Martin Lewis has issued a stern financial warning to UK residents who are getting divorced. The financial guru took to social media to highlight a 'simple' mistake many could make which will impact their pension.
Should you be married, your pension and assets automatically go to your spouse should you die, but if you and your partner decide to part ways prior, this could cause issues to arise.
Martin has in turn told his followers that you aren't able to gift your pension in a will, and you must follow certain steps to make sure it's left with the right person when you pass.
Read more: Martin Lewis fan gets £1,000 boost after following MoneySavingExpert advice on ISAs
The Mirror reports that with pensions, you must fill out an expression of wishes form - also known as a nomination form. You can usually find this in your company or private pension's dashboard. This informs the pension company who you wish your pension should go to if you die.
After passing, the person named on your nomination form will either get a lump sum, or inherit the remaining pension.
You'll have to fill out the form for each private or company pension you have, and should you go through a major change like a divorce - you'll have to update your 'expression of wishes' form to reflect your new designated recipient.
Failing to do so could mean that you risk hundreds of thousands of pounds going to an ex. Taking to Twitter, the Money Saving Expert founder tweeted: "Warning. Don't accidentally leave your pension to an ex! You can't leave pension savings in your will.
"Die before taking your private/company pension and the provider/trustees decide what to do with it. Fill one in (your provider should have them).
"If you have, but years ago check it's up to date or as I was told... Colleague's ex-husband was still on her nomination form. Family had to contest. Nightmare for all involved."
Hargreaves Lansdown estimate that the average pension pot for someone aged between 55 and 64 sits at around £107,300, but the top 10% of earners could have a pot estimated to be around £637,500. The financial services company advise people to check their workplace and private pensions to see what death benefits are offered.
Read next:
- Martin Lewis explains how 'pimping your pension' with key steps could help you gain thousands
Martin Lewis defends paying for Twitter blue tick as users vow to unfollow him
First £301 DWP cost of living payment will start to arrive within days
Martin Lewis warns minimum wage workers of seven ways they could be 'underpaid'
DWP urges thousands of people missing out on £3,500 to check if they are eligible for extra cash
