What happens to my annuity income when I die?

Although The People’s Pension does not offer a guaranteed income or annuity product, there are a number of options available to you when you set up an annuity with a different provider. If you don’t select any of the following options, your annuity payments won’t continue in the event of your death:

  • Guaranteed payment period – This provides a guaranteed period over which the annuity will be paid. This is normally over 5 or 10 years, but there’s no limit on the guarantee period you choose. The annuity will continue to pay over this guaranteed period if you die during this initial term. However, should you die after the guarantee period ends, the annuity income will stop.
  • Joint life – You can opt for a joint life annuity, which provides a slightly lower income initially but payments will continue to your dependant after you die or for a guaranteed period.
  • Value/capital protection (not all annuity providers offer this option) – This option provides a lump sum of any unpaid annuity income in the event of your death. If you die before age 75, any lump sum payment will be paid tax free. If you die age 75 or over any lump sum due will be taxable at your beneficiary’s highest tax rate.



Please speak to your adviser for more information on these options. If you don’t already have an adviser, you can find one on the Unbiased website. Please note an adviser may charge for their advice.

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