Cathedral Financial Consultants Limited, advising clients since 2003.

What happens to my pension when I die?

In Ireland, what happens to your pension when you die depends on the type of plan you have and who you’ve named to receive it. Our guide explains, how benefits may be paid (lump sums, dependants’ pensions, ARFs) and what tax rules could apply—so you can make informed choices and protect the people you care about. If you’re unsure, we’ll help you review your options and keep your beneficiary details up to date.

What’s in this guide?

What happens to your pension when you die?

Who can benefit from my pension after I die?

What happens to your private pension when you die?

What happens if I die before the pension age?

What happens if I die after the pension age?

What about Inheritance Tax on Pensions?

Nominating a beneficiary for my pension

Pension tracing service for deceased

Useful Links / Documents

Common Questions about Occupational Pensions in Ireland (FAQ)

Relevant articles

Occupational pensions

How to find old pensions

Tracing lost pensions

Personal pensions

View all articles…

What happens to your pension when you die?

It depends on the type of pension you have and the scheme’s rules. Those rules determine who can receive the benefits and in what form if you pass away before drawing your pension.

Personal Pensions (Ireland)

If you hold a personal pension (e.g., a Personal Pension Plan/RAC), the full gross value of your fund is typically paid as a lump sum to your estate. In some cases, that lump sum can be used to top up a spouse’s/civil partner’s pension instead.

Tax treatment (high-level guide)

Spouse / Civil Partner: Generally exempt from Capital Acquisitions Tax (CAT) on inheritance.
Children: The lump sum may be subject to CAT, depending on thresholds and any applicable reliefs.
Cohabiting Partner: May be liable for CAT depending on thresholds and individual circumstances (cohabitants don’t receive the same exemptions as spouses/civil partners).

Tax thresholds and reliefs can change, and scheme rules vary. For personal advice on your situation, consider a regulated advisor and keep your beneficiary details up to date.

Workplace pension schemes & death-in-service (Ireland)

If you’re in a workplace/occupational pension and die while still employed, what’s paid out depends on your scheme rules and Revenue limits.

In general:

A lump sum can be paid to your estate/beneficiaries, usually up to 4× your salary plus certain employee contributions (previous lump sums from earlier employments are counted toward this limit).
If the total fund is above the lump-sum cap, the balance is typically used to provide a spouse’s/dependant’s pension (or similar benefit), as set by the scheme.
Some schemes have qualifying periods (e.g., death within the first two years) that can affect employer-paid benefits—check your plan booklet.
If you have multiple workplace pensions from different employers, each scheme will assess and pay death benefits under its own rules, even if you haven’t consolidated them.

Tip: Make sure your expression of wishes/beneficiary form is up to date—trustees consider it when deciding how to distribute benefits.

Pensions and death after retirement

Your options at retirement shape what happens on death. Most people either buy an annuity or keep funds invested in an Approved Retirement Fund (ARF).

Annuities

An annuity converts a lump sum into a guaranteed income. What happens on death depends on the annuity you chose:

Single-life: income stops on your death (unless a guaranteed period or value protection was selected).
Joint-life: continues an income to a spouse/dependant (often a percentage of your annuity).
Enhanced annuity: offers higher income based on health/lifestyle, but death benefits follow the single/joint terms chosen.
Guaranteed period: payments continue to beneficiaries for the remaining guarantee term if you die within it.

Approved Retirement Funds (ARFs)

With an ARF, the remaining fund can pass to your spouse/civil partner or other beneficiaries:

Spouse/Civil partner: can usually inherit or transfer to their own ARF without an immediate tax charge; future withdrawals are taxed as income.
Other beneficiaries (incl. children): tax treatment varies by relationship and age, and by current Revenue rules.

Important: Scheme rules and tax treatment can change, and personal circumstances matter. For clear guidance on your benefits and beneficiaries, review your plan documents and consider speaking with a regulated adviser.

Who can benefit from my pension after I die?

Who gets your pension is decided by the scheme’s rules, plus the beneficiaries and dependants you’ve named.

