He spoke about several financial documents you should have in place
People planning for their retirement often overlook a pensions rule, Martin Lewis has warned. He shared a host of tips on his BBC podcast about getting your finances in order.
Addressing a newlywed couple on his BBC podcast who asked which financial records they should update, Lewis had some words to say about pensions. He highlighted an important form that all pension savers should check is up to date. The money expert said: “You will probably have workplace pension schemes. It’s important to understand when you sign up to a pension, you fill out an expression of wishes. It can also be called a nomination form.”
His MSE website says that an expression of wish form tells your pension provider who should get your pension savings if you die before you retire. The website say that it is not legally binding on the provider, but says “they will take your wishes into account when deciding who to pay your pension out to”.
The Interactive Investor website says you “should be given the opportunity to complete an expression of wishes when you first open your pension.” Yet if not, it notes that you can complete one whenever you like by getting in touch with your provider.
The document plays a key role in where your savings end up, yet it is easily forgotten. Mr Lewis said: “Many people forget that they’ve done this. And that’s because your pension is not included in your will. The expression of wishes tells the trustees of the pension or the pension firm who you would like your pension to go to in the event that you die.”
For anyone who has recently remarried or tied the knot after a previous long-term relationship, reviewing this form is vital. If an ex-partner remains listed as the beneficiary on your nomination form, your pension pot will still be awarded to them upon your death—regardless of your current relationship status.
‘More important than a will’
Beyond pensions, Mr Lewis also told listeners that creating or updating a will is “really important”. In England, Wales, and Northern Ireland, entering a marriage or civil partnership automatically revokes any existing will you previously had, leaving you without a valid estate plan unless a new one is drafted.
But Mr Lewis argued that another document is even more vital during your lifetime: a Lasting Power of Attorney (LPA). Being married does not automatically give you the right to handle your spouse’s finances if they suffer an illness or injury that leaves them unable to manage their own affairs.
Explaining why he views an LPA as “more important than a will”, Mr Lewis warned: “Once you’re dead, you’re dead, and there are intestacy laws and it won’t mean your money goes to the right place, but it’ll mean it’ll go somewhere. But if you’re incapacitated and you can’t make decisions for yourself, then the finances can be locked away.”
Financial perks for couples
While administrative tasks like LPAs and pension forms require prompt attention, getting married also unlocks major tax advantages:
- Inheritance tax allowances: Every individual has a standard tax-free allowance of £325,000, plus an additional £175,000 main residence allowance when passing a home to a direct descendant. Married couples and civil partners can transfer any unused tax allowances to the surviving partner upon death—effectively doubling their standard allowance up to £650,000 for standard assets and £350,000 for the main residence allowance.
- Marriage Allowance: If one partner earns below the Personal Allowance threshold (a non-taxpayer), they can transfer 10 per cent of that allowance—worth £1,260—to their tax-paying spouse.
