Have you thought about what will happen to your retirement savings if you die? It’s not the most cheerful topic, but it’s a relief to know that your loved ones are provided for.
One of the benefits of being a pension scheme member is that your beneficiaries could receive a cash lump sum if you die. The amount will depend on your circumstances at the time of your death.
To make sure the money is paid in line with your wishes, it’s important to tell the Trustee who your beneficiaries are. You can nominate an individual, several people, a charity or organisation. Your Expression of Wish is confidential, so the people or organisations you’ve listed won’t know if you’ve added or removed them as a beneficiary.
Nominating a beneficiary may speed up the decision about where the money goes, which will spare extra heartache and worry at a difficult time for your loved ones.
The cash lump sum is normally tax free. But if the Trustee doesn’t know where to pay the money, it could take longer to pay out. This means it might be taxed.
Many people think everything they own will be given out according to their will when they die. It’s important to remember that if you die, your pension is separate to the rest of your estate. An Expression of Wish is not the same as a will. Your Expression of Wish shows where you’d like a lump sum from your pension to go if you die before you claim it, which is not covered in your will.
How do I make an Expression of Wish?
Defined Benefit (DB) members can register for and log into their online account to create and update their Expression of Wish. Alternatively DB members can download and complete the DB member form.
Members of the LifeSight Master Trust can review and update their Expression of Wish by logging in to their LifeSight Account and completing their 'nominated beneficiary' details.
Life Assurance is also provided to all current employees. For employees who are not a member of a pension scheme, please complete and return the Non-LifeSight member form.
It’s important to keep your expression of wish details up-to-date. You should consider submitting a new form after a significant change in your circumstances, so the Trustee knows your wishes are current. This will help the Trustee make the right decision in the event of your death.