How to pass on your pension savings to your loved ones

pension savings

Pensions

Julie Hutchison

1st June 2015 at 2:59pm

Your pension is your life savings you’ve built up to give you the retirement you want.

Since new pension rules came into effect in April, pensions have become more flexible – including a cut in tax when a pension is passed on. You can read more about those tax changes which mean your loved ones can now inherit more of your pension here.

Plan who inherits your pension

With more money able to be passed on, it’s never been more important to plan who you’d like to inherit it.

What’s not always well known, however, is that your Will doesn’t usually control who inherits your pension. That final, crucial decision is down to your pension provider who makes reference to who is named on your Beneficiary Nomination form. If you don’t have this in place, your pension savings may not go to the person, or people, you wanted them to.

Beneficiary Nomination form

All you need to do is request a Beneficiary Nomination form from your pension company. If it’s Standard Life, you can do this easily online for some of our pensions. You can register here to use our online services and then name your beneficiary or beneficiaries via your online account.

It’s vital, too, to keep your Beneficiary Nominations up-to-date, as life changes and your wishes may not be reflected in the form you completed ten years ago. It’s particularly important following major life events such as the birth of children or divorce.

If you want more control over who inherits your pension, don’t delay in completing your Beneficiary Nomination.

Useful information

The Gov.uk website also has useful information on inheriting private pensions and the tax rates that apply here.

This article is not financial advice. Standard Life is not responsible for the content on any external websites. Tax and legislation can change in the future and this represents our understanding of the rules in May 2015. A personal pension is an investment. Its value can go up or down and may be worth less than you paid in.

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