Martin Lewis says people may ‘accidentally’ leave pensions funds to ex | Personal Finance | Finance
Money saving expert Martin Lewis has urged anyone with a private or workplace pension to review their details, warning that outdated records could result in savings being inadvertently left to former partners. Shortly after his BAFTA win, Lewis released his latest MSE newsletter outlining 13 ways to maximise and safeguard private and workplace pensions. Among his key pieces of advice, inspired by years of correspondence from readers, was a warning: “Don’t accidentally leave your private or workplace pension to your ex!”
Lewis highlighted that many people neglect to update their “expression of wishes” when joining certain pension schemes. Should you pass away with funds remaining in these pensions, your provider will typically refer to this document to determine who receives the money.
Failing to keep this information current could mean your hard-earned savings end up with former partners you have long since parted ways with or lost touch with entirely.
Lewis explained: “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 expressed frustration over the numerous messages he has received through the years from people who were overlooked when a relative passed away because they had failed to update their expression of wishes.
He highlighted one message from 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 offers a comprehensive guide on completing and updating Expression of Wishes forms. These forms are typically available for Money Purchase pensions, also referred to as defined-contribution pensions, and salary schemes or defined-benefit pensions.
It is possible to nominate someone under the age of 18 to receive your pension should you die. However, the provider will only be able to distribute it to them if a trust or appropriate arrangement exists.
Certain forms may also provide space where you can specify what you would like to occur if none of your named beneficiaries can be located or are unable to receive the funds.
The MSE site recommends: “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.”
