Don’t leave your pension to chance

Pension experts are calling on workers to create and update expressions of wishes to ensure their private pensions get paid to the right beneficiaries in the event of them dying before they retire.

Unlike other assets, pensions cannot be assigned in a Will. Defined benefit and defined contribution pension schemes generally ask members to nominate a beneficiary through an expression of wish form. These notices of intent should regularly be updated to reflect any significant changes in circumstances.

New data from Hargreaves Lansdown has revealed the demographic breakdown of those who have completed an expression of wish to name a pension beneficiary. The firm has seen a 26% increase in the number of people updating expressions of wishes between 2022 and 2024.

The research shows that men are slightly more likely than women to have completed the form, with 40% of men nominating a beneficiary compared to 34% of women. While 40% of people over the age of 60 had not completed an expression of wish, the issue is more prevalent among the younger generation as only one in 10 people under the age of 30 have named a pension beneficiary.

The new data provides an updated picture regarding pension planning, following research by the government funded Money and Pensions Service (MaPS) in late 2023 which stated that more than 26 million savers did not know what would happen to their workplace pension or who would inherit their pension savings after their death.

Partner and Actuary at Quantum Advisory, Stuart Price, said: 

“We are continually raising the notion of expression of wishes with members of the pension schemes we administer. So often, we see members either with outdated mandates or without them entirely. 

“We encourage everyone with a pension to check who their beneficiaries are and if needed, update them. Outdated expressions can mean younger beneficiaries are missed out or can cause confusion, particularly if there are complex family circumstances. This can result in a request for additional information from family members at a difficult time and can cause a delay in payment when funds are needed to pay funeral expenses. 

“The key messages when it comes to expressions of wishes are to ensure you have one for every pension arrangement, clearly state your intentions and keep them up to date.”

For more information about expressions of wishes, email info@qallp.co.uk.