What Happens to an Aegon Pension When Someone Dies?

What happens to an Aegon pension when someone dies?

1Aegon pension death benefits bypass probate — the fund is paid at the trustees' discretion to the nominated beneficiary
2As a defined contribution provider, the full fund value is paid out; options include lump sum, inherited drawdown, or annuity
3The expression of wishes registered with Aegon is the key document — trustees consider it but retain discretion
4If the member died before age 75, payouts are normally tax-free; if after 75, income tax is payable at the recipient's marginal rate
5From April 2027, unspent Aegon pension funds will be brought within the scope of inheritance tax

Aegon is a major pension and investment provider in the UK, offering workplace pensions, personal pensions, and SIPPs. When an Aegon pension holder dies, the fund value can be paid to a nominated beneficiary or eligible dependant. These funds fall outside the estate and do not normally require probate.

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Does an Aegon Pension Require Probate?

In most cases, no. Aegon pension funds are held in a discretionary trust, meaning they fall outside the deceased's estate. Aegon can pay the death benefit directly to the nominated beneficiary without a Grant of Probate.

If there is no nomination and no suitable beneficiary, the fund may be paid to the estate. In that case, you may need to apply for probate.

What Death Benefits Does Aegon Pay?

For defined contribution pensions and SIPPs, the death benefit is the full fund value at the date of death. Aegon typically offers beneficiaries these options:

Lump sum — paid directly to the nominated beneficiary
Inherited drawdown — fund transferred into an Aegon pension in the beneficiary's name
Annuity purchase — fund used to provide a guaranteed income

Aegon also administers employer group pension schemes where death-in-service benefits may be provided separately. Check the employer's HR documents for details.

How to Claim Aegon Pension Death Benefits

Contact Aegon's bereavement team. Call 0345 604 0099 or visit aegon.co.uk/support/bereavement. Have the plan number or the deceased's national insurance number ready.
Provide a certified copy of the death certificate.
Aegon will review the expression of wishes and contact the nominated beneficiary if valid.
Complete the claim forms and choose how to receive the benefit.

The Nomination Form: Why It Matters

Aegon pension holders should complete an expression of wishes (nomination of beneficiary). The trustees consider this carefully but retain discretion — maintaining the discretionary trust structure that keeps funds outside the estate. In practice, Aegon almost always follows a valid, current expression of wishes.

Members can update their expression of wishes through the Aegon Retiready online portal or by contacting Aegon directly. This should be done after any significant life event.

Tax on Aegon Pension Death Benefits

Death before age 75: Lump sums and inherited drawdown payments are normally tax-free for the recipient.
Death at age 75 or over: All payouts are taxed as income at the recipient's marginal rate.

See GOV.UK for the latest guidance on tax on pension death benefits.

IHT and Aegon Pensions From April 2027

Currently, Aegon pension funds fall outside the estate and are not subject to inheritance tax. From 6 April 2027, proposed changes will bring unspent pension funds within the scope of IHT.

Read our full guide to pensions and inheritance tax from April 2027.

If There Is No Nomination Form

Without a nomination, Aegon trustees will use their discretion, typically paying to the surviving spouse or civil partner. If no suitable beneficiary is found, the fund may be paid to the estate, which becomes subject to probate and estate administration.

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