Pensions - Articles - Three in five pension wills are out of date


According to new insight from Canada Life three in five 16-54 year olds (61%)1 said their nominated beneficiary or expression of wish form is out of date, or don’t know the position. Only 39% of people confirmed their form was up-to-date according to the research.

 Out of date expression of wish forms at the very least can lead to delays when trustees are making payments to beneficiaries, and in the worst case scenario could lead to the wrong beneficiaries receiving payment, Canada Life says.

 Andrew Tully, Technical Director at Canada Life, said:“An expression of wish form is a vital piece of the pension jigsaw. Anyone who has a pension would have been asked at outset to complete a form to nominate who should receive the benefits of the pension in the event of their death.

 “Given the complexities of life and how things can change so quickly, it is hardly surprising many people said their form is out of date.

 But that shouldn’t excuse the fact these forms are vital to help pension trustees and scheme administrators pay benefits not only quickly and efficiently, but to the right people. Think of them as a ‘will for your pension’ and ensure you keep it up to date if your personal circumstances change.

 “This approach continues into retirement if you have decided to use drawdown to manage your finances, as again, any pension funds beneficiaries stand to receive will be paid more quickly and to the right people if the form is current. In addition, as the legislation is more complex than it needs to be, nominating people is likely to allow more flexibility for benefits to be passed on in a tax efficient way.”

 What are death benefit expression of wish forms?
 Who gets pension savings following the death of a member is usually down to the discretion of the trustees or scheme administrator. In order to help them make these decisions, members can complete an ‘expression of wish’ or ‘nomination’ form. This allows the member to document what they want to happen to their money when they die. Although not legally binding, the forms are used by pension scheme trustees and administrators to speed up the distribution of funds to nominated beneficiaries. Often there can be complicated family situations so there may be a desire to include multiple people on the nomination form.

 The pension company, sponsoring employer or drawdown provider will have asked the customer to complete an expression of wish form at the outset of the pension being started, or at the point the drawdown plan was started. It can normally be updated at any time so should be reviewed regularly, especially if family circumstances change, or as the member crosses the age 75 threshold when the tax status of benefits changes.

 Pension scheme trustees or administrators will always take into consideration an expression of wish form, often in conjunction with a valid will.
  

Back to Index


Similar News to this Story

PPF marks 20 years of protection in its Annual Report
The Pension Protection Fund (PPF) has published its 2024/25 Annual Report and Accounts, marking its 20th anniversary with a year of strong financial p
DC pensions continue to back Net Zero despite ESG backlash
Barnett Waddingham’s latest DC Sustainability Report finds a 34% increase in allocations to funds with a climate target in the growth stage since orig
Chancellors focus on guided retirement for pensions savers
Ahead of the Mansion House speech to be delivered by UK Chancellor Rachel Reeves on the evening of 15 July, Glyn Bradley, Chair of Pensions Board at t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.