46% of pension holders have not considered inheritors
written by Bella Palmer
The absence of an expression of wish form could result in delays to any beneficiaries receiving the pension, or worse still, the potential for unintended beneficiaries receiving the pension
Around half (46%) of UK adults with pensions have not considered who should inherit them, according to research from Canada Life.
The firm's research found that more than half (54%) of UK adults with pensions have not completed an expression of wish form, with one in 10 (10%) admitting that the expression of wish is neither up to date or they simply do not know.
The expression of wish form is held by the pension firm, and in the event the customer dies, it will help distribute the pension quickly and efficiently taking into account the deceased’s views.
The absence of an expression of wish form could result in delays to any beneficiaries receiving the pension, or worse still, the potential for unintended beneficiaries receiving the pension.
Moreover, Canada Life pointed out that, with the removal of the lifetime allowance from April 2024, the way beneficiary pensions are taxed if the death occurs pre-75 years old depends on whether the pension is received as a lump sum or as an income.
This will be determined by the expressions of wish form and therefore, any decisions may have significant tax consequences.
Commenting on the findings, Canada Life pension, tax and estate planning specialist, John Chew, said: A decade of auto enrolment has encouraged more than 11 million people to save for their retirements.
He said: While it may be difficult thinking about your own mortality, completing an expression of wish form and ensuring it remains up-to-date is a crucial part of your financial legacy.
He added: Put simply, having an up-to-date form lodged with your pension firm makes sure the firm knows who you would like to benefit should you die. It provides a valuable piece of evidence when the trustees of the pension scheme try to establish the right beneficiaries to receive the money.
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