The MoneySavingExpert issued a warning to people with personal and workplace pensions
Money saving expert Martin Lewis has issued an urgent call for anyone holding a private or workplace pension to check their records. He cautioned that out-of-date information could lead to savings being unintentionally passed on to ex-partners.
Following his BAFTA triumph, Lewis published his latest MSE newsletter detailing 13 strategies to maximise and protect private and workplace pensions. Amongst his crucial recommendations, drawn from years of reader correspondence, was a striking caution: “Don’t accidentally leave your private or workplace pension to your ex!”
Lewis emphasised that many people fail to update their “expression of wishes” upon enrolling in particular pension schemes. Should you die with funds still remaining in these pensions, your provider will generally consult this document to establish who should receive the money.
Neglecting to maintain this information up to date could result in your hard-earned savings going to former partners you separated from years ago or have completely lost contact with.
Lewis clarified: “You can’t usually leave pension savings in your will. If you die without taking it, or there’s still money in your pension, the provider/trustees decide what to do with it.” He added: “Instead, when you sign up to a Money Purchase type scheme or similar you usually fill out an expression of wishes (aka a nomination form), which tells the trustees your preferences. They usually follow this but don’t have too.”
Martin voiced his exasperation over the countless messages he has received over the years from people who were left out when a family member died because they had neglected to update their expression of wishes. He drew attention to one post on X: “@MartinSLewis It’s just happened to us! My mother-in-law died… only for her pension firm to want her ex’s details… they split 20 years ago! She’d be spitting feathers if she knew!”
The MSE website provides a thorough guide on filling in and updating Expression of Wishes forms. These forms are generally available for Money Purchase pensions, also known as defined-contribution pensions, and salary schemes or defined-benefit pensions.
It is indeed possible to nominate someone under 18 to receive your pension in the event of your death. However, the provider will only be able to distribute the funds to them if a trust or suitable arrangement is in place.
Certain forms may also include a section where you can outline your wishes should none of your nominated beneficiaries be traceable or eligible to receive the funds. The MSE website advises: “But the most important point is to keep your wording as simple and to the point as possible. Avoid trying to cover a multitude of eventualities. Though it might be tempting to include highly specific scenarios, this can lead to an increased risk of misinterpretation.”
