Here is something most people don't know: your pension almost certainly falls outside your will.

When you die, your pension fund does not automatically pass to your estate. It sits in a separate legal wrapper, controlled by the pension trustees. What they do with it depends almost entirely on a form you may have filled in years ago — or never filled in at all.

That form is called an Expression of Wishes or a Nomination of Beneficiary form. And for the majority of UK adults, it is either missing, out of date, or pointing to the wrong person.

Why your will doesn't cover your pension

Workplace pensions, personal pensions, and SIPPs are held in a trust structure, separate from your estate. The trustees have discretion over who receives the money — but they almost always follow a valid nomination form if one exists.

This has two important consequences:

  • If you have no nomination form, the trustees will decide for themselves — and may not choose who you would have wanted.
  • If your nomination form names an ex-partner, a parent who has since died, or someone you've lost touch with, that's who the trustees will consider first.

The good news: updating your nomination form takes about five minutes. Most pension providers have it online or in the app.

Defined contribution vs defined benefit

Defined contribution pensions (workplace pensions like Nest, Aviva, Legal & General) accumulate a pot of money that can be paid as a lump sum or income to your beneficiaries. The nomination form is critical here.

Defined benefit pensions (final salary schemes, common in public sector jobs) typically pay a dependant's pension to a spouse or civil partner automatically. Nomination forms still matter for any lump-sum death benefit.

What about inheritance tax?

Currently, pension funds passed on death are largely outside your estate for inheritance tax purposes. However, from April 2027, the government plans to bring unused pension funds into the IHT calculation. If you have a large pension, speaking to a financial adviser before that date is worth considering.

The practical checklist

  • Log into every pension you hold — current employer, previous employers, personal pensions
  • Find the Expression of Wishes or Nomination of Beneficiary section
  • Check it names the right people in the right proportions
  • Update it if your circumstances have changed (marriage, divorce, new children, bereavement)
  • Do this for every pension separately — one form does not cover all schemes
Don't know how many pensions you have? The government's free Pension Tracing Service can help you locate old workplace pensions using your previous employer's name.

Record it somewhere your family can find it

Finding nomination forms after a death is genuinely difficult. Families frequently have no idea how many pensions exist, let alone who is nominated. The practical step is to record every pension provider, policy number, and nominated beneficiary in one secure place — and make sure your family knows where to look.