Ensure your pension doesn't end up in the wrong hands
Rates of divorce are increasing amongst over-65s according to ONS data*. Ensure you don’t slip up and leave your remaining pension to the wrong person.
Most pensions require you to set up a beneficiary for when you pass away, this is nearly always the spouse. When marriages separate and new relationships are made, often the beneficiary is not changed.
Leaving your pension to the wrong person is something that can easily happen, as many forget completing the beneficiary form in the first place, resulting in a loss to your current spouse. Don’t let this potential headache cause your family any loss and ensure your documents are up to date with your current situation.
If your family have fallen into this position, there are options available. Scheme trustees and administrators do have some leeway as to who should stand as a beneficiary. This is done by looking at their will and speaking to family and friends to provide an understanding of who the pension holder wished as a beneficiary.
We don’t want your loved ones to go through any unnecessary stress - if you are divorced, it’s best to check the details of your pension pot/s to ensure your hard-earned savings are left to the person you wish. Make sure that you repeat this exercise with all of your pension pots.
Most pension providers have different processes when handling this, depending on the type of pension that was taken out. If this doesn’t apply to you now, just make sure you keep this in mind for the future and don’t get caught out!