As a nation, we often shy away from life’s harder conversations. Talking about money can feel awkward enough. Add death, wills and pensions into the mix, and most of us want to run for the hills.
But having that chat now means saving your loved ones heartache later. Once everyone knows where they stand, you can put the topic to bed and get on with life.
This year, Talk Money Week is all about having those financial conversations - something we fully support.
Why you need to nominate your beneficiaries
Many of us assume our pensions automatically pass on to our loved ones. The reality is that unless we’ve nominated someone, that decision is left to the scheme trustees. They’ll always do their best to do what’s right, but without guidance, it can make an already sad time even more difficult as it’s shrouded in uncertainty.
By nominating your beneficiaries (sometimes referred to as filling out an ‘Expression of Wish’), you’re giving trustees a clear picture of your wishes. It helps them act more quickly - making things infinitely easier on your loved ones.
Don’t be an ‘expression of wish’ statistic
It’s easy to assume your pension will automatically go to the people you love most, but that’s not always the case. Even today, many people aren’t sure how the process works.
The Money and Pensions Service (MaPS) found during Talk Money Week 2023 that only 41% of pension holders correctly understood that their pension would go to a nominated beneficiary if they died1.
It’s not that people don’t care - it’s just human nature to shy away from life’s harder conversations. But it goes to show just how important it is to take that first step.
How to nominate your beneficiaries
It’s straightforward and quick to let us know who you want your beneficiaries to be.
- Log in to PlanViewer (or activate your account if you’ve not got round to it yet).
- Go to ‘Manage my plan’ (or the Profile icon in PlanViewer if you’ve got the app).
- Click on ‘Manage beneficiaries’ and follow the steps. You can name one person, several people, or even a charity and say how much (as a %) you’d like each to receive.
I remember completing mine and it only took a few minutes. It’s massively important to me as it lets me say who I’d want to benefit from my pension. My will and life insurance make sure my husband is financially cared for, so for me it’s a means of making sure my children are looked after. I like the thought that if anything happens to me, they’ll have a nice nest egg to protect them even when I’m not around.
Just remember you need to nominate your beneficiaries for each workplace pension or self-invested personal pension that you might have.
It’s good to talk
Whether it’s talking about nominating your beneficiaries, your will, how you plan on paying for your child going to university…. It’s good to talk about money. Even when the conversations are at the more uncomfortable end of the spectrum.
Small conversations have the power to make a lasting difference. And give you peace of mind.