UNDERSTANDING THE IMPORTANCE OF NOMINATING A BENEFICIARY

A new study reveals a startling insight. As many as one in six (15%) individuals with a partner are unclear about who will receive their pension savings if they pass away before accessing them [1]. Even more concerning, this figure rises to nearly one in five (18%) among the Silent Generation (aged 79 and older). Such statistics highlight the urgent need for improved awareness and planning regarding pension inheritance.

Equally concerning is the 3% of respondents who believe their current pension beneficiary may still be an ex-partner. While the majority (65%) of individuals name their spouse or partner as their beneficiary, others have chosen family members (20%), charities (4%) or friends (3%). However, a significant proportion remain uncertain about who will inherit their pension. This lack of clarity can lead to legal complications and emotional distress for loved ones when the time comes to distribute these assets.

IMPACT OF RELATIONSHIP STATUS AND AGE ON PENSION NOMINATIONS

Relationship status plays a pivotal role in pension nomination trends. Alarmingly, one in four (25%) individuals living with a partner but not married or in a registered civil partnership are uncertain about their pension beneficiaries. This may be due to their partner not being officially recognised as their next of kin, which leaves their pension distribution vulnerable to unintended outcomes.

Age is another key factor influencing awareness regarding pension beneficiaries. Among younger adults aged 16 to 24, nearly a third (30%) claim not to know who will inherit their pension. This could be attributed to workplace pension auto-enrolment schemes, where younger individuals often give little thought to long-term financial planning. Regardless of age or marital status, the inconsistency across demographic groups underscores the importance of regularly reviewing and updating pension beneficiary details.

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Source data: [1] The research was conducted by Censuswide among a sample of 2,000 general consumers who have a partner, whether married, in a relationship or a civil partnership. The data was collected between 07/02/25 and 10/02/25.

This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

For guidance, seek professional advice. The value of your investments can go down as well as up, and you may get back less than you invested. Past performance is not a guarantee of future results. Tax planning is not regulated by the Financial Conduct Authority.