Martin Lewis has urged anyone with a private or workplace pension to take action as they might accidentally leave their savings to people they’ve cut ties with if they don’t keep their details up to date. Shortly after his BAFTA win, the expert released his latest MSE newsletter detailing 13 ways people could maximise and protect their private and workplace pensions.
One of his first tips was inspired by many messages the expert had received over the years. He said: “Don’t accidentally leave your private or workplace pension to your ex!”
Martin explained that many people forget to update their “expression of wishes” when they sign up to certain pension schemes. If you die with money still in these pensions, your provider usually follows your expression of wishes to see who they must give the money to.
If you don’t update these expressions of wishes, your provider might be left handing your savings to former partners you’ve since broken up with or don’t even have contact with. Martin 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.
View 3 ImagesThe expert revealed he’s had many people write in with this issue over the years(Image: ITV)
“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 lamented the number of messages he’s had over the years from people who had been snubbed when a loved one died because they hadn’t updated their expression of wishes. He shared one 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!”
View 3 ImagesPensioners who don’t update their details risk leaving their current partners out of pocket(Image: GETTY)
The MSE website has a detailed guide on filling out and updating Expression of Wishes forms. These forms are usually available on Money Purchase pensions, also known as defined-contribution pensions, and salary schemes or defined-benefit pensions.
You can nominate someone who is under the age of 18 to receive your pension if you die. However, the provider will only be able to pay it to them if there is a trust or suitable arrangement in place.
Some forms may also have some space where you can detail what you’d like to happen if none of your listed beneficiaries can be found or aren’t able to receive the money.
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The MSE site advises: “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.”