It’s a big concern for some people, ‘what happens to my loved ones if I die?’ Will they be provided for?

Whilst you cannot transfer the full amount of your Final Salary/Defined Benefit Pension fund over to a Spouse if you die, There’s normally a provision made by the Pension Scheme Administrator for a Spouse and dependent children. The amount they will receive varies from scheme to scheme.

If you’re not married and don’t have dependent children then your pension pot gets absorbed back into the employer’s pension fund when you die. Unlike a Personal Pension, you cannot pass it on or nominate someone to inherit it.  

** December 2017 update – due to a successful legal challenge it may now be possible for ‘common-law’ partners to make a claim for part of your pension if you die. see the links below for details of the cases

Unmarried woman wins automatic right to late partner’s pension

http://www.telegraph.co.uk/news/2017/02/08/unmarried-woman-wins-automatic-right-late-partners-pension/

Same-sex couple win landmark Pension Equality case

https://www.ftadviser.com/pensions/2017/07/12/same-sex-couple-win-landmark-pension-equality-case/