Almost half (46 per cent) of UK adults with pensions have not considered who should inherit them, research from Canada Life has found.
The firm’s research revealed that over half (54 per cent) of UK adults with pensions haven’t completed an expression of wish form, with one in 10 (10 per cent) admitting that the expression of wish is neither up to date or they simply don’t know.
The expression of wish form is held by the pension company, 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 results in delays to any beneficiaries receiving the pension, or worse still, the potential for unintended beneficiaries receiving the pension.
Additionally, 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 over 11 million people to save for their retirements.
“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 critical part of your financial legacy.
“Put simply, having an up-to-date form lodged with your pension company makes sure the company 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.”
