If you have a dependant who relies on you financially e.g. a family member, spouse or civil partner, you might want to buy a joint life annuity or a dependant’s pension as this will continue to pay them an income after you die.

Whilst some schemes will offer a dependant's pension as standard, others provide this as an additional option. Choosing this option means that when you die, an income is paid to your dependant, either for a limited term or for the rest of their life.

This option can also be referred to as a reversionary pension because the income reverts to your dependant.

You usually have to name this person when you set your pension up, and you can specify the percentage that they will receive. This is typically between 50 and 100% depending on the type of pension scheme you are in. This amount, as well as the age of your dependant will have an affect on the amount of income that you will receive.