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Jennifer Irvine
Senior Technical Support Consultant

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Nominee and successor flexi access drawdown

Published  17 February 2026
   5 min read

In this article we look at what nominee and successor flexi-access drawdown are, how they operate and their attraction.

Important Information

Legislation has been enacted to treat unused pension funds and certain pension death benefits as forming part of an individual’s estate for inheritance tax purposes, for deaths on or after 6 April 2027. These provisions are given statutory effect by the Finance Act 2026.

More detail can be found in our article Pension death benefits and inheritance tax changes from April 2027.

The following article is correct based on the current legislation and takes no account of the changes from 6 April 2027.

Key facts

  • Since 6 April 2015 you no longer have to be a dependant of the plan holder to receive drawdown income on their death.
  • Nominees are individuals nominated by the planholder.
  • Successors are individuals nominated by the nominee.
  • Scheme administrators can only nominate a beneficiary for flexi-access drawdown if there are no surviving dependants or nominees of the planholder.

What is nominee and successor flexi-access drawdown?

Only a dependant could receive a drawdown pension on the planholder's death before 6 April 2015. Now a nominee, or nominees, can also receive a drawdown pension. This is called nominee flexi-access drawdown.

And on their death, a successor or successors can take a drawdown pension. This is called successor flexi-access drawdown.

Who can be a nominee and successor?

A nominee is anyone nominated by the planholder, or the scheme administrator, who is not a dependant. The scheme administrator can only nominate someone where there is no surviving dependant, individual or charity nominated by the planholder.

A successor is anyone nominated by a dependant, nominee or successor of the planholder, or by the scheme administrator. The scheme administrator can only nominate an individual where there is no surviving individual or charity nominated by the beneficiary.

Why is it important to nominate a beneficiary?

A dependant or named beneficiary can choose to take their benefits as a lump sum, an annuity or as nominee or successor flexi-access drawdown. The scheme administrator can only nominate a beneficiary to receive flexi-access drawdown where there is no surviving dependant or named beneficiary. If there is a surviving dependant or individual(s) nominated by the scheme member, the scheme administrator wouldn't be able to pay flexi-access drawdown to anyone else; only lump sums can be paid. 

Apart from being good practice, it is vital that a planholder nominates and keeps their nominated beneficiaries up to date if they want them to have access to all death benefit options available under the scheme including flexi-access drawdown.

How does nominee and successor flexi-access drawdown operate?

Nominee and successor flexi-access drawdown operate in an identical manner to dependant's flexi-access drawdown. In particular:

  • No tax-free cash is available on setting up the nominee or successor flexi-access drawdown plan.
  • No contributions can be paid to the flexi-access drawdown plan.
  • Income payments to the nominee or successor are paid tax-free if the planholder died before age 75. Otherwise, income payments are taxed at their marginal rate of income tax.
  • The money purchase annual allowance is not triggered by taking income from a nominee or successor flexi-access drawdown plan.

What makes nominee and successor flexi-access drawdown attractive?

The retirement freedoms have changed general thinking towards pensions. Nominee and successor drawdown are seen as an attractive means of:

  • Passing down wealth through family generations under a pension wrapper. Some people have referred to this as 'family pensions'.
  • Retaining monies under a tax advantaged environment until such time they are needed by the nominee or successor. Or if they are not needed, they can be passed down to the next generation on the nominee or successor's death.
  • Providing a flexible income to the nominee or successor as and when they need it. And if their predecessor died before age 75, income payments are made tax-free.  If a lump sum or annuity were chosen, these also would be free of income tax if the predecessor died before age 75.

Death benefits - nominating beneficiaries

Here are some of the more frequently asked questions we've been asked about nominee flexi-access drawdown and successor flexi-access drawdown.

An individual can't dictate what form of death benefit the spouse can receive; nor can they influence what happens on the spouse's death.

All the individual can do is state who they'd like their death benefits paid to on their death. If the scheme administrator is using their discretion, they use this information as a guide when deciding on the beneficiaries.

What format the death benefits take is down to the beneficiary who will choose from the options the scheme offers. If they choose flexi-access drawdown, they will be asked who they want any remaining funds to be paid to on their death.

If each succeeding beneficiary chooses nominee or successor flexi-access drawdown, it's possible for the death benefits to pass down the generations. However, as each generation can withdraw as much or as little as they like, the number of generations receiving benefits is likely to be limited.

HMRC Pensions Tax Manual PTM000001: Nominee

HMRC Pensions Tax Manual PTM000001: Successor

They do if they want the death benefits split in these proportions.

However, if they're nominating, say the children so that they can be offered the option of flexi-access drawdown, it would be less confusing to state the reason for nominating the children on an attached piece of paper.

The next question gives an example of when it might be useful to do this. 

If they were dependent on the individual, they could. If they weren't dependent on them, this option would only be available if the individual had nominated them.

Non-dependent children who haven’t been nominated could only be paid a lump sum death benefit.

So, if an individual wants non-dependent children to have flexi-access drawdown as an option while a dependant is alive, they will need to be nominated.

HMRC Pensions Tax Manual PTM000001: Nominee

The nomination form is being used for two purposes.

  • One is to tell the scheme administrator how they want death benefits to be split on their death (if that's what they want to happen).
  • The other is to nominate a beneficiary so that they can receive nominee flexi-access drawdown if required.

The individual can explain their wishes on a separate sheet of paper attached to the nomination form.

HMRC Pensions Tax Manual PTM000001: Nominee

A dependant or named beneficiary can choose to take their benefits as a lump sum, an annuity or as nominee or successor flexi-access drawdown. The scheme administrator can only nominate a beneficiary to receive flexi-access drawdown where there is no surviving dependant or named beneficiary. If there is a surviving dependant or individual(s) nominated by the scheme member, the scheme administrator wouldn't be able to pay flexi-access drawdown to anyone else; only lump sums can be paid. 

Apart from being good practice, it is very important that an individual nominates and keeps their nominated beneficiaries up to date if they want them to have access to all death benefit options available under the scheme including flexi-access drawdown.

HMRC Pensions Tax Manual PTM000001: Nominee

HMRC Pensions Tax Manual PTM000001: Successor

Disclaimer

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.