Non-State Pension and Providing for Dependents

If you are worried about failing to provide for your dependents when you retire, you should consult an independent financial advisor. You may be entitled to additional State Pension benefit known as the dependent increase. This is equal to the Wife's Pension and currently set at £52.30 a week. For more information on dependent increases, contact the Pension Service on 0845 606 0265. For more information on what help is available for dependents from the state service, see State Pension and providing for dependents.

Your dependents may be entitled to a payment from your pension scheme provider on your death. Both entitlement and the amount to which they are entitled will depend on your age, pension scheme and whether or not you had begun claiming your pension at the time of your death. You may be able to ensure protection of your dependents by arranging to nominate them to receive death benefits from your pension scheme if you die; see Pension in event of a Death. You can also protect your survivors by purchasing a guarantee or pension protection annuity with your pension fund; these annuities continue to pay a pension, or pay a lump sum, after your death. For more details see Types of annuity.

If you are concerned about the financial security of your loved ones in the event of your death, consider paying for the assistance of an independent financial advisor. They will be able to advise you on how best to protect your savings against inheritance tax, and how to ensure your dependents have enough income when you are no longer able to support them. Ask your pension scheme provider for details of the way in which your dependents would benefit if you were to die before or after retirement, and ensure that you have informed your dependents of the people they will need to contact in the event of your death.

See also Inheritance Tax.