Pension drawdown glossary
What happens to a defined contribution pension when you die. If you die before 75, beneficiaries can usually take it tax-free, as long as it is paid within two years and within your Lump Sum and Death Benefit Allowance for lump sums. If you die at 75 or over, what they take is taxed as their income.
Source: GOV.UK: tax on a private pension you inherit · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.