Nearly three-quarters of UK adults do not have a pension will

Life insurance provider Canada Life has revealed that 72% of adults in the UK do not have a pension will.

Otherwise known as an expression of wish, a pension will establishes who will receive your pension savings if you die before you retire. It is different to a will, which determines who benefits from your estate and other assets.

A possible reason for the low uptake of pension wills is because of a lack of understanding about them. Recent research from Lowell indicated that 18% of people believe that pensions simply disappear when you die.

Not having an expression of wish does not mean, however, that the beneficiaries will not receive your pension. But it will, however, slow the entire process down and can make an already difficult period for your loved ones even more challenging. 

Andrew Tully, technical director at Canada Life, said:

“A huge number of UK workers have been auto enrolled into pensions over the past few years so it’s both surprising and concerning more people either haven’t completed a pension will or perhaps can’t remember. 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.

“The expression of wish provides a valuable piece of evidence when the trustees are trying to establish the right beneficiaries to receive the money”

Fortunately, setting up a pension will is relatively straightforward. It can be achieved either by getting in touch with your company's HR department or pensions provider directly. 

You can add as many beneficiaries as you like, and allocate each of them a percentage of your pension value. Even if you have previously set up an expression of will, it’s important to make sure it’s updated every few years to accommodate your changing personal circumstances.