Beneficiaries
These are the people (or your estate) you nominate to receive benefits. They don’t have to be financially dependent on you. Common beneficiaries include your spouse/civil partner, children, other nominated individuals, or your estate if no nomination applies.

Dependants
Dependants are those financially reliant on you (for example, a spouse/civil partner, children—often up to a certain age or while in full-time education—or someone else who depends on you). Some schemes give specific rights or priorities to dependants.

Keep your expression of wishes/beneficiary form up to date. It helps trustees/admins understand your intentions when distributing any death benefits.

What happens to your private pension when you die?

Approved Retirement Funds (ARFs) — what happens on death (Ireland)

If your pension is in an ARF, the remaining balance can pass to your beneficiaries (e.g., spouse/civil partner, children, or others) under Revenue rules.

In general:

Spouse/Civil partner: The ARF can usually be inherited or transferred to an ARF in their own name with no immediate tax charge. Future withdrawals are taxed as income in their hands.
Other beneficiaries (incl. children): The tax treatment varies by relationship, age and current Revenue rules. Some inheritances may face income tax and/or Capital Acquisitions Tax (CAT).

ARFs make it straightforward for your beneficiaries to receive the remaining fund, but the exact tax outcome depends on who inherits and your personal circumstances. Keep your beneficiary nominations up to date and seek advice for tailored guidance.

What happens if I die before the pension age?

If you die while still employed and a member of your employer’s pension scheme, any death benefits are paid under the scheme’s rules and Revenue limits.

In general:

A cash lump sum of up to four times your salary, plus allowable employee contributions, may be paid to your estate/beneficiaries. (Previous employment lump sums count toward this overall limit.)
If your total fund is above the lump-sum cap, the balance is typically used to provide a spouse’s/dependant’s pension.
Some schemes may withhold employer contributions if death occurs within a short initial period (often within two years of joining)—check your plan booklet.
If you have pensions with multiple employers, each scheme will assess and pay benefits under its own rules—even if you haven’t transferred or consolidated them.

Death-in-Service cover:
This is a separate employer benefit that can pay an additional lump sum on death while employed. It’s not always automatic or guaranteed, and terms vary by employer—so it’s usually wise to join the pension scheme and any linked death-in-service cover offered.

What happens if I die after the pension age?

What happens to an annuity when you die (Ireland)

It depends on the options you chose when setting up the annuity:

Single-life annuity (no guarantees):
Payments stop on your death.
Guaranteed period (e.g., 5–10 years):
If you die within the guarantee term, payments continue to your estate/beneficiary until the end of that term.
Joint-life annuity:
A selected percentage (often 50%–100%) continues to your spouse/civil partner for the rest of their life.
Value/capital protection (if selected):
A lump sum may be payable on death, subject to product limits and tax rules.

Tax note: Any death benefits or continuing payments are subject to Irish tax rules and your policy’s terms.

Unsure which options you have? We can review your policy and confirm what would be paid to your beneficiaries.

Approved Retirement Funds (ARFs) — what happens on death (Ireland)

If your pension is in an ARF, the remaining balance can pass to your beneficiaries (e.g., spouse/civil partner, children, or others) under Revenue rules.

In general:

Spouse/Civil partner: The ARF can usually be inherited or transferred to an ARF in their own name with no immediate tax charge. Future withdrawals are taxed as income in their hands.
Other beneficiaries (incl. children): The tax treatment varies by relationship, age and current Revenue rules. Some inheritances may face income tax and/or Capital Acquisitions Tax (CAT).

ARFs make it straightforward for your beneficiaries to receive the remaining fund, but the exact tax outcome depends on who inherits and your personal circumstances. Keep your beneficiary nominations up to date and seek advice for tailored guidance.

What about Inheritance Tax on Pensions?

