If you were to pass away before retirement and have a personal pension, then the full amount of your personal pension is usually paid as a lump sum to your beneficiaries, whether that be your wife, children or whomever you choose. However, if you die after retirement, it’s not so clear how your pension will be paid out as it depends on how you have chosen to take your benefits. It’s important that your loved ones are protected, and that’s why you must take the time to understand how your pension benefits will be paid and taxed in the event of your death. As is always the case, your financial advisor can give you a much clearer picture of how your specific pension arrangement will be handled when you pass, and you can then decide whether you’re happy or need any changes.