What Happens to Your Pension When You Die?

General information only, based on official public sources. Not financial, tax, legal or welfare advice.

The State Pension

The State Pension (Contributory) stops on your death. It is a personal payment and cannot be inherited as a lump sum by a spouse, children, or anyone else.

However, a surviving spouse or civil partner may qualify for a Bereaved Partner's Contributory Pension from the Department of Social Protection, based on either partner's PRSI record.

Social welfare payments including the State Pension can continue to be paid for 6 weeks after death to give the household time to adjust. After that, they stop.

Source: Citizens Information — Benefits following a death ↗

Occupational pension (workplace pension)

What happens depends on whether you have retired yet and what type of scheme you are in.

Situation	What typically happens
Die before retirement (DC scheme)	Your accumulated fund is paid as a lump sum to your estate or nominated beneficiaries. Many schemes also provide a death-in-service benefit — often around 4 times your salary.
Die before retirement (DB scheme)	A surviving spouse may receive a dependant's pension. Your own contributions may be refunded if no dependant pension applies.
Die after retirement on an annuity	Payments stop unless you chose a joint-life or guaranteed period option when you bought the annuity.
Die after retirement with an ARF	The remaining fund can be passed to your spouse or estate. Tax rules apply depending on the beneficiary.

Source: Citizens Information — Occupational pensions ↗

PRSA

If you die before drawing on your PRSA, the full value of the fund is paid to your estate. Your estate then distributes it according to your will or the rules of intestacy if there is no will.

If you die after retirement and have moved your PRSA into an ARF (Approved Retirement Fund), the ARF can be passed to your spouse tax-free. Other beneficiaries may face income tax and potentially inheritance tax.

Tax on inherited pensions

Tax treatment depends on who inherits and what type of pension is involved.

Beneficiary	Tax treatment
Spouse or civil partner	Generally tax-free transfer
Child under 21	Lump sum may be subject to inheritance tax (CAT) after the tax-free threshold is used
Child over 21	ARF inheritance is subject to income tax at 30%; CAT may also apply
Other beneficiaries	Subject to income tax and potentially CAT depending on the pension type and amount

Source: Revenue.ie — Pensions ↗

Keeping your nominated beneficiary details up to date on all your pension schemes is one of the most important and most overlooked financial tasks. If your circumstances change (marriage, divorce, children), update your nominations.

What this means in real life

For a family, the practical outcome after a death depends heavily on the type of pension involved. A State Pension normally stops because it is a personal weekly payment, although a surviving spouse or civil partner may qualify separately for a bereavement payment under social welfare rules. An occupational pension may provide a spouse's pension, dependant's pension or lump sum according to the scheme rules. A PRSA or other private pension can have a nominated beneficiary or estate treatment, with tax depending on the recipient and the form of payment. This means a pension statement or expression-of-wishes form can be relevant, but it does not override every legal or scheme rule. The outcome is different from ordinary bank savings and can vary between pension arrangements.

Common confusion

"My pension automatically goes to my next of kin."

Not necessarily. Pension trustees have discretion over who receives death benefits, even if you have a nominated beneficiary. Your nomination is a strong guide but is not always legally binding. This is why it is important to keep nominations up to date and to have a valid will.

"My pension is covered by my will."

Not always. Pension death benefits often sit outside your estate and may not be covered by your will at all. The pension trustees decide who receives the benefit based on your nominations and the scheme rules. This is particularly important for occupational pensions and PRSAs.

"My spouse will receive my full pension when I die."

It depends on the pension type and what options you chose. If you retired with an annuity and did not select a joint-life option, payments stop on your death. With a defined contribution scheme or PRSA, the remaining fund can pass to your spouse. Always check the specific rules of your scheme.

This page gives general information only. Pension death benefit rules are complex and can vary significantly between schemes. Consider speaking to a regulated financial adviser or the Pensions Authority for advice specific to your situation.