottish Widows pension when someone dies – Scottish Widows is one of the UK’s largest pension providers, part of Lloyds Banking Group; covers workplace pensions (GPP), personal pensions, SIPPs, and annuities, with death benefits paid at trustees’ discretion guided by any expression of wishes form on file
- How to claim a Standard Life pension when someone dies – Standard Life (part of Phoenix Group, with pensions on the abrdn platform) offers workplace pensions, personal pensions, Wrap SIPPs, and annuities; death benefits paid at trustees’ discretion guided by the expression of wishes nomination
- How to claim a Royal London pension when someone dies – Royal London is the UK’s largest mutual insurer; offers workplace pensions, personal pensions, with-profits pensions, and annuities, with death benefits paid at trustees’ discretion; separate contact numbers for direct pensions and adviser-placed/Scottish Life pensions
- How to claim a Phoenix Group pension when someone dies – Phoenix Group is the UK’s largest long-term savings and retirement business; a closed life fund that holds legacy policies from Standard Life Assurance, ReAssure, Abbey Life, Pearl Assurance, NPI, and AXA Wealth — millions of people have Phoenix pensions without knowing it
- How to notify PensionBee when someone dies – PensionBee is one of the UK’s largest pension consolidators, with around 250,000 customers who move old workplace and personal pensions into a single SIPP; death benefits are paid at the scheme administrator’s discretion guided by any expression of wishes recorded in the customer’s BeeHive account
- How to notify Aegon when someone dies – Aegon is one of the UK’s largest pension and retirement providers, with approximately three million customers; covers workplace pensions (GPP), SIPPs, Aegon Platform (formerly Cofunds) investment accounts, ARC/One Retirement plans, and annuities, with pension death benefits paid at trustees’ discretion guided by any expression of wishes on file
What to do when someone dies
If you are dealing with a pension after a bereavement, the practical steps are:
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Find out what pensions they had. Look through paperwork, bank statements (for regular pension income payments), P60s, and any annual pension statements. Old employers are also worth contacting directly.
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Use the Pension Tracing Service if you cannot locate a scheme. The government’s free service at gov.uk/find-pension-contact-details helps you find contact details for lost or old pension schemes — you search by employer name or pension provider. Note: the service gives you contact details only; you then contact the scheme directly to confirm whether there is a pension and how to claim. For a full guide to using the service, including what it covers, what information you will need, and what to do once you have the administrator’s details, see our Pension Tracing Service guide.
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Contact each scheme. Notify them of the death. They will ask for a death certificate and may ask for details of the nominated beneficiary or next of kin. Each scheme has its own process — the trustees need time to review the nomination form and decide on payment.
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Tell Us Once handles state pension. When you register the death, using Tell Us Once notifies the DWP and stops state pension payments. For inherited state pension entitlements, contact the Pension Service separately.
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Do not wait on probate. Because most pension death benefits are paid at the trustees’ discretion and bypass the estate, you do not need to wait for a grant of probate before contacting pension schemes. You can start the process immediately. For more on probate timelines and process, see how long does probate take?
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Deal with multiple pensions separately. Many people accumulate several pensions over a working life. Each scheme must be contacted individually — there is no central notification service equivalent to the Death Notification Service for banks.
Common questions
How long does it take to receive pension death benefits?
It varies significantly by scheme. For defined contribution schemes where there is a clear nomination, straightforward cases can often be paid within four to eight weeks of the scheme receiving the death certificate and claim form. More complex cases — multiple potential beneficiaries, a missing nomination form, large estates, or complex family circumstances — can take several months as trustees take time to make their decision. There is no legal deadline by which trustees must pay; if a case is taking a very long time, it is reasonable to follow up and ask for an update.
The two-year clock for tax-free treatment (for deaths under 75) starts from when the scheme is notified of the death — not from the date of death itself. Notify pension schemes promptly.
Do pensions go through probate?
Usually no. Most workplace and personal pension death benefits are paid at the trustees’ discretion and bypass the estate entirely. This means they are not included in the probate estate and the trustees can pay out without waiting for a grant of probate.
There is an exception: if the pension scheme’s rules direct that benefits must be paid to the estate — rather than at trustees’ discretion — then the money does form part of the estate and does go through probate. This is unusual in modern schemes but worth confirming with the scheme administrator if it is relevant. See our guide what happens to bank accounts when someone dies for more on how other assets are dealt with during probate.
Is pension death benefit taxed?
It depends on the age at death. For deaths before age 75, beneficiaries can receive the money tax-free (up to the £1,073,100 lump sum and death benefit allowance) provided the scheme is notified within two years. For deaths at 75 or over, income tax at the beneficiary’s marginal rate applies to all payments. Defined benefit spouse pensions are taxable as income regardless of age. (Source: gov.uk — tax on a private pension you inherit)
What if there is no nomination form?
The trustees will still make a decision. They will typically look at who was financially dependent on the deceased, review any correspondence or instructions, and consider the family circumstances. In practice, money usually ends up with the obvious beneficiaries — a spouse, civil partner, or children — but the process takes longer than where there is a clear nomination. If the deceased left a will, the trustees may take that into account as evidence of intent, though they are not bound by it.
Summary: pension type, who inherits, and what to do
| Pension type | Who can inherit | Tax | Probate needed? | First step |
|---|---|---|---|---|
| State pension | Spouse/civil partner (limited inheritance only — depends on age) | Taxable as income | No | Tell Us Once stops payments; call Pension Service for inherited entitlement |
| Defined contribution — under 75 | Nominated beneficiary (or trustees' choice) | Tax-free up to £1,073,100 if notified within 2 years | Usually no | Contact scheme, provide death certificate, confirm nomination |
| Defined contribution — 75 or over | Nominated beneficiary (or trustees' choice) | Income tax at marginal rate | Usually no | Contact scheme, provide death certificate, confirm nomination |
| Defined benefit (final salary) | Spouse/civil partner; dependent children | Taxable as income | Usually no | Contact scheme administrator; check scheme rules for spouse pension % |
For a broader view of the estate administration process, see our what happens to the estate when someone dies hub — including guides on bank accounts and other assets that need dealing with after a death.
The family home is often the estate’s largest asset and is handled very differently from pensions. See our guide to what happens to a house when someone dies for the full process — joint tenancy, probate, mortgages, and Land Registry.
If you are dealing with a pension held with a specific provider, our company guides walk through the exact contact details and process for each: how to notify Royal London, how to notify Standard Life, how to claim a Standard Life pension, how to claim an Aviva pension, how to claim a Legal & General pension, how to claim a Scottish Widows pension, how to claim a People’s Pension when someone dies, and how to notify Prudential.