Money Saving Expert Martin Lewis has issued a warning to anyone with a private pension, warning their savings may not go to who they wish when they die. Instead, the decision could be made by the government, reportedly because many people don't actually express their wish to leave their pension to a loved one when they take out the policy.
Speaking on his ITV programme Money Show Live, he explained: "If you want to leave your pension to someone, get on to your company or private pension 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.
"Make sure your details are up to date - you don't want to leave it to your ex-husband or ex-wife if you don't want the money to go to them anymore. So, that is an important thing to look at too." If you don't do this, the state could decide what happens to your money after you die, Leicester Mercury reports.
Read more: Martin Lewis urges Universal Credit claimants to check for cheap broadband as prices rise
In England and Wales, intestacy rules mean that if you are married or in a civil partnership and do not have a will, everything you have would automatically go to your spouse if it is worth less than £270,000. Should your estate be worth more than this and you have children, half will automatically go to your spouse and the other half would be equally split between your children.
You cannot put your pension into your will, you would have to explicitly state to your pension provider what you would like to happen to your savings when you die. According to figures from the Office for National Statistics (ONS), in April 2021 some 22.6 million employees across the UK were saving for their retirement through a workplace pension.
When it comes to your State Pension when you die, it will stop being paid to you. However, it is possible for your husband, wife, or civil partner to inherit some of it. This depends on the amount of National Insurance contributions you both made when you both reached (or will reach) State Pension Age.
It is only possible for a spouse or civil partner to inherit a State Pension, not your children.
Read next:
- DWP: New rules on £150 energy discount issued to PIP claimants as 290,000 miss out
- Millions could be entitled to vouchers to help pay for energy bills - but there's not long left to claim
- The DWP benefits to be paid early next week - including PIP and Universal Credit
- Tesco Clubcard changes begin from today - what you need to know
- DWP confirms PIP to stay non means-tested after becoming only health assessment for benefits
