How to nominate a beneficiary for your pension

With a defined contribution pension, the most common type of private pension, you can choose a nominated beneficiary who will inherit the money if you die¹. You do that by filling in a nomination or expression of wish form with your pension provider². Most private and workplace schemes ask you to choose who you want to leave your pension to, and to keep that choice up to date³.

The form is not the same as a will. A pension usually sits outside your estate, so it is not covered by your will⁴. Instead, the trustees or provider use their discretion to decide who receives the money, and they will consider your wishes but are not legally bound to follow them⁵. That discretion is exactly why the form matters: it is the clearest signal you can give about who you want the money to go to.

You can name anyone, including a friend, a partner, a relative or a charity⁴. There is no limit on the number of beneficiaries you can name⁵, and you can change your nomination at any time⁶. Each pension you hold needs its own form, because each scheme keeps its own record⁷.

Nominating a beneficiary: choosing who inherits your pension

A nominated beneficiary is the person who will get your pension pot if you die before reaching your scheme's pension age⁹. With defined contribution pensions you can choose who that is, and the money can be left to anyone you nominate¹⁰. That is a wider group than many people assume. Beneficiaries can be anyone: a friend, a partner, a relative, even a charity⁴. You can leave your money to loved ones such as a partner, friends or children, and you might also nominate a charity².

The rules are more generous than they once were. Thanks to the Freedom and Choice in Pensions measures introduced in 2015, you can nominate anyone you like to inherit your pension, whether that is a husband, wife or partner, children, close friends or a charity¹⁰. You can also name a non-UK resident as the beneficiary of your pension, though some schemes place restrictions on how non-UK residents can take the money, and a non-UK resident may only be able to inherit as a lump sum¹¹.

There is no limit on the number of beneficiaries you can nominate to receive some or all of your pension⁵. Under current pension rules you are principally able to leave your pension to any person or persons you nominate, a registered charity, a trust, or a combination in any proportion⁵. A nominee can be any other person, even if they are not your dependant, and can also be a charity¹².

One point that catches people out: private pension schemes are not legally required to extend survivor benefits to unmarried or unregistered partners, but you can nominate someone to benefit from your pension when you die⁹. Naming that person is what puts them in the picture.

The expression of wish form explained

The document goes by several names. You might see an expression of wishes referred to as a letter of wishes, nomination of beneficiaries, nomination of wishes, or a nomination form⁵. Whatever it is called, its purpose is the same: it is your way of telling your scheme administrator who you would like your beneficiaries to be⁵.

An expression of wishes form relates to any unused funds in a defined contribution pension when you die, including untouched pots and pots you have started taking income or lump sums from⁵. So it covers money you have not touched as well as money you have already drawn on. You can nominate anyone you like in your expression of wishes, including an individual, a UK registered charity operating for charitable purposes, or a trust⁵.

The important caveat is the legal one. Usually, your pension provider, known as a trustee, will use its discretion to decide who will receive your pension, and will consider your wishes but is not legally bound to follow them⁵. While nominating a beneficiary is not legally binding, completing it is important¹². In practice, trustees follow a clear, recent nomination in almost every case, because it tells them what the member wanted. The discretion exists so that a scheme can pay someone who was financially dependent on you even if the form is out of date, or deal sensibly with a form that names someone who has since died.

The document is usually called an Expression of Wish, and it can usually be completed online¹⁰. It can usually be updated at any time free of charge¹⁰.

How to nominate through your pension provider's website

The route depends on your provider. You can fill in or update what is known as an expression of wish form by logging in to the online account for each pension you hold, or by contacting the scheme directly¹. Depending on your pension provider, you may be able to add beneficiaries on your online account, or you may need to fill out a paper form to confirm this¹².

For a personal pension, your provider will ask you to complete an expression of wish form, which tells them who you would like to receive your pension¹³. You can nominate a beneficiary by completing an expression of wish form, so your pension can be paid to your loved ones¹⁴. You can do this by completing a nomination or expression of wish form².

Some schemes run the process through a member website. The Pension Protection Fund, for example, lets members nominate an eligible beneficiary to receive payments after they die¹⁵, and the Financial Assistance Scheme uses the same wording¹⁶. If you are a member of a scheme that has moved into the protection fund, that is where the nomination sits.

State Pension is a separate matter. To nominate someone to collect State Pension, you contact your account provider¹⁷. That is not the same as a death benefit nomination on a private pension, and it does not pass on a pot.

Workplace, private and SIPP pensions: the same form, different providers

The form is broadly the same idea across scheme types, but who you deal with differs. In a defined contribution workplace pension scheme, your employer chooses a pension provider to invest your pension contributions⁶. The nomination, though, is between you and the scheme, not your employer. Most private and workplace pension schemes ask you to choose who you want to leave your pension to, using an expression of wish or nomination form, and to keep this up to date³.

A personal pension is one that you arrange yourself: you choose the provider and decide how your contributions will be paid, and you might do this through an independent financial adviser¹⁸. Personal pensions are provided by insurance companies, often through banks and building societies, and sometimes through your workplace¹⁹. Some employers offer personal pensions as workplace pensions²⁰. Other people and family members can pay a personal pension on your behalf²¹.

