Nominating Beneficiaries

Overview

If you die before taking all your pension, the remaining money can pass to people you choose. Nominating beneficiaries tells us who you'd like to receive your pension if something happens to you. It's an important part of managing your pension that many people overlook.

Why It Matters

Without a nomination, we decide who receives your pension based on scheme rules. We'll look at your circumstances and try to identify appropriate beneficiaries, but this takes time and might not match your wishes. A clear nomination makes things faster and ensures your money goes where you want.

Pensions usually fall outside your will, so even if you've made a will, it won't automatically cover your pension. You need to nominate beneficiaries separately.

Who You Can Nominate

You can nominate anyone - spouse, partner, children, other family members, friends, or even charities. You can name multiple beneficiaries and specify what percentage each should receive. For example, 50% to your spouse and 25% to each of two children.

There's no limit on the number of people you can nominate. Just make sure the percentages add up to 100%.

How Nominations Work

Your nomination is an expression of wish, not a legally binding instruction. The scheme trustees have discretion over who receives death benefits. In practice, trustees almost always follow valid nominations unless there's a good reason not to.

This discretion actually has a benefit - it means pension death benefits usually avoid inheritance tax, as the money isn't part of your estate. The trustees are making the decision, not your will.

Keeping Nominations Updated

Life changes, and your nomination should change with it. Getting married, divorced, having children, or losing someone close are all reasons to review who you've nominated. An outdated nomination could mean your pension goes to someone you no longer intend.

Check your nomination every few years or after any major life event. It only takes a few minutes to update and gives you peace of mind.

What Beneficiaries Receive

What your beneficiaries get depends on your age at death and whether you've started taking your pension. If you die before 75 and haven't touched your pension, beneficiaries can usually receive it tax-free as a lump sum or income.

If you die after 75, beneficiaries pay income tax on whatever they receive, at their own tax rate. If you've already started drawing your pension, the rules depend on which option you chose and how much is left.

The exact options available to beneficiaries depend on scheme rules. We can explain what applies to your pension.

Making or Changing a Nomination

To set up or update your nomination, contact us. You'll need to provide the names and dates of birth of your beneficiaries and say what percentage each should receive. We'll confirm your nomination in writing.

If you have online access to your pension, you may be able to manage nominations yourself. Otherwise, we can send you a form or take details over the phone after verifying your identity.

If You Have No Nomination

If you haven't nominated anyone and you die, the trustees will decide who receives your pension. They'll consider your circumstances - spouse or partner, dependants, close family. This process takes longer and the outcome might not be what you would have chosen.

Don't leave it to chance. Take a few minutes to make a nomination.

For Financial Advisers

For IFAs, we can confirm current nomination details on file, death benefit options under the scheme, and the process for updating nominations. We provide information on scheme-specific rules around beneficiary designations and any restrictions that apply. Lump sum death benefit values and options can be quoted on request.