Martin Lewis has issued a warning to millions of Britons about the importance of updating pension nomination forms to prevent ex-partners from inheriting savings. In his latest Money Saving Expert newsletter, the finance guru highlighted that many people fail to update their 'expression of wishes' after relationship changes, leaving former partners as potential beneficiaries.
Lewis explained that workplace and private pensions typically require a nomination form, which tells the trustees who should receive the funds upon death. While trustees usually follow these wishes, they are not legally bound to do so. However, if the form is outdated, it can lead to unintended consequences. One follower shared: '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!'
Lewis stressed that pension savings cannot usually be left via a will. Instead, the pension provider or trustees decide the beneficiary based on the nomination form. He urged subscribers to check and update their forms, especially after major life events such as divorce or separation. 'I've had too many messages like this over the years,' he said.
Most modern pensions are 'money purchase' schemes, where the pot can be left to anyone, including partners, friends, relatives, or charities. Older 'final salary' or 'average salary' pensions have specific rules that vary by scheme, so individuals must check with their provider. Lewis advised: 'Check and update your expression of wishes – it's important.'
