Pensions query following husband passing.

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Hi, husband passed a few months ago now, I have been working through paperwork. He had a few small pensions which I stupidly presumed would pay out as cash payment. I received a letter from the first one yesterday letting me know theyll be a monthly pension. I am 50. Feels in poor form to be discussing finances but would benefit from the money. Is this the norm?

Do you know what sort of pensions they were- defined contribution or defined benefit? Had he bought an annuity?

I think they're defined contribution. No I don't think he was at an age where he could have bought an annuity yet, he was 51.

I’m sorry for your loss.

You could ask the first company if they would consider commuting the pension into a lump sum instead of a regular payment. There are rules to doing this so it may not be possible however.

Depends on what sort of pensions they are - one of my DH ones pays me £96 a month (he / I was too young to draw on it)

I don’t know the answer OP - I’m sorry for your loss . The best thing I think you can do is ring them up and ask what’s possible .

Or do a google search combined with the name of the provider to get at their own guidance - I tried ‘ what happens to pension pot on death before drawdown ‘ and it came up with various companies own guidance - aviva, Scottish widows etc

Just jumping on this to follow responses as I'm in the same situation albeit a little older than you...

Have you claimed the bereavement support payment from DWP? I haven't had the letter from them yet, but I had £2.5k put in my account from them last night plus £200 as well, so guess I might be getting that from them per month for a while. It was very easy to apply for online.

My late DH also had a collection of pensions.

For the defined contribution ones, I received the cash "pot", which I have put into a drawdown legacy pension and can drawdown as need, despite not being retirement age (after taking financial advice).

For the defined benefit ones I received a small life cover payment and a regular pension, equivalent to half of what he would have received at retirement. This probably varies according to the rules of the scheme.

Yes, I didnt think I'd be entitled to that but was. I think the £100 a month is for 18 months and £2500 lump sum which is helpful

DH had two small pensions, one died with him and the other I get £100 a month. I didn’t get a choice just was told that’s what it was. (They were annunities he’d taken already).

Just an update, I've spoken to the pension provider and it's a defined benefits pension. They have already sent it to the trustees to look at a lump sum payout. I would imagine with the administration of the pension it's possibly easier if they pay the lump sum, I'll see what they come back with. Many thanks everyone for your help

Glad to hear they’ve given you some clarity. If they offer you a choice of lump sum or monthly payments it might be worth taking some advice as to the better option- it’s easy to underestimate the value of a regular DB payment especially if it’s index linked.

At a guess that's 2.5for the funeral ,200 um a month , sorry for your loss, are you on universal credit no nastyness meant , untill you get sorted and if it applies you could get help with council tax for one person ,plus help with rent . Was the person who passed have a private pension as you
Would Be entitled in many cases of 50 per cent William dwp

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If you decide to take it as cash you will be asked to sign to say that you've taken independent financial advice. Remember any pension that you put into a legacy drawdown will be tax free when the payments are made.