More than half of people don’t know what happens to their pension when they die

The Money and Pensions Service (MaPS) has issued a Press Release setting out the findings from of a survey of over 2,500 UK adults with a pension, that shows that only 41% correctly said that their pension would normally go to their nominated beneficiary in the event of their death. This leaves more than 26 million pension savers unsure what would happen to their pension or who would receive it. 

According to the findings:

• 23% of those surveyed incorrectly believed their pension would go to their next of kin automatically, 
• 11% said they did not know,
• 11% thought it would go to the Government, 
• 8% their employer, and
• 7% their pension provider. 

Additionally, the 20% did not know who they had nominated to receive any of their pensions.  The research highlights that it is important that pension savers check both that they have made a nomination and that their nomination is up to date. 

Source: https://maps.org.uk/en/media-centre/press-releases/2023/more-than-half-of-people-dont-know-what-happens-to-their-pension-when-they-die# 

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.