Here’s a quirky little rule that makes you go “huh.” If you die while drawing a pension from a personal pot, the tax people sometimes hit your beneficiary with a big bill—unless you plan wisely. In many countries, if they don’t empty the account within five years, taxes can surge. It’s like a countdown timer on a game show: “Use the cash or lose it to the taxman!”
But some plans let them keep the money growing tax-free for decades if they treat it as their own pension. Naming a “successor beneficiary” is like passing the remote control to your kid.
What Happens to Your Pension When You Die? The UK Rules Most People Don
