What happens if I die with an annuity?
What happens if I die with an annuity? is a common question we are often asked here at Retirement Solutions, naturally because retirees want to know what will happen to their money. The basic rule is that an annuity is payable to you, the annuitant, for life. So, naturally when you die the annuity stops.
You can choose a guaranteed payment period with an annuity, so what happens if you die during the annuity guaranteed payment period? So, if you die, say four years after first drawing your annuity, if you have opted for a five-year guarantee, the remaining 12 months’ payments will be paid to your partner or your estate.
If you have purchased a joint life annuity and you die then your pension will continue to provide an annuity to your partner after you die.
What happens if I die with Income Drawdown?
What happens If I die with an income drawdown plan? Your remaining fund can be paid as a cash lump sum, subject to tax at 35%. You can name who you would like to receive it, although this will not be binding. The way your benefits are paid depends on whether funds are non-protected rights or protected rights, and whether you have any dependants when you die.
What happens if I die after age 75?
What happens if you die after age 75? If you’re taking an Alternatively Secured Pension (ASP), when you die your fund may be used to provide an income for your dependants. There’s no lump sum option available to them. If you die with no dependants, any remaining benefits will be paid to a charity of your choice (or one chosen by the ASP provider, if you don’t specify a choice).
What happens if I die is an important consideration for all retirees, if you are unsure then seek independent financial advice from a retirement specialist.
Related Posts :
