Pension Planning UK 2026/27 — How Much You Need and How to Get There

What Is a Pension Expression of Wishes and Why Does It Matter? — UK 2026/27

A pension expression of wishes tells your provider who you want to receive your pension pot when you die. It is not legally binding, but it is vital — especially after life changes. Here is everything you need to know.

Pension information is based on current UK legislation. Pensions are regulated by the FCA and The Pensions Regulator. This is not financial advice — consider consulting an FCA-regulated financial adviser.

Your pension will not pass under your will — it is distributed by the pension trustees, guided by your expression of wishes. If you have never completed one, or have not reviewed it since a major life change, your pension pot could end up with the wrong person.

What Is an Expression of Wishes?

When you die, the trustees of your pension scheme decide who receives the death benefits — typically a lump sum from the pension pot, a dependant’s income pension, or both. They make this decision using:

  1. Your expression of wishes (nomination form) — what you have told them you want
  2. Scheme rules — any constraints in the pension’s governing documents
  3. Trustee discretion — their independent judgement

Because the pension sits outside your estate, your will is irrelevant to this decision. The only way to direct the pension is through the expression of wishes held by each provider.

Why the Non-Binding Nature Matters for Tax

The reason expressions of wishes are not legally binding is deliberate. If you had a binding right to direct where your pension goes on death, it would be treated as your asset — part of your estate — and subject to 40% Inheritance Tax.

By leaving discretion with the trustees (guided by your wishes), the pension currently sits outside the estate and avoids IHT. This is one of the key tax advantages of pension savings over other assets.

Note: From 6 April 2027, the government plans to include unspent pension pots in the estate for IHT purposes. The tax position on pension death benefits will change, but the expression of wishes process will remain the mechanism for directing benefits.

Who Should You Nominate?

Relationship Can nominate? Notes
Spouse / civil partner Yes Usually receives tax-free death benefit if under 75
Unmarried partner Yes Must be clearly identified; provide full name and address
Children (any age) Yes Can specify under-18 via trust
Grandchildren Yes May need a trust for minors
Friend or non-family Yes Trustees have discretion to follow
A trust Yes Provides control over distribution, especially for minors
A charity Yes Eligible for nomination

You can split the nomination: for example, 60% to your partner, 20% to each of two children.

Tax on Death Benefits After the Expression of Wishes

Age at death Tax on lump sum death benefit
Before 75 Tax-free to beneficiaries (Income Tax)
At or after 75 Taxed at beneficiary’s marginal rate
IHT (to April 2027) Outside estate — no IHT
IHT (from April 2027) Planned to be included in estate

How to Complete or Update Your Expression of Wishes

  1. Contact your pension provider — this is typically done online via your pension account, or via a downloadable form
  2. For workplace pensions: contact your HR department or the scheme administrator
  3. For SIPPs and personal pensions: log in to your provider’s portal or call them directly
  4. For multiple pensions: update each one separately — there is no central register

What to include in your nomination:

  • Full name and date of birth of each beneficiary
  • Their relationship to you
  • The percentage share you want each to receive
  • Contact details (address, email) to help the trustees locate them
  • Your signature and date

When to Update It

Life event Action needed
Getting married Update to include new spouse
Getting divorced Remove ex-spouse; add new nominees
New partner (unmarried) Add partner — they are not automatically included
New child or grandchild Update proportions
Death of a nominated beneficiary Remove and re-nominate
Moving house Update your own address held by provider
No change in years Review every 3–5 years to confirm it still reflects your wishes

What Happens Without an Expression of Wishes

If you die with no expression of wishes on file, the trustees must decide entirely at their own discretion — typically following the scheme rules. In most schemes, the default is to pay to your estate (which then attracts IHT and probate delays) or to your legal next of kin. This may not be who you intend to benefit — particularly if you have an unmarried partner, children from a previous relationship, or a complicated family situation.

See our SIPP death benefits guide, pension before 55 guide, and inheritance tax guide.

Sources

  1. HMRC — Pensions: death benefits and nominations
  2. The Pensions Advisory Service — Expression of wishes