Inheritance tax on pensions (Ireland) — the essentials

CAT at a glance:
Inheritances can fall under Capital Acquisitions Tax (CAT) at the standard rate (currently 33%) once tax-free thresholds are exceeded. Thresholds differ by relationship group (e.g., children vs. other relatives) and change from time to time—always check the latest limits.
Spouse / civil partner:
Benefits passing to a spouse or civil partner are generally exempt from CAT. Where a fund transfers to them (or into their own ARF/PRSA), there’s usually no CAT at transfer—any tax typically arises only when they take income or withdrawals.
PRSA:
On death, a PRSA can usually pass to a spouse/civil partner without CAT at transfer (often by moving into their own PRSA/ARF). Future withdrawals are then taxed as income in their hands.
ARF:
A spouse/civil partner can inherit an ARF or transfer it to an ARF in their name with no immediate CAT; later drawdowns are taxed as income. For children, broad rules often mean under-21s face CAT (no income tax), while 21+ face income tax (no CAT). Other beneficiaries may face CAT and/or income tax, depending on circumstances.
Workplace/Executive schemes (death-in-service):
Many schemes allow a tax-free lump sum up to a Revenue cap (commonly up to four times final remuneration, adjusted for previous lump sums). Any excess may provide a spouse/dependant’s pension or follow scheme rules.
Revenue exemptions:
Specific exemptions can apply to payments to a spouse/civil partner, qualifying children, and charities.

This is a high-level guide. Tax treatment depends on product type, scheme rules, your relationship to the beneficiary, and current Revenue guidance. For personal advice, review your policy documents and speak with a regulated adviser.

Nominating a beneficiary for my pension

You can ask your pension provider to record who you’d like to receive benefits if you die. The process and payout depend on the type of pension and your scheme’s rules, but most private and workplace plans accept an Expression of Wishes / Nomination of Beneficiaries form.

1) Know your pension type

Defined Contribution (Personal Pension / PRSA):
If you die before drawing benefits, the fund is usually payable as a lump sum. You can nominate anyone (spouse/partner, children, other relatives, a friend, or a charity) to receive it—subject to scheme and tax rules.
Defined Benefit (Final Salary):
Death benefits are typically set by the scheme rules (e.g., a spouse/dependant’s pension rather than a cash lump sum).
State Pension:
Generally stops on death; in some cases a survivor’s benefit may be available to a spouse/civil partner under social welfare rules.

2) How to make a nomination

Ask your provider or HR/trustees for an Expression of Wishes / Nomination form.
List your beneficiaries and the percentages you want each to receive (e.g., 50% partner, 50% child).
Return the form to your provider/trustees and keep a copy with your records.

3) Important considerations

Trustee discretion:
Nominations guide the trustees but are not always legally binding; trustees must follow scheme rules and consider your circumstances.
Keep it up to date:
Review after major life events—marriage, separation/divorce, new child, bereavement, moving job.
Tax treatment:
Payments to a spouse/civil partner are often exempt from CAT at transfer; other beneficiaries may face inheritance tax and/or income tax depending on the product and relationship.
No nomination on file:
Benefits may be paid to your estate, which can create delays and may affect tax.

Need help checking your scheme rules or completing the form? We can review your policy, confirm your options, and make sure your nomination reflects your wishes.

Pension tracing service for deceased

Looking to trace a pension for someone who is diseased? This is possible to do but requires some specific information as effectively, you’re tracing a pension for someone else, not yourself so differs somewhat from the traditional pension tracing route.

Speak with one of our advisors today to begin the process of finding a pension for someone deceaced.

Useful Links / Documents

Find your old Workplace Pensions

Sign-up and find all of your pensions.

Common Questions about Occupational Pensions in Ireland (FAQ)

If my spouse dies do I get their state pension?

You don’t inherit a State Pension. When someone dies, their State Pension stops.
However, you may qualify for a Bereaved Partner’s (Contributory) Pension if you—or your late spouse/civil partner—have enough PRSI contributions. In some cases, long-term cohabiting partners may also qualify, subject to specific conditions.

Good to know

A short six-week continuation of the deceased person’s social welfare payment may be payable.
Overlap rules apply: you generally can’t receive two full primary payments at once (e.g., your own State Pension and a full bereaved partner’s payment).
Other supports may be available depending on your situation.

