Cathedral Financial Consultants Limited, advising clients since 2003.

What happens to my pension when I die?

This guide explains how your benefits might be paid — for example as a lump sum, a pension for your spouse or dependants, or through an Approved Retirement Fund (ARF).

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?

The outcome depends on the type of pension you have and the specific rules of your scheme. These rules set out who can receive benefits and how they are paid if you die before you start drawing your pension.

Personal Pensions (Ireland)

If you have a personal pension (for example, a Personal Pension Plan or Retirement Annuity Contract (RAC)), the entire gross value of your fund is generally paid as a lump sum to your estate. In certain situations, this amount can instead be used to increase a spouse’s or civil partner’s pension benefits.

Tax Treatment (Overview)

Spouse / Civil Partner: Usually exempt from Capital Acquisitions Tax (CAT) on inherited pension benefits.
Children: The lump sum may be liable to CAT, depending on available thresholds and reliefs.
Cohabiting Partner: May also be subject to CAT, as cohabitants do not qualify for the same exemptions as spouses or civil partners; liability depends on individual circumstances and thresholds.

Tax thresholds and available reliefs may change over time, and pension scheme rules can differ. For advice tailored to your circumstances, you should consult a regulated financial adviser and ensure your beneficiary information is kept up to date.

Workplace Pension Schemes & Death-in-Service (Ireland)

If you’re a member of a workplace (occupational) pension scheme and die while still employed, the benefits payable will depend on your scheme’s rules and Revenue limits.

Typically:

A lump sum may be paid to your estate or nominated beneficiaries, commonly up to four times your salary, plus certain employee contributions. (Any similar lump sums received from previous employments are included when calculating this limit.)
If the overall fund exceeds the permitted lump-sum limit, the remaining balance is generally used to provide a spouse’s or dependant’s pension, or a comparable benefit, in line with scheme rules.
Some schemes apply qualifying periods (for example, death within the first two years of service), which may restrict employer-funded benefits. Check your scheme booklet for details.
If you have pensions with more than one employer, each scheme will calculate and pay death benefits separately, even if the pensions have not been consolidated.

Tip: Keep your expression of wishes/beneficiary nomination form up to date, as trustees will usually take this into account when deciding how benefits are distributed.

Pensions & Death After Retirement

The choices you make at retirement influence what happens to your pension benefits on death. Most retirees either purchase an annuity or transfer funds to an Approved Retirement Fund (ARF).

Annuities

An annuity converts your pension fund into a guaranteed income. Death benefits depend on the type selected:

Single-life annuity: Payments stop on your death, unless you selected a guaranteed period or value protection.
Joint-life annuity: Continues paying an income (often a percentage of your original annuity) to a spouse or dependant after your death.
Enhanced annuity: Provides a higher income based on health or lifestyle factors, but death benefits follow the single-life or joint-life structure chosen.
Guaranteed period option: If you die within the guaranteed term, payments continue to your beneficiaries for the remainder of that period.

Approved Retirement Funds (ARFs)

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

Spouse/Civil Partner: Can generally inherit the ARF or transfer it into their own ARF without an immediate tax charge. Future withdrawals are taxed as income.
Other beneficiaries (including children): Tax treatment depends on their relationship to you, their age, and current Revenue rules.

Important: Pension scheme rules and tax legislation can change, and individual circumstances vary. To fully understand your entitlements and beneficiary options, review your plan documentation and consider speaking with a regulated financial adviser.

Who can benefit from my pension after I die?

Who receives your pension benefits is determined by your scheme’s rules, along with the beneficiaries and dependants you have identified.

Beneficiaries

Beneficiaries are the individuals (or your estate) that you formally nominate to receive your pension benefits. They do not need to be financially dependent on you. Typical beneficiaries include a spouse or civil partner, children, other named individuals, or your estate if no valid nomination is in place.

Dependants

Dependants are people who are financially dependent on you. This may include a spouse or civil partner, children (usually up to a certain age or while in full-time education), or another person who relies on you financially. Some pension schemes give dependants specific rights or priority when distributing death benefits.

It’s important to keep your expression of wishes/beneficiary nomination form up to date, as trustees or administrators will consider it when deciding how any death benefits are paid.

What happens to your private pension when you die?

