Martin Lewis has issued a stark warning to millions of people across the country who are paying into a workplace or private pension scheme. According to the latest Department for Work and Pensions (DWP) figures, in April 2023 some 22.3 million employees across the UK were saving for their retirement through a workplace pension.
However, many people building a pension pot to help boost their retirement lifestyle may be unaware you cannot put a pension into your will. In the latest edition of the MoneySavingExpert (MSE) newsletter, the consumer champion explained the only way to ensure your private or workplace pension goes to the right people (or person), is to complete an ‘Expression of Wishes’ form with your employer.
Martin said: “Die before taking your private or company pension, and the provider / trustees decide what to do with it. An Expression of Wishes (or nomination) form tells them your preference, it’s not binding but usually does the job.”
Martin urged people to check they have completed the form and it’s up to date, warning “there are horror stories out there from people who haven’t” and their pension pot has gone to an ex.
How to make sure your pension goes to the right person
If you want to leave your pension to someone, get on to your workplace or private pension provider and fill out an ‘Expression of Wishes’ or ‘nomination’ form which tells the trustees or tells the company who you want your pension assets to go to if you die.
People who already have those forms completed and attached to their pension should check the information held is up to date – especially if your relationship status has changed.
Martin also had advice for unmarried couples, explaining the term “oft means diddly squat in law!”. He added: “Get a will, a contract, a civil partnership or tie the knot. So you’ve been together decades and have a dozen children – in inheritance law, so what? If you’re not married or don’t have a formal civil partnership, your relationship usually has no status.
“So if your partner dies, the other one may not get the house.”
He went on to say how having a will is the best option and even more important if you have dependent children.
Martin added there are also tax advantages to being married, especially with inheritance tax and transferring assets from one to the other.
He added: “It’s also worth considering a cohabitation agreement, which spells out what happens if your relationship breaks down.”
Martin’s full guide on how to protect you and your family finances can be found on MSE.com here.