Martin Lewis Urges Divorcees to Update Pension Beneficiaries

Martin Lewis warns divorced individuals to update their pension nomination forms to prevent ex-partners from inheriting their pension savings. Failure to do so can lead to disputes and legal battles, as pension providers decide who receives the funds.

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Martin Lewis Urges Divorcees to Update Pension Beneficiaries

Martin Lewis Urges Divorcees to Update Pension Beneficiaries

Martin Lewis, the renowned money-saving expert, has issued an urgent warning to individuals who have gone through a divorce, emphasizing the critical importance of updating their pension nomination forms to prevent ex-partners from inheriting their pension savings in the event of their death.

In a recent social media post, Lewis stressed that pension savings cannot be left in a will, and instead, the pension provider will decide what to do with the funds if the individual dies before taking them out. He explained that an "expression of wishes" or nomination form tells the pension provider who the individual prefers to receive their pension savings if they die before retiring.

Why this matters: This oversight can have significant financial implications for families and loved ones, leading to potential disputes and legal battles. Moreover, it highlights the importance of regularly reviewing and updating financial arrangements to ensure they align with changing personal circumstances.

Each pension provider has its own expression of wishes form, which typically asks for the name and address of the beneficiary, their relationship to the pension holder, and the percentage of the pension savings to be allocated to each beneficiary. Lewis emphasized that it is essential to update the form when experiencing a change, such as moving house or getting a divorce, and to fill out a separate form for each pension scheme.

To illustrate the potential consequences of failing to update pension nomination forms, Lewis shared a cautionary tale of a woman who neglected to update her form after her divorce. When she passed away, her ex-husband was still listed as the beneficiary, leading to a "nightmare" for her family, who had to contest the form.

Lewis advised individuals to check their pension provider's website for the expression of wishes form or contact them directly if they cannot locate it online. He urged people to update their forms to reflect any changes, such as a divorce or change of address, and to ensure they have a separate form for each pension scheme they are enrolled in.

By taking these steps, individuals can ensure that their pension savings are distributed according to their wishes, avoiding potential disputes and nightmares for their loved ones. Lewis's warning serves as a timely reminder for divorcees to take control of their financial future and protect their assets.

Key Takeaways

  • Pension savings can't be left in a will; update nomination forms instead.
  • Expression of wishes forms dictate who inherits pension savings.
  • Update forms after divorce, address change, or other life changes.
  • Fill out a separate form for each pension scheme.
  • Check pension provider's website for expression of wishes forms.