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

If your pension savings are held in an Approved Retirement Fund (ARF), any remaining balance can pass to your beneficiaries (such as a spouse/civil partner, children, or other named individuals) in line with Revenue rules.

Generally:

Spouse / Civil Partner: The ARF can usually be transferred into their own name or inherited directly without an immediate tax liability. Any future withdrawals they make are taxed as income in their hands.
Other beneficiaries (including children): The tax treatment depends on factors such as their relationship to you, their age, and current Revenue legislation. In some cases, benefits may be subject to income tax and/or Capital Acquisitions Tax (CAT).

ARFs can provide a flexible way for beneficiaries to receive any remaining pension funds. However, the precise tax position will depend on who inherits and their individual circumstances. Make sure your beneficiary nominations are current and consider seeking professional advice for guidance specific to your situation.

What happens if I die before the pension age?

If you die while still employed and an active member of your employer’s pension scheme, any death benefits will be paid in line with the scheme’s rules and Revenue limits.

Typically:

A lump sum of up to four times your salary, plus allowable employee contributions, may be paid to your estate or nominated beneficiaries. (Any lump sums received from previous employments are included when calculating this overall limit.)
If the total value of your pension fund exceeds the permitted lump-sum cap, the remaining balance is generally used to provide a pension for a spouse or dependant.
Some schemes may restrict employer-funded benefits if death occurs within an initial qualifying period (often within the first two years of joining). Check your scheme booklet for specific details.
If you have pension benefits with more than one employer, each scheme will assess and pay death benefits separately, even if you have not consolidated them.

Death-in-Service Cover

Death-in-service benefit is a separate employer-provided arrangement that may pay an additional lump sum if you die while employed. It is not automatically included in all cases, and terms vary by employer. For that reason, it is generally advisable to join your employer’s pension scheme and any associated death-in-service cover where available.

What happens if I die after the pension age?

What happens to an annuity when you die (Ireland)

What is paid after your death depends on the options you selected when you set up your annuity:

Single-life annuity (no guarantees):
Payments end when you die.
Guaranteed period (for example, 5–10 years):
If you die during the guaranteed term, payments continue to your estate or nominated beneficiary until the end of that period.
Joint-life annuity:
An agreed percentage of your income (commonly 50%–100%) continues to your spouse or civil partner for the rest of their lifetime.
Value or capital protection (if chosen):
A lump sum may be paid on death, subject to product conditions and applicable tax rules.

Tax note: Any ongoing payments or lump sums are subject to Irish tax legislation and the specific terms of your policy.

If you’re unsure which options apply to your annuity, a policy review can confirm what benefits would be payable to your beneficiaries.

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

If your pension is held in an Approved Retirement Fund (ARF), any remaining balance can pass to your beneficiaries (such as a spouse/civil partner, children, or other named individuals) in accordance with Revenue rules.

Generally:

Spouse / Civil Partner:
The ARF can usually be transferred into their own name or inherited directly without an immediate tax charge. Any withdrawals they make in the future are taxed as income.
Other beneficiaries (including children):
Tax treatment depends on factors such as their relationship to you, their age, and current Revenue rules. In some cases, benefits may be subject to income tax and/or Capital Acquisitions Tax (CAT).

ARFs offer flexibility in passing on remaining pension funds, but the precise tax outcome depends on who inherits and their individual circumstances. Ensure your beneficiary nominations are up to date and seek professional advice for guidance tailored to your situation.

What about Inheritance Tax on Pensions?

Inheritance tax on pensions (Ireland) — Key Points

Capital Acquisitions Tax (CAT) in Brief:
Pension death benefits may be subject to Capital Acquisitions Tax (CAT) at the standard rate (currently 33%) once the relevant tax-free threshold is exceeded. Thresholds vary depending on the relationship between the deceased and the beneficiary (for example, children have a different threshold to other relatives) and can change over time, so it’s important to check the most up-to-date limits.
Spouse / Civil Partner:
Benefits passing to a spouse or civil partner are generally exempt from CAT. Where a pension fund transfers to them — including into their own ARF or PRSA — there is typically no CAT at the point of transfer. Tax usually arises only when they draw income or make withdrawals, which are taxed as income in their hands.
PRSA (Personal Retirement Savings Account):
On death, a PRSA can normally transfer to a spouse or civil partner without triggering CAT at transfer, often by moving into their own PRSA or ARF. Any subsequent withdrawals are taxed as income.
ARF (Approved Retirement Fund):

A spouse or civil partner can inherit an ARF or transfer it into their own ARF without an immediate CAT liability. Future withdrawals are taxed as income.

