If DH dies do I have to take his pensions now?

[Nopreservatives]

DH is terminally ill, all sort of things going on in my head and sadly money is one of them.

He has an old final salary pension from a previous job and a money purchase scheme from his current job. I don't need the income now, I have a good job of my own and young adult DC, whilst still living at home, have decent jobs themselves. That money was for our retirement and possibly to held DC with house purchases idc.

Presumably if the final salary pension pays out early, as a widows pension the annual income will be reduced? If possible I'd like to leave it for when I retire.

It's the worst possible time to have to cash in his money purchase pension, with the stock market as it is. Can I leave it where it is? Or transfer it into a similar pension investment vehicle in my own name?

I know I'll have to take some professional advice, just trying to get an idea of what might be possible/usual.

No preservatives - I am very sorry and hope your husband will get some more quality time with you.

The final salary pension will depend on what the scheme rules say. The money purchase fund (I am assuming he has not taken any benefits as yet) can be passed on free of IHT.

There are some differences if your DH has reached the age of 75 and if his pension pots breach his Lifetime allowance.

No, he's only 54

It depends on the scheme rules. If he hasn't drawn it down it's possible you might get a lump sum, which you could then invest into your own pension.

But each scheme has its own rules.

I'm so sorry for your husband and all of you.

I'm so very sorry for you and your DH.

Can he transfer his final salary pension out into a self invested scheme? He would get a cash equivalent transfer value, which is calculated by the scheme and can then be invested by him. The pension scheme administration would be able to help him.

Unless DH is able to transfer out of the DB scheme, you'd receive the spouse's benefit as soon as it becomes payable. You could use it to make new pension contributions of your own if it was surplus to requirement while you are still working.

There are strong reasons why a transfer out may be in both of your best interests, but you must take proper advice from a regulated pension transfer specialist to be able to do this.

Hi ....you need to see an IFA as soon as you can...the DC scheme should pass to you as it is in a lump sum and you can leave this invested as it is now until you want to retire however the DB scheme will undoubtedly pay you a reduced widows pension (probably around 50% of what your husband would get ). As has been said you could transfer the value to a SIPP and if this is done prior to death you would then inherit the lump sum (the same as the DC scheme) which by the sounds of things would be much better for you.

It is one of the few times that it is deemed as best advice to transfer out of DB scheme but you will need to pay an IFA (it won’t be cheap) as it can’t be done yourself. It can take a while so starting the process ASAP is critical and make sure the adviser is independent !

No advice but I'm sorry you're going through this. I hope you and DH get to spend some more time together.

Thank you, yes I will get some advice.

Does anyone know what happens to his state pension? Is that just gone? A really comfortable planned retirement is now looking bit precarious.

State pension entitlement is not passed on to widows or dependents, but if your DH's entitlement is greater than yours you can apply for his National Insurance record to be used instead of your own.