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Aegon is a major pension and investment provider in the UK, offering workplace pensions, personal pensions and SIPPs. It has absorbed several other books of business — Scottish Equitable, Cofunds, the Nationwide platform — so the plan name on the paperwork matters when you call: Aegon runs different contact lines for each. When an Aegon pension holder dies, the fund value can usually be paid to a beneficiary without a grant of probate.
In most cases, no. An Aegon personal or workplace pension is a contract between the member and Aegon rather than a trust, so there are no trustees; the discretion over who receives the death benefit sits with Aegon as scheme administrator under the plan rules. Because the member had no absolute right to direct payment, Aegon can pay a beneficiary directly 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.
For a money purchase pension the death benefit is the fund value at the date of death. Under the pensions tax rules a beneficiary may be able to take it as a lump sum, keep it invested in beneficiary drawdown, or buy an annuity — but which of those a particular plan supports is a matter for the plan, and providers change what they offer. Ask Aegon which options are available on this plan rather than assuming all three are.
Aegon also administers employer group pension schemes where death-in-service benefits may be provided separately. Check the employer's HR documents for details.
Aegon pension holders should complete an expression of wishes (nomination of beneficiary). Aegon considers it carefully but is not bound by it. That discretion is what currently keeps the fund outside the estate for inheritance tax — but only until 5 April 2027, as set out below.
Members can update the form through their Aegon online account or by contacting Aegon directly, and should do so after any significant life event.
See GOV.UK for the latest guidance on tax on a private pension you inherit.
From 6 April 2027 most unused pension funds and death benefits come into the estate for inheritance tax. HMRC's policy paper of 26 November 2025 confirms the change applies "regardless of whether the pension scheme administrators or scheme trustees have discretion over the payment of any death benefits", so the discretion described above will no longer keep the fund outside the estate. Death in service benefits payable from a registered pension scheme are excluded, but an unspent money purchase fund is not one of those.
The spouse, civil partner and charity exemptions are kept, so a fund passing to a surviving spouse or civil partner remains exempt. Personal representatives, not scheme administrators, are liable for reporting and paying any inheritance tax due, and can direct a scheme to withhold 50% of the benefit for up to 15 months while that is settled.
Read our full guide to pensions and inheritance tax from April 2027.
Without a nomination, Aegon uses its discretion and will typically pay 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.