With Secure Retirement Income (SRI), can I leave money to loved ones?

Having worked hard for many years to build up your retirement savings, you may want any remaining savings to go to loved ones when you die.

Passing on an income

When you start taking guaranteed income payments from Secure Retirement Income, you can select either a single or joint life secure income. If you choose joint-life guaranteed income payments, when you die the person you nominate can continue to receive guaranteed income payments at 50% of the rate that was payable to you, until they die.

To qualify as a joint-life dependent, the person you nominate must be (at the point of nomination and on your death), either:

  1. your spouse or civil partner; or
  2. someone who, in our opinion, was;
  • financially dependent on you, or
  • the person’s financial relationship with you was one of mutual dependence, or
  • the person was dependent on you because of physical or mental impairment.

In addition, the joint life nominee can’t be more than 10 years younger than you.

Please note: if you have drawdown funds that were inherited on the death of someone else, and you invest in Secure Retirement Income from those funds, you won’t be able to take joint-life guaranteed income payments from them.

Passing on remaining savings

If you don’t choose the joint life option, we may pay or allocate any remaining savings to your nominated beneficiaries when you die.

And, if you select the guaranteed minimum death benefit option, this amount could be higher. If you choose this option, we’ll pay your beneficiaries the higher of:

  • the value of any remaining Secure Retirement Income savings, or
  • the highest monthiversary lock-in value at the last review date, minus any guaranteed income paid**, or
  • the value of your original investment, minus any guaranteed income paid**

**Please note, the value of this benefit will be reduced proportionately if you have switched savings out of your SRI investment.

Please bear in mind that, if we’ve paid more in income payments than the highest monthiversary lock-in value at your last review date, or your original investment, and your fund value is zero, then there won’t be any money to pass on.

To find out how we work out your highest monthiversary lock-in value, and for more information on Secure Retirement Income, please go to www.aegon.co.ik/SRI