Reaching age 75 - our top five frequently asked questions

Published  25 February 2022
   4 min read

We look at reaching age 75 in our series of top five FAQs on pensions technical topics.

Regardless of whether the benefits are uncrystallised or in drawdown after age 75, the beneficiary will be subject to income tax on any benefits taken.

Death after age 75 is not a benefit crystallisation event so there is no lifetime allowance check on death after age 75.

Death benefits from April 2015

Yes. If the product allows the individual to remain invested after age 75 then it is possible to take a pension commencement lump sum after age 75.

Care should be taken as on death after age 75 as any benefits taken are taxable, there is no tax-free element.  The right to a pension commencement lump sum ends when the individual dies. It does not pass to a beneficiary.

It is important to look at all taxes that can apply, if a pension commencement lump sum is taken.  If the individual dies before the money is spent, there may be liable to an inheritance tax charge which may be more than the income tax charge on beneficiary drawdown.

The provider will deduct a tax charge of 45% before paying the benefits to the trust.

This charge can be used as a tax credit by the ultimate beneficiary of the trust assets to offset their own income tax liability.

PTM073010: Death benefits: lump sums: tax on authorised lump sum death benefits (opens in a new window)

There are 3 benefit crystallisation events which could occur at age 75.

  • Benefit crystallisation event 5 occurs when there are uncrystallised benefits in a defined benefits scheme at age 75.
  • Benefit crystallisation event 5A occurs when the individual has benefits in drawdown at age 75.
  • Benefit crystallisation event 5B occurs when the individual has uncrystallised benefits in a money purchase scheme.

PTM088650: Benefit crystallisation events 5, 5A and 5B age 75 (opens in a new window)

The only benefit crystallisation event which can occur after age 75 is benefit crystallisation event 3.

This would occur when a pension in payment is increased beyond a certain level.

An amount is regarded as crystallising for lifetime allowance purposes when it exceeds both the threshold annual rate, and the permitted margin.

PTM088630: Benefit crystallisation event 3 increase to a scheme pension in payment (opens in a new window)


The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.

All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.