If you die before you’re 75, your beneficiaries can normally receive your pension savings as a tax-free lump sum, as long as your total pension savings are less than the lump sum and death benefit allowance (currently £1,073,100). If you die after you’re 75, or if the payment is more than 2 years after the date of death, your beneficiaries will pay tax at their marginal rate on the amount paid.

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