For children, the broad position is often:
- Under age 21: liable to CAT (but not income tax).
- Age 21 or over: subject to income tax (but not CAT).
Other beneficiaries may face CAT and/or income tax, depending on their relationship to the deceased and current Revenue rules.
Workplace / Executive Pension Schemes (Death-in-Service):
Many occupational schemes provide for a tax-free lump sum on death, subject to Revenue limits — commonly up to four times final remuneration, adjusted for any previous lump sums received. Any amount above this cap may be used to provide a spouse’s or dependant’s pension, or otherwise paid in accordance with the scheme’s rules.
Revenue Exemptions:
Certain exemptions may apply for payments to a spouse or civil partner, qualifying children, and registered charities.

This overview is intended as a general guide. The tax treatment of pension death benefits depends on the product type, scheme rules, the beneficiary’s relationship to you, and current Revenue legislation. For advice tailored to your circumstances, review your policy documentation and consult a regulated financial adviser.

Nominating a beneficiary for my pension

You can instruct your pension provider to note who you would like to receive your benefits in the event of your death. The exact process — and how any benefits are paid — will depend on the type of pension you hold and the rules of your scheme. Most private and occupational pensions provide an Expression of Wishes or Nomination of Beneficiaries form for this purpose.

1) Understand Your Pension Type

Defined Contribution (Personal Pension / PRSA)If you die before taking your retirement benefits, the remaining fund is generally paid as a lump sum. You can usually nominate any individual or organisation (such as a spouse/partner, children, relatives, a friend, or a charity), subject to scheme conditions and tax rules.

Defined Benefit (Final Salary)

Death benefits are determined by the scheme rules and commonly provide a spouse’s or dependant’s pension, rather than a once-off lump sum payment.

State Pension

The State Pension normally ceases on death. However, in certain cases, a survivor’s payment may be payable to a spouse or civil partner under social welfare legislation.

2) How to Make a Nomination

Request an Expression of Wishes / Nomination form from your pension provider, HR department, or scheme trustees.
Name your chosen beneficiaries and specify the percentage share each should receive (for example, 50% to your partner and 50% to your child).
Submit the completed form to your provider or trustees and retain a copy for your own records.

3) Key Considerations

Trustee Discretion

Your nomination provides guidance but is not always legally binding. Trustees must apply the scheme rules and consider your circumstances when deciding how to distribute benefits.

Keep It Updated

Review your nomination following significant life events such as marriage, separation or divorce, the birth of a child, bereavement, or a change of employment.

Tax Implications

Benefits paid to a spouse or civil partner are often exempt from Capital Acquisitions Tax (CAT) at transfer. Other beneficiaries may be subject to inheritance tax and/or income tax, depending on the pension type and their relationship to you.

If No Nomination Is in Place

Where no valid nomination exists, benefits may be paid to your estate, which can result in delays and possible tax consequences.If you would like assistance reviewing your scheme rules or completing your nomination form, we can help ensure your arrangements align with your wishes.

Pension tracing service for deceased

Are you trying to trace a pension for someone who has passed away? This can be done, but it requires specific information. Because you are searching on behalf of another person rather than for yourself, the process differs from the standard pension tracing route.

Speak with one of our advisors today to begin the process of locating 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 cannot inherit a State Pension. When a person dies, their State Pension payments stop.

However, you may be able to claim a Bereaved Partner’s (Contributory) Pension if you or your late spouse or civil partner paid enough PRSI contributions. In some cases, long-term cohabiting partners may also qualify, depending on certain conditions.

Good to know

A six-week payment of the deceased person’s social welfare benefit may continue after their death.
Overlap rules apply, which means you usually cannot receive two full main payments at the same time (for example, your own State Pension and a full bereaved partner’s pension).
You may be entitled to other supports, depending on your personal circumstances.

How long is a pension paid after death?

