Claiming Private & Workplace Pensions After Death UK 2025
Need help with death administration?
AI probate help, 24/7 emotional support, step-by-step guidance • £199 one-time
Deceased pension pots can be worth tens or even hundreds of thousands of pounds, yet many families don't know these pensions exist or how to claim them. Pensions don't automatically go through probate - each provider has its own claim process, beneficiary rules, and tax treatment.
This guide explains how to find all pensions the deceased held, understand what benefits are available, complete the claim process for each provider, determine who receives benefits, and navigate the tax implications.
Need help with death administration?
AI probate help, 24/7 emotional support, step-by-step guidance • £199 one-time
Types of Pensions and Death Benefits
Defined Contribution (Money Purchase) Pensions
Most modern workplace pensions and all personal pensions/SIPPs. Built from contributions that are invested to grow.
Typical death benefits:
- Full pension pot value paid as lump sum to beneficiaries
- If died under 75: Usually tax-free (must claim within 2 years)
- If died over 75: Taxed at beneficiary's marginal income tax rate (20/40/45%)
- Beneficiaries can take lump sum or draw down gradually (like inherited pension)
- Pot value can be £10,000-£500,000+ depending on contributions and investment growth
Examples: Workplace pensions from private employers, personal pensions, SIPPs, stakeholder pensions, NEST, Scottish Widows, Aviva pensions
Defined Benefit (Final Salary) Pensions
Promise to pay pension based on salary and years of service. Mostly public sector and older private sector schemes.
Typical death benefits:
- Lump sum: Usually 2-4× annual salary if died before retirement (e.g., £40K salary = £80-160K lump sum)
- Spouse/dependent pension: Typically 50% of member's pension for life
- Children's pension: Sometimes paid for dependent children (usually until age 18-23)
- Lump sums: Tax-free if under 75; taxed at 45% if over 75 (but schemes vary)
- Spouse pensions: Always taxable as income via PAYE
Examples: NHS Pension, Teachers' Pension, Civil Service Pension, Local Government Pension (LGPS), many older corporate final salary schemes
💡 Key Difference:
Defined contribution: You inherit the actual pot value (money in the account). Defined benefit: You inherit a promise to pay based on scheme rules (lump sum + ongoing pension). Defined benefit often more valuable if member worked there many years.
Finding All Pensions: Detective Work
Many people have multiple pension pots they've forgotten about. Average UK worker changes jobs 11 times - potentially 11 different pensions.
Search Deceased's Paperwork:
- Pension statements: Annual statements from providers
- Payslips: Show pension contributions and provider
- P60s: Annual tax certificates (list pension contributions)
- Bank statements: Payments to pension providers or from pension if in payment
- Employment contracts: Detail workplace pension arrangements
- Emails: Search inbox for pension provider names
Use Free Pension Tracing Service:
Government-run service to find lost pensions: www.gov.uk/find-pension-contact-details
- Free service - searches database of 200,000+ pension schemes
- Searches using deceased's name and National Insurance number
- Returns contact details for any matching schemes (not balances)
- You then contact providers directly to confirm membership and claim
- Can search for workplace pensions, personal pensions, SIPPs, even very old schemes
This service finds pensions you didn't know existed. Always use it - you may discover significant pension pots.
Contact Current and Past Employers:
Write to HR/payroll department of every employer deceased worked for (if known):
- Ask about workplace pension arrangements
- Request pension provider contact details
- Ask about any death-in-service benefits (lump sums paid by employer, not pension)
- Some employers maintain contact with pension scheme even if employee left years ago
Check Common Pension Providers:
If you have suspicions but no evidence, contact major providers directly:
- Large providers: Aviva, Legal & General, Scottish Widows, Standard Life, Royal London, Prudential, Phoenix Group
- Workplace schemes: NEST, The People's Pension, NOW: Pensions
- Public sector: NHS Pension, Teachers' Pension, Civil Service, Local Government (LGPS)
- They'll search records using name, DOB, NI number to see if member
Who Gets the Pension Death Benefits?
Critical: Pensions don't follow your will. Each pension scheme has its own rules and trustees decide based on:
1. Expression of Wish Form (Nomination)
Most important factor. Deceased should have completed form nominating who receives death benefits.
