The tax benefits for defined contribution personal pensions mean that they are a particularly good savings vehicle for leaving money to family and dependants. What therefore would the implications of reforms be for pension-holders who do die under their retirement age and wish to leave behind funds for dependents? Some in the pensions industry have commented that changes may become a hindrance to people trying to provide for their family, or indeed they may incentivise pension-holders to take their tax-free cash lump sum earlier than perhaps they would ordinarily. In this article, we consider the alternative option of group life assurance that employers can (and indeed already do) provide employees in respect of death benefits and their tax treatment.
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About Emma Holder
About Eleanor Hart
Eleanor advises on a broad variety of pension matters, both transactional and general advisory, acting for trustees and corporate sponsors. She has extensive experience advising clients on the pension and employment aspects of acquisitions and disposals (both UK and cross-border). She has been involved in numerous high-profile deals with complex pension aspects as well as innovative pension restructurings, including the first ever pensions deficit for equity swap. Eleanor is a member of the Association of Pension Lawyers and is currently on the Education and Seminars Committee.