Planning for retirement involves not just saving for the golden years but also considering what happens to your home, money and belongings after you're gone. Understanding what happens to your pension when you die is crucial for effective estate planning.
Your pension can be a valuable asset to leave behind for your loved ones, providing them with financial security even after you're no longer around. However, what happens to it depends on various factors such as the type of pension you have, your age at the time of death, and whether you've completed an Expression of Wish form.
If you die before accessing your pension, the remaining pot typically passes on to your beneficiaries. This can be your spouse/registered civil partner, children, or another family member. However, it's essential to make sure you've updated your pension provider with the relevant beneficiary information to ensure a smooth transfer.
Have you completed an Expression of wish?
Completing an Expression of Wish form allows you to tell the Trustee who you would like to receive any lump-sum benefits payable from the Plan when you die. You may include any number of individuals and may nominate different individuals at any time by completing a new form.
If you’ve already completed an Expression of Wish form, you should make sure that the details are up to date to reflect your current circumstances and wishes. The Expression of Wish is not strictly legally binding, but it does provide the Trustee with a very important indication of your wishes.
You can update your Expression of Wish form via the Member Portal or by contacting the Plan administrator using the information in the contact details section.