- Not legally binding but trustees nearly always follow it if valid
- Can nominate anyone: spouse, children, partner, charity, trust
- Can split between multiple people (e.g., 50% spouse, 25% each child)
- Should update regularly (divorce, remarriage, children born) - many forget
- If no form on file or very out of date, trustees have full discretion
Check if deceased completed nomination form. Contact provider to request copy of nomination on file.
2. Scheme Rules
Each scheme has rules about who can receive benefits:
- Spouse/civil partner: Nearly always entitled
- Children: Usually entitled, especially if dependent
- Financial dependents: Anyone financially relying on deceased
- Registered charities: Can usually be nominated
- Some schemes restrict payments to family only (can't nominate friends)
3. Trustees' Discretion
If no nomination or unclear situation, trustees decide based on:
- Financial dependency: Who relied on deceased for financial support
- Moral obligation: Who deceased would have wanted to provide for
- Circumstances: Financial needs of potential beneficiaries
- Deceased's intentions: Any evidence of wishes even without formal nomination
Trustees aim to pay to people deceased would want to support. They have discretion to override nomination if circumstances changed significantly (e.g., divorce not updated on form).
⚠️ What If Paid to Estate?
If trustees can't find suitable beneficiaries or scheme rules require it, death benefits paid to estate:
- Becomes part of probate - distributed per will/intestacy
- Subject to inheritance tax (whereas direct beneficiary payments usually aren't)
- Available to creditors if estate insolvent (whereas direct payments protected)
- Takes longer (need probate grant before payment)
Providers try to avoid paying to estate where possible - better for beneficiaries.
Claim Process: Step-by-Step
Step 1: Notify Provider of Death
Contact pension provider's bereavement team (contact details on statement or website):
- Provide: Full name, DOB, date of death, pension reference number
- Send copy of death certificate (certified copy acceptable initially)
- Your relationship to deceased and contact details
Timing: Do this ASAP, especially if pension in payment - stops overpayments you'd have to return.
Step 2: Provider Sends Claim Pack
Within 2-4 weeks, provider sends:
- Claim forms specific to that pension (each provider different)
- Information about death benefits available and who might be entitled
- List of documents required
- Tax forms for HMRC reporting
Step 3: Complete Claim Forms
Typical information required (varies by provider):
If claiming as spouse/partner:
- Your full details (name, DOB, address, NI number)
- Marriage certificate or civil partnership certificate
- Confirmation not remarried (some schemes stop pension if remarry)
- Bank details for payment
- ID (passport or driving license + proof of address)
If claiming as nominated beneficiary:
- Your relationship to deceased
- Evidence of financial dependency if relevant (bank statements, bills, letters)
- ID and proof of address
- Bank details for lump sum payment
- Tax forms completed
If benefits going to estate:
- Copy of will
- Grant of Probate (usually required before payment)
- Executor's details and ID
- Estate bank account details
Step 4: Provider Reviews and Decides
Trustees review claim and decide who receives benefits:
- Check nomination form on file (if any) and whether still appropriate
- Review financial dependency evidence
- Consider scheme rules and circumstances
- Make decision (usually within 4-8 weeks of complete forms)
- Write to confirm decision and tax treatment
If multiple claimants, trustees may split benefits between them or choose one. Their decision is usually final (can appeal to Pension Ombudsman if unreasonable).
Step 5: Receive Payment
Lump sum payments: Paid directly to beneficiary's bank account, usually 4-8 weeks after claim approved. Can be taken all at once or moved into drawdown pension.
Spouse/dependent pensions: Start within 1-3 months, paid monthly. Usually backdated to date of death. Taxed via PAYE like salary. Continue for beneficiary's lifetime (unless remarry if scheme rules say pension stops).
Estate payments: Paid to estate bank account once probate granted. Then distributed to beneficiaries per will.
