It's important to understand what happens to your pension if you die. Here's what you and your family need to know.
Your pension doesn't form part of your estate
Currently, your pension sits outside your estate for inheritance tax purposes. This means it can be passed to your beneficiaries without being subject to inheritance tax. Note: This is changing from April 2027, when pensions will be brought into the inheritance tax regime.
If you've nominated beneficiaries
If you've nominated beneficiaries in the app, your pension will typically be paid to them in the proportions you specified. Your beneficiaries can usually choose to:
Take the pension as a lump sum
Transfer it into their own pension
If you haven't nominated beneficiaries
If you haven't nominated anyone, the scheme administrator will decide who receives your pension. This is usually your next of kin, but the decision is at their discretion. This can cause delays and may not reflect your wishes – which is why we recommend nominating beneficiaries.
Tax implications
The tax treatment depends on your age at death:
Death before age 75: Your beneficiaries usually receive the pension tax-free
Death after age 75: Withdrawals by your beneficiaries are taxed at their marginal income tax rate
What your family should do
If a Chest customer dies, their family should contact us at hello@joinchest.com with:
The customer's name and account details (if known)
A copy of the death certificate
Contact details for the person handling the estate
We'll guide them through the process of claiming the pension.
Still need help?
If you have questions about what happens to your pension, contact us at hello@joinchest.com.