What Happens to NOW: Pensions When Someone Dies?

Does a NOW: Pensions Account Require Probate?

In most cases, no. NOW: Pensions operates as a discretionary trust. The trustees can pay the death benefit directly to the nominated beneficiary without a Grant of Probate, because the funds fall outside the deceased's estate.

If there is no nomination and NOW: Pensions cannot identify a suitable beneficiary, the pot may be paid to the estate. In that case, probate may be required before the funds are distributed.

What Death Benefits Does NOW: Pensions Pay?

NOW: Pensions is a defined contribution scheme, so the death benefit is the full value of the member's pension pot at the date of death. This includes all contributions (employee, employer, and government tax relief) plus investment returns. The amount will vary depending on how long the member was enrolled and how much was contributed.

The death benefit is paid as a lump sum. NOW: Pensions does not provide an ongoing survivor's pension. Some employers also provide a separate death-in-service benefit — check with the employer's HR team if you think this may apply.

Note that NOW: Pensions has historically had challenges with administration and customer service. If you experience delays or difficulties contacting them, you can escalate to the Pensions Ombudsman if necessary.

How to Claim NOW: Pensions Death Benefits

1. Contact NOW: Pensions. Visit nowpensions.com or contact their bereavement team. You will need the member's NOW: Pensions member number or national insurance number.
2. Provide a certified copy of the death certificate.
3. Confirm the nomination status. NOW: Pensions will check whether a valid nomination is on file. If so, they will contact the nominated beneficiary.
4. Complete the claim documentation. The nominated beneficiary or next of kin will need to provide identification and bank details.

The Nomination Form: Why It Matters

NOW: Pensions members can register a nomination of beneficiary through their online member account. This tells the trustees who the member would like to receive their pension pot. The trustees have discretion and are not legally bound by this nomination, but they will give it significant weight in normal circumstances.

If no nomination is registered, NOW: Pensions trustees will use their discretion to determine the most suitable recipient. This process can take longer and may result in funds being paid to the estate if no suitable beneficiary is identified.

Tax on NOW: Pensions Death Benefits

• Death before age 75: The lump sum payout is normally tax-free for the recipient, subject to the available allowances.
• Death at age 75 or over: The lump sum is taxed as income for the recipient at their marginal rate. This can result in a significant tax charge if the pot is large or the recipient already has other income.

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

IHT and NOW: Pensions From April 2027

Currently, NOW: Pensions pots fall outside the estate and are not subject to inheritance tax. From 6 April 2027, the government proposes to bring unspent DC pension funds within the scope of IHT. This means the pot value may be included when calculating whether inheritance tax is due on the estate.

Read our full guide to pensions and inheritance tax from April 2027 and understand the inheritance tax basics before that date.

If There Is No Nomination Form

Without a nomination, NOW: Pensions trustees will use their discretion. They may pay to a surviving spouse, civil partner, or financially dependent person. If no suitable beneficiary is found, the pot may be paid to the estate and become subject to the probate process.

Related Guides

• Pensions and Inheritance Tax from April 2027
• Inheritance Tax Guide 2026/27
• Complete UK Probate Guide
• What to Do When Someone Dies
• Estate Administration Checklist
• Notifying Banks After a Death
• Applying for Probate
• Probate Threshold 2026/27
• Inheritance Tax Basics
• The 7-Year Gifting Rule