Tax Treatment of Death Benefits
| Death Age | Defined Contribution Lump Sum | Defined Benefit Lump Sum | Spouse/Dependent Pension |
|---|---|---|---|
| Under 75 | Tax-free if paid within 2 years of death | Tax-free (most schemes) | Tax-free income for beneficiary |
| Over 75 | Taxed at beneficiary's marginal income tax rate (20/40/45%) | Usually taxed at 45% (but check scheme rules) | Taxed as income via PAYE (20/40/45% depending on total income) |
Key Tax Points:
- Age 75 is critical threshold - dying day before 75th birthday saves huge tax on defined contribution pensions
- Claim within 2 years: Defined contribution lump sums must be claimed within 2 years to be tax-free (if under 75)
- Spouse pensions always taxable: Even from under-75 deaths, spouse pensions are taxable income via PAYE
- Beneficiary's rate matters: If over 75, recipient pays tax at their marginal rate. If they're basic rate (20%), much better than higher rate (40/45%).
- Not subject to inheritance tax: Pension death benefits usually outside estate for IHT (major advantage)
Tax Planning Opportunities:
- If beneficiary has low income year, consider taking lump sum then (lower tax rate)
- Can spread drawdown over multiple tax years to stay in lower band
- Multiple beneficiaries can share pot (each gets their portion taxed at their rate)
- Spouse can move inherited pot into drawdown and take gradually rather than all at once
Common Issues and How to Handle Them
Problem: Pension kept paying after death
Solution: Notify provider immediately. Return overpayments promptly. Provider usually requests repayment from estate or deducts from death benefits. Don't spend money that isn't yours.
Problem: Can't find evidence deceased had pension
Solution: Use Pension Tracing Service. Contact all previous employers. Check bank statements for contributions or income. Don't give up - lost pensions are common and can be very valuable.
Problem: Nomination form very out of date (ex-spouse named)
Solution: Trustees have discretion to override outdated nomination. Provide evidence of current circumstances (divorce certificate, current family situation). Trustees usually pay to current spouse/dependents despite old form, but not guaranteed.
Problem: Provider unreasonably refusing or delaying claim
Solution: Make formal complaint to provider (internal disputes procedure). If not resolved within 8 weeks or you're unhappy with response, complain to Pension Ombudsman (free service, www.pensions-ombudsman.org.uk). Ombudsman can order provider to pay plus compensation for distress.
Problem: Multiple people claiming same benefits
Solution: Trustees decide based on evidence. All claimants submit evidence of dependency/relationship. Trustees may split between multiple people or choose one. Their decision is final unless unreasonable (can appeal to Ombudsman). Be honest and provide strong evidence.
You don't have to figure this out alone
Get expert guidance through every step of death administration—from probate to provider notifications—with compassionate AI support available 24/7.
AI probate prep tool
Calculates IHT, validates everything, prepares your application — saves £2,000-5,000 vs solicitor
24/7 AI emotional support
Industry-first companion for guidance and reassurance anytime
Complete contact database
Phone scripts and details for 60+ UK banks, utilities, and providers
Launch pricing • No subscription • All features included
Join families across the UK handling death admin with confidence • Takes 5 minutes to get started
You don't have to figure this out alone
Get expert guidance through every step of death administration—from probate to provider notifications—with compassionate AI support available 24/7.
AI probate prep tool
Calculates IHT, validates everything, prepares your application — saves £2,000-5,000 vs solicitor
24/7 AI emotional support
Industry-first companion for guidance and reassurance anytime
Complete contact database
Phone scripts and details for 60+ UK banks, utilities, and providers
Launch pricing • No subscription • All features included
Join families across the UK handling death admin with confidence • Takes 5 minutes to get started
Related Guides
You might also find these guides helpful
Life Insurance Claims After Death UK: How to Claim, Timeline & Process 2025
How to claim life insurance after death: required documents, claim timeline, beneficiary rights, trusts, disputed claims, and common rejection reasons.
How to Notify Banks After a Death UK: Complete Guide 2025
Step-by-step guide to notifying banks after a death in the UK. What documents you need, how to access funds before probate, joint accounts, funeral payment releases, and full timeline.
Joint Account When Spouse Dies: Instant Access (No Probate Needed!)
Good news: Joint accounts transfer automatically. Access funds immediately, no probate. Update name in 7 days. Full UK rights guide 2025.