State Pension (Department of Social Protection)

The State Pension stops on the date of death.
A six-week continuation of the deceased person’s social welfare payment may be paid to the surviving spouse, civil partner, or estate.

Workplace & Private Pensions

What happens depends on the type of pension and the options chosen.

Before Retirement (active or deferred member)

A lump-sum death benefit is usually paid. Some schemes may also provide a spouse’s or children’s pension. There is no ongoing “salary-style” payment unless the scheme includes a dependant’s pension.

Annuity in payment:
- Single life, no guarantee: Payments stop at death.
- With a guarantee period (for example, 5–10 years): Payments continue until the end of the guaranteed term.
- Joint life: A chosen percentage (such as 50%–100%) continues to a spouse or civil partner for the rest of their life.
ARF/AMRF (or vested PRSA):
The regular payment does not continue. Instead, the remaining fund passes to the named beneficiaries. A spouse or civil partner can usually transfer it into an ARF in their own name and withdraw money as needed.

Practical tips

Inform the pension provider or trustees as soon as possible. Any payments made after the date of death may need to be repaid.
Check the beneficiary nomination (Expression of Wishes) and review the scheme booklet to understand the exact death benefits.
Tax treatment and payment timelines vary depending on the pension type and your relationship to the deceased. If you’re unsure, a regulated financial adviser can clarify what applies to your situation.

How do I assign my pension to my chosen beneficiary?

It depends on the type of pension you have, but the process is usually simple. Here’s an easy checklist that works for most pensions in Ireland.

1) Know Your Pension Type

Personal Pension / PRSA:
You normally name your beneficiaries directly with your provider.
Workplace / Occupational Pension:
You complete an Expression of Wishes / Nomination form for the scheme trustees.
ARF / Vested PRSA:
You can name a spouse or civil partner as ARF successor, as well as other beneficiaries.
Annuity:
What happens on death depends on the options you chose when you bought it (for example, joint life or a guaranteed period).
State Pension:
You cannot pass this on. It usually stops when you die, although separate survivor benefits may apply.

2) Fill Out the Correct Form

Ask your pension provider, HR department, or trustees for a Nomination or Expression of Wishes form (you may also be able to update it online).
List each person you want to benefit and state the percentage they should receive (for example, 60% to your spouse and 40% to your child).
Sign and return the form, and keep a copy for your records.

3) Understand How Decisions Are Made

In workplace schemes, your nomination is a guide for trustees but may not be legally binding. They must follow scheme rules.
For personal pensions, PRSAs, and ARFs, your recorded nomination is usually followed, depending on the product terms.

4) Keep It Updated

Review your nomination after major life events, such as:

Marriage or separation/divorce
Having a child
A death in the family
Changing jobs
A change in a beneficiary’s details

5) Think About Tax and Children

A spouse or civil partner often receives favourable tax treatment.
Other beneficiaries may have to pay inheritance tax (CAT) and/or income tax, depending on the pension type and their relationship to you.
If leaving benefits to children (especially minors), you may want to name a trustee or make sure your will explains how the money should be managed.

6) Keep Things Organised

Let someone know where your policy numbers and provider contact details are kept.
Make sure your will matches your pension nominations.
If you have more than one pension, update each one separately — nominations do not automatically carry over.

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?

In most cases, no. Money left to a spouse or civil partner is usually exempt from Capital Acquisitions Tax (CAT) in Ireland.

Here’s how it generally works for different pension types:

ARF / Vested PRSA

The fund can usually be transferred into your spouse or civil partner’s own ARF or PRSA with no CAT and no income tax at the time of transfer.
If they take money out later, those withdrawals are taxed as income in their hands.

PRSA / Personal Pension (before retirement)

If death happens before retirement, benefits paid to a spouse or civil partner are typically exempt from CAT. The exact details depend on the policy terms.

Workplace Pension (Death-in-Service)

A lump sum may be paid, within Revenue limits. Payments to a spouse or civil partner are generally exempt from CAT. If the fund is above the allowed lump-sum limit, the extra amount may be used to provide a dependant’s pension, depending on 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.

Take control of your retirement, with MyPension – Powered by CFC

View all your pensions in one place. MyPension allows you to easily manage your pensions, with features such as combining, contributing and making withdrawals. Your pension, in the palm of your hands.

Get Started