One in six UK adults with a partner do not know who will receive their pension savings if the die first, according to new research by Aviva.
This figures rises to one in four (25 per cent) of those living with a partner who are not married or in a civil partnership. This survey also shows that overall this percentage also rises among those aged 79 and over.
Women are more likely than men not to know who their named nominee is on pension documents. The survey also showed that around 3 per cent of the population said they were concerned an ex-partner was still their named beneficiary, so could inherit in the event of their death.
Aviva says this inconsistency across age groups, genders and relationship status emphasises the importance for individuals to check and update their pension beneficiary information regulator.
A pension provider isn’t legally bound by the request, but they will take it into account when they’re sorting out a pension. It adds that this simple step could help make sure that retirement savings are distributed according to an individual’s wishes, avoiding potential legal complications and emotional distress for loved ones.
Overall the majority of respondents (65 per cent) said their partner/ spouse is their named beneficiary — with one in five (20 per cent) saying they selected a family member. A small percentage say they are leaving their pension pot to a charity (4 per cent) or a friend (3 per cent).
Aviva’s director wealth managing director Jo Phillips says: ”It’s not surprising that people lose track of their pensions and cannot remember who their pension beneficiary is. Some pension policies will date back decades and it’s likely that many people will have changed jobs, moved house and may even have been married, divorced and re-married again, in the intervening years.”
She urged members to review nominees and make updates where needed, regardless of the value of their pension pot.
