When was the last time your members were reminded to complete an ‘expression of wish’ form for their pension? You could be putting their beneficiaries at risk if you don’t remind your members regularly to complete, or update an existing, expression of wish form.
What is an expression of wish?
Unlike savings accounts or property, a pension isn't covered by a Will. Instead, pension scheme trustees ask members to nominate one or more beneficiaries using a document called an expression of wish.
An expression of wish is important because it tells pension scheme trustees who members would like their pension savings to go to if they die before retiring. Without one, the decision about who receives their pension is left to the discretion of the pension scheme trustees, which can lead to delays, disputes, or the money going to someone they didn’t intend to receive it.
Unfortunately, many people don’t complete this important form - or they forget to update it when life circumstances change.
The numbers say it all
New data from Hargreaves Lansdown has revealed the demographic breakdown of those who have completed an expression of wish to name a pension beneficiary. It shows a 26% increase in people updating their expressions of wish between 2022 and 2024. While that’s a positive sign, the figures still reveal some concerning gaps:
• The research shows that men are slightly more likely than women to have completed the form, with 40% of men nominating a beneficiary compared to 34% of women.
• While 40% of people over the age of 60 had not completed an expression of wish, the issue is more prevalent among the younger generation as only one in 10 people under the age of 30 have named a pension beneficiary.
This mirrors earlier findings regarding pension planning following research by the government funded Money and Pensions Service (MaPS) in late 2023, which revealed that over 26 million UK savers did not know what would happen to their workplace pension or who would inherit their pension savings after their death.
Why it matters
The key messages when it comes to expressions of wishes are to ensure members have one for every pension arrangement, clearly stating their intentions, and to remind them the importance of keeping it up to date.
Outdated expressions can mean younger beneficiaries are missed out, or can cause confusion, particularly if there are complex family circumstances. This can result in delays during a difficult time, especially when funds are needed to pay funeral expenses.
Lives of members will, of course, naturally evolve – marriage, divorce, children, new relationships – and therefore pension beneficiaries will naturally change too. If a member does not keep an expression of wish updated their money may not go to the right place – which could cause the pension scheme itself problems with administration and bad feeling.
In other words, failing to name (or update) a pension beneficiary could leave members loved ones in financial limbo when they need help the most.
What should you do?
The message is simple: make sure you inform members to have an expression of wish form in place for every pension they hold and remind them to keep it current. Tell your members to;
• review their forms whenever major life events happen such as marriage, divorce, having children, or bereavement,
• clearly state who should receive their pension savings,
• and offer support! If they are unsure where to start, offer help so your members know how to complete or update an expression of wish.
Planning for the future isn’t just about how much is saved - it’s also about making sure wishes are clearly documented. An expression of wish gives control, avoids complications, and ensures that pensions end up in the right hands.
Stuart Price, Partner and Actuary – Quantum Advisory
