Martin Lewis has issued a stark warning to millions of people across the country who are paying into a workplace or private pension scheme. According to figures from the Office for National Statistics (ONS), in April 2021 some 22.6 million employees across the UK were saving for their retirement through a workplace pension.
However, many people building a pension pot to help boost their State Pension in later life may be unaware that you cannot put a pension into your will. The consumer champion told viewers of The Martin Lewis Money Show Live on Tuesday that the only way to ensure your private or workplace pension goes to the right people (or person), is to complete an ‘Expression of Wishes’ form with your employer.
The financial journalist said: “You can’t put your pension in your will.”
He continued: “If you want to leave your pension to someone, get on to your company or private pension and fill out an ‘Expression of Wishes’ or ‘nomination’ form which tells the trustees or tells the company who you want your pension assets to go to if you die.”
And for people who already have those forms completed and attached to their pension, Martin urged them to make sure the information held is up to date - especially if your relationship status has changed.
He said: “Make sure it’s up to date - you don’t want to leave it to your ex-husband or ex-wife if you don’t want the money to go to them anymore. So, that’s an important thing to look at too.”
Alison from Glasgow appeared on this week’s show via video link and asked Martin if her 18-year-old son would automatically be entitled to her and her husband’s savings and property if they both passed away.
As Scots law is different to English law, Martin had solicitor Austin Lafferty on-hand to respond to Alison’s query. He said that “yes” everything would go to Alison’s son, but issued a warning over whether or not that would happen automatically.
The consultant solicitor and member of The Law Society Scotland, said: “Nothing is automatic in the law.
“If you do not make a will then the amount of legal cost, the time involved and the hassle is increased so the best idea is to make clear wills - yourself and your husband - and decide who’s going to get the estate when one of you dies and who’s going to get it when you both die.”
Free wills month
Martin also explained that a solicitor-drafted will is the “gold standard” of will writing and the best way to ensure your money is passed on to the right people.
March is free wills month which means if you are over 55 and live in certain parts of the country, you can book an appointment with a solicitor to get a free will drawn up.
The only caveat is that you must leave a small donation - £200 - to one of the organisation’s supporting charities.
The free will service is available this month to eligible people in:
- Glasgow
- Bristol
- Cardiff
- Essex
- Leeds
- Liverpool
- London
- Newcastle
Find out more on the free wills month website here.
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