Retirement Accounts Guide

What are retirement accounts?

Retirement accounts are savings vehicles designed to provide income during retirement. They include employer-sponsored plans (like workplace pensions and 401(k) plans), individual retirement accounts (like IRAs and SIPPs), and government pension schemes. Recording them in your estate plan ensures your retirement savings are distributed according to your wishes.

Key terminology

Understanding these terms will help you manage your retirement accounts effectively.

How to add retirement accounts

Recording your retirement accounts ensures they are included in your estate plan and can be properly administered.

1. Open Asset Management → Personal Asset Tracker → Retirement in the sidebar. If you do not see it, switch the category on under Asset Management → Asset Classes.
2. Click "Add Retirement Account"
3. Enter the account name, type, and provider
4. For employer-sponsored plans, add employer details and contribution information
5. Under "Account Value", enter the Account balance and the Balance date
6. Add early withdrawal details if applicable
7. Upload your account statement and benefit documents
8. Save the record. It appears in your Retirement Accounts list, where you can edit it at any time

Document checklist

Keep these documents accessible for each retirement account:

• Latest account statement showing current balance
• Employer benefits summary or plan document
• Beneficiary designation forms (these may override your will)
• Pension scheme membership certificate
• Transfer paperwork (if account was moved between providers)

Retirement accounts and your will

Retirement accounts have unique estate planning considerations. How these assets pass to your beneficiaries depends on the type of account and the jurisdiction where it is held.

• Many schemes ask you to nominate who should receive benefits, and that nomination may be treated separately from your will
• Some pensions pay a lump sum on death, others provide ongoing income to dependants
• Tax treatment on inheritance varies by account type and jurisdiction
• Workplace pensions may have different rules for death-in-service benefits

Pension nominees are registered directly with your pension provider. Learn more about nominee designations and how to file them (opens in a new tab).

Where should I record retirement vs financial assets?

Pension plans, 401(k)s, IRAs, SIPPs, and similar retirement-specific accounts belong under Retirement Accounts. General investments held in brokerage accounts, ISAs (non-pension), or savings accounts should be recorded under Financial Assets.

What if my account type isn’t listed?

Select the closest equivalent from the available options, or choose "Other" and type the scheme’s name into the "Please specify" field that appears. The account type list covers retirement schemes from several countries and is maintained centrally.

Should I include the State Pension / Social Security?

Government pensions usually cannot be passed on through a will, but recording them gives a complete picture of your retirement provision. Select "State Pension" as the account type. Your legal professional can advise on any death benefits available to your dependants.

Do beneficiary designations override my will?

It depends on the scheme and the country. Many schemes treat a nomination made with the provider separately from a will, so it is worth keeping nominations current and consistent with your overall estate plan, and asking a qualified professional how yours are treated.

Does my pension count towards my estate for inheritance tax?

Most unused funds and lump-sum death benefits from UK registered pension schemes are expected to count towards the estate for UK inheritance tax, alongside everything else the person owned. Other countries treat retirement savings in their own ways. Our guide to pensions and inheritance tax (opens in a new tab) explains what changes and what stays outside.

Is death in service included in inheritance tax?

Under the UK rules, death-in-service benefits paid by a registered pension scheme are among the benefits expected to stay outside the estate, together with dependants’ scheme pensions and joint-life annuities. Benefits passing to a spouse or civil partner are also generally exempt. The scheme can confirm how a particular benefit is paid.

Who pays inheritance tax on a pension?

Under the UK rules, the personal representatives (usually the executors) identify each pension, ask the scheme for a valuation, report it and pay any inheritance tax due. They can ask a scheme to hold back part of the benefits, or to pay the tax to HM Revenue & Customs directly, while this is settled. A retirement account recorded here with its provider and account number gives them a starting point.

What happens to my pension when I die?

It depends on the scheme and the country. Many schemes pay a lump sum or an ongoing pension to the people you nominated, and the scheme usually decides who receives the benefits, guided by that nomination. In the UK, when someone dies aged 75 or over, the people who receive the benefits may also pay income tax on them. A qualified professional can explain how a particular scheme is treated.