How long is a pension paid after death?

State Pension (Department of Social Protection)

Stops on the date of death.
A short six-week continuation of the deceased person’s social-welfare payment may be payable to a surviving spouse/civil partner/estate.

Workplace & Private Pensions

It depends on the product and options chosen:

Before retirement (active or deferred member):
Usually a lump-sum death benefit (and sometimes a spouse/child pension) paid under scheme rules—there’s no ongoing “salary-like” payment unless the scheme provides a dependant’s pension.
Annuity in payment:
- Single-life, no guarantee: payments stop at death.
- With guarantee (e.g., 5–10 years): payments continue only until the end of the guarantee term.
- Joint-life: a chosen percentage (e.g., 50%–100%) continues to the spouse/civil partner for their lifetime.
ARF/AMRF (or vested PRSA):
There’s no continuation of the same payment; the remaining fund passes to beneficiaries. A spouse/civil partner can usually take it into an ARF in their name and then draw income as needed.

Practical tips

Notify the pension provider/trustees promptly; overpayments after the date of death must be repaid.
Check the beneficiary/Expression of Wishes on file and the scheme booklet for exact death-benefit terms.
Tax and timelines vary by product and relationship—if in doubt, ask a regulated adviser to confirm what applies in your case.

How do I assign my pension to my chosen beneficiary?

It depends on your pension type, but the process is straightforward. Here’s a simple checklist you can use for most Irish pensions.

1) Identify your pension type

Personal Pension / PRSA: You normally nominate beneficiaries with your provider.
Workplace/Occupational scheme: You complete an Expression of Wishes/Nomination for the scheme trustees.
ARF / Vested PRSA: You can name a spouse/civil partner ARF successor and other beneficiaries.
Annuity: Death benefits depend on options chosen at purchase (e.g., joint-life or guarantee period).
State Pension: Not assignable; it generally stops on death (separate survivor benefits may apply).

2) Complete the right form

Ask your provider, HR, or trustees for an Expression of Wishes / Nomination of Beneficiaries form (or update it online).
List each beneficiary and allocate percentages (e.g., 60% spouse, 40% child).
Sign, date, and return the form; keep a copy with your records.

3) Understand trustee/provider discretion

In occupational schemes, nominations guide trustees but may not be legally binding—trustees must follow the scheme rules and consider your circumstances.
Personal pensions/PRSAs and ARFs generally follow your recorded nomination/instruction, subject to product terms.

4) Keep it up to date

Review after marriage, separation/divorce, new child, bereavement, moving job, or if a beneficiary’s details change.

5) Consider tax & minors

Spouse/civil partner often enjoys favourable tax treatment; others may face CAT (inheritance tax) and/or income tax, depending on the product and relationship.
For children/minors, consider naming a trustee or using a will to manage how benefits are held.

6) Tell someone and tidy the paperwork

Share where your policy numbers and provider contacts are kept.
Make sure your will aligns with your pension nominations.
If you have multiple pensions, update each one—nominations don’t carry across providers.

Need help? We can check your scheme type, supply the correct forms, and make sure your nominations reflect your wishes and current rules. Contact one of our Financial Advisors, today.

Does my spouse or civil partner have to pay inheritance tax on my pension if I die?

Generally, no. Inheritances between spouses/civil partners are exempt from Capital Acquisitions Tax (CAT).
How it works by product:

ARF / vested PRSA: Can usually be transferred to your spouse/civil partner’s ARF/PRSA with no CAT and no income tax at transfer. Any future withdrawals are taxed as income in their hands.
PRSA / Personal Pension (pre-retirement): Death benefits passing to a spouse/civil partner are typically CAT-exempt; exact mechanics depend on the contract.
Workplace schemes (death-in-service): A lump sum may be payable (within Revenue limits). Amounts to a spouse/civil partner are generally CAT-exempt; excess funds may provide a dependant’s pension per scheme rules.

Tax and scheme rules can change, and specific plans differ. For clarity on your situation, check your policy/scheme booklet or speak with one of our Regulated Financial Advisers, today.

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