A self-invested personal pension works the same way on nominations. The trustees will follow your wishes to pass the pension to the nominated beneficiary²². You can choose a charity as the nominated beneficiary of your pension if it is a defined contribution pension scheme¹¹.

If you are unsure which type you hold, the types of pension and investment provider page sets out the differences, and workplace pension providers and master trusts covers who runs workplace schemes.

Where to get the form if you cannot do it online

Not every provider offers an online nomination, and not everyone wants to use one. Where a paper route is needed, the pattern across pensions and benefits is well established: you can apply online, by phone or by post²³, and providers will post a form on request.

For State Pension claims, you need to phone the Pension Service to get a State Pension claim form posted to you, and send the completed form to Pension Service 8, Post Handling Site B, Wolverhampton, WV98 1AF²⁴. In England, Scotland or Wales you can claim online through Get your State Pension on GOV.UK, or by phone or post by contacting the Pension Service²⁵. In Northern Ireland you claim online through Get your State Pension on nidirect, or by phone or post by contacting the Northern Ireland Pension Centre²⁵. Outside the UK, you claim by email or phone through the International Pension Centre, or by post using the International State Pension claim form²⁵, and you send the international claim form to the International Pension Centre, whose address is on the form²⁶.

If you use assistive technology and need an accessible format, you can email accessible.formats@dwp.gov.uk²⁷. If you cannot apply online for Carer's Allowance, you can call the Carer's Allowance Unit on 0800 731 0297²⁸.

For a private pension nomination, the simplest route is to contact the scheme administrator directly and ask for the expression of wish form. If you cannot find the scheme, the finding lost pensions and the Pension Tracing Service page explains how to track it down.

What to check before you submit your nomination

A nomination is only useful if it is complete, current and held by the right scheme. A few checks before you send it.

• Every pot has its own form. A nomination is made scheme by scheme. If you have more than one employer or pension provider, each of them will send a separate form P60²⁹, and the same principle applies to nominations: each scheme holds its own record.
• The details are current. If you belong to a pension scheme, you may want to change your nominated beneficiary³⁰. You may want to change the nominated beneficiary for your pension when you remarry or form a new civil partnership⁹.
• The split is clear. With no limit on the number of beneficiaries, you can name several people and set out proportions. Vague wording invites the trustees to interpret it.
• You have not relied on your will. A pension is not usually covered by your will as it sits outside your estate⁴. If you have left everything to one person in your will, that does not move the pension.
• You know who decides. The trustees will follow the expression of wish to pass the pension to the nominated beneficiary²², but they retain discretion⁵.

If a transfer is part of your planning, the steps are: check your current scheme allows transfers out, make sure you will not lose any benefits, decide which scheme to transfer into, check if you need to pay for financial advice, ask your current provider for a transfer value, and ask the new scheme to start the transfer³¹. In some cases it is also possible to transfer to a new pension provider after you have started to draw retirement benefits³².

What happens to your pension if you have not nominated anyone

The scheme still has to decide, but it does so without your input. Trustees look at who depended on you and who you were close to. That can work out, but it can also leave an unmarried partner, a stepchild or a friend with nothing, because private pension schemes are not legally required to extend survivor benefits to unmarried or unregistered partners⁹.

There is a timing rule worth knowing. For a death before age 75, the money is paid to your nominated beneficiaries within two years of your pension provider being aware of your death⁸. That two-year window matters for the tax treatment of the payment, so a form that helps the scheme pay quickly is doing real work.

Pots can also go unclaimed. A personal pension scheme can treat benefits as dormant if any of four conditions is met, including at least 7 years since the scheme was notified of a death with no communication, or where the person would be at least 120 years old³³. That is the legal backstop for money nobody has asked for.

If you are dealing with a death and a scheme is being slow, the what happens to your pension when you die page covers the process, and inheriting a partner's State Pension deals with the State Pension side.

Who to complain to if a nomination is ignored

If a scheme pays the wrong person, or refuses to pay someone you named, there is a route. The Pensions Ombudsman looks at executive, group and personal pension plans, self-invested personal pensions, small self-administered pension schemes, workplace, employer and stakeholder pension schemes, free standing additional voluntary contribution schemes, and annuities and section 32 buy-out policies³⁴. It also covers workplace, employer and stakeholder pension schemes, small self-administered pension schemes, self-invested personal pensions, free standing additional voluntary contribution schemes, annuities and section 32 buy-out policies, and executive, group and personal pension plans³⁵.

The Financial Ombudsman Service covers advice to take out a personal pension, including group personal pensions, stakeholder pensions and self-invested personal pensions, along with advice to transfer from a defined benefit occupational pension scheme, advice to take out an annuity or go into drawdown, advice on investments in SIPP, EPP or SSAS plans, advice about management of a personal pension portfolio, and administration of a personal pension scheme including SIPPs, group personal pensions and annuities in payment³⁵.

For a workplace pension problem, missing payments to your workplace pension and employer non-compliance with pension duties are reported using a different form from the one used for other concerns³⁶. The Pensions Ombudsman has published a case study on death benefits³⁷, which shows how these disputes are decided in practice.

Free, impartial guidance is available from Pension Wise, which offers face-to-face appointments held at Citizens Advice offices, or by telephone or online³⁸. The Pension Wise: free guidance on your pension options page explains what it covers.