Does my will cover my pension?

No. Most UK workplace and personal pensions are written in a discretionary trust, which means they sit outside your estate and are not covered by your will or by the intestacy rules. Your pension pot passes according to whoever you have nominated with your pension provider — not whoever inherits under your will. The only exception is a very small number of old-style occupational schemes where the benefit is a debt payable to your estate, but this is rare.

What is a pension nomination of beneficiaries?

A nomination of beneficiaries (also called an expression of wishes or death benefit nomination) is a form you complete with your pension provider telling the trustees who you would like to receive your pension pot when you die. The trustees of the pension scheme have legal discretion over who actually receives the money, but in practice they almost always follow a valid, up-to-date nomination. You can usually complete or update it online through your pension provider's portal.

Is a pension nomination legally binding?

No. Because the pension is held in trust, the trustees retain discretion over who receives the death benefit. Your nomination is a strong guide to their decision but not a binding instruction. This discretionary structure is deliberate: it keeps the pension outside your estate for inheritance tax purposes. In practice, trustees follow nominations in the overwhelming majority of cases, especially where the nomination is recent and clearly identifies the intended beneficiaries.

What happens to my pension if I die without a nomination?

If you have no valid nomination in place, the trustees will use their own discretion to decide who receives your pension pot. They typically look first to a surviving spouse or civil partner, then to any financial dependants or children. However, if no clear beneficiary is identified, they may pay the pension into your estate — which means it becomes subject to probate delays and potentially to inheritance tax. An up-to-date nomination avoids this entirely.

Are pensions subject to inheritance tax in the UK?

Currently (until 5 April 2027), most pensions held in a discretionary trust sit outside your estate and are not counted for inheritance tax purposes. The Finance Act 2026 changes this: from 6 April 2027, unspent pension pots will be included in your estate for IHT calculations. This makes pension planning — including a clear, up-to-date nomination — even more important. Speak to a financial adviser if your pension is large enough to create an IHT liability.

Can I nominate multiple beneficiaries for my pension?

Yes. You can split your pension between multiple beneficiaries and specify the percentage each should receive — for example, 50% to your spouse and 25% each to two children. You can also nominate a trust (useful for minor children or a vulnerable dependant) or a charity. Keep the total at 100% and name each beneficiary with their full name, date of birth, and relationship to you to avoid ambiguity.

Pension Nomination UK: Who Gets Your Pension When You Die? (2026)

Why your pension bypasses your will

UK workplace and personal pensions are almost always written in a discretionary trust. This means the pension pot is legally owned by the trustees of the pension scheme, not by you personally. When you die, the trustees have the legal power to pay the death benefit to whoever they choose.

Because the pension does not form part of your legal estate, it is not covered by your will and it does not pass under the intestacy rules if you die without a will. It is also, for now, not subject to inheritance tax — though this changes from April 2027 (see below).

The mechanism through which you guide the trustees is called a nomination of beneficiaries or expression of wishes. This is a separate document you file with your pension provider — not your will.

What is a nomination of beneficiaries?

A nomination (sometimes labelled “expression of wishes” or “death benefit nomination”) is a form you complete with your pension provider telling the trustees who you want to receive your pension pot when you die, and in what proportions.

The trustees are not legally bound to follow your nomination — that is what keeps the pension outside your estate for IHT purposes. But in practice they follow valid, up-to-date nominations in the vast majority of cases. An out-of-date nomination (for example, naming an ex-spouse) or no nomination at all creates risk: the trustees must use their own discretion, and the outcome may not match your wishes.

Who qualifies as a beneficiary?

Pension scheme rules vary, but most allow you to nominate:

A spouse, civil partner, or unmarried partner
Children (including step-children and adult children)
Other financial dependants (such as elderly parents you support)
A discretionary trust (useful when a beneficiary is a minor or has a disability)
A charity
Your own estate (though this loses the IHT and probate advantages)

You can split the nomination between multiple beneficiaries by percentage. Ensure the percentages total exactly 100%.

Death in service and life insurance in trust

Many employers provide death in servicecover, typically paying a lump sum of two to four times your salary. This is also held in a discretionary trust and requires a separate nomination — usually through your employer's HR or benefits portal.

If you hold a personal life insurance policy written in trust, the same principle applies: the policy proceeds bypass your estate and go directly to your chosen beneficiaries. If your life insurance is not in trust, the payout forms part of your estate and may be subject to IHT and probate delays. Writing a policy in trust is a simple step that most insurers offer for free.

The April 2027 inheritance tax change

Under the Finance Act 2026, the inheritance tax treatment of pensions changes on 6 April 2027. From that date, unspent defined contribution pension pots will be included in your estate for IHT calculations. This will affect anyone whose total estate (including pension) exceeds the available nil-rate band allowances.

The practical implication is that pension planning — including reviewing your nomination and considering whether to draw down pension assets before other assets — becomes more important in the run-up to April 2027. A financial adviser can model the impact on your specific situation.

Defined benefit (final salary) pensions are treated differently: they typically pay a spouse's pension or a lump sum on death rather than an unspent pot, so the IHT rules work differently. Check your scheme's rules directly.

How to find old pensions

Many UK adults have pension pots from previous employers that they have lost track of. You can trace these using the government's free Pension Tracing Service at gov.uk/find-pension-contact-details. Once located, contact the scheme administrator to update your address details and complete a nomination.

Get your pension and life insurance nominations right

WillSafe UK's Pension & Life Insurance Beneficiary Guide walks you through completing nominations for every type of pension, writing a life insurance policy in trust, and reviewing your beneficiary position in light of the April 2027 IHT changes.

Pension Beneficiary Guide — £19.99 Essentials Bundle — £89.99

How to nominate a pension beneficiary: step-by-step

List every pension you hold: Gather details of all your pensions: workplace pensions (current and old employers), personal pensions (SIPP, stakeholder), and any defined benefit or final salary pensions. For old workplace pensions, trace them using the government's free Pension Tracing Service at gov.uk/find-pension-contact-details. Death in service cover from your current employer also needs a nomination — check your employment benefits portal.
Log in to each pension provider and find the nomination form: Most pension providers let you complete or update a nomination of beneficiaries online. Look for 'death benefit nomination', 'expression of wishes', or 'beneficiary details' in your account settings. If you cannot find it online, call the provider's customer services team and ask for a paper nomination form. For defined benefit schemes, contact the scheme administrator directly.
Complete the form with full beneficiary details: For each beneficiary, provide their full legal name, date of birth, relationship to you (e.g. spouse, child), contact address, and the percentage of the death benefit you want them to receive. Make sure the percentages total 100%. If nominating a trust for a minor child, include the trust name and trustee contact details. Sign and date the form as required by the provider.
Submit and keep a copy: Submit the nomination to the provider and confirm that it has been recorded on your account. Download or print a copy and store it with your will and other important documents. Tell your executor or next of kin that a nomination exists and where to find it — they will need to contact the pension provider promptly after your death.
Review your nomination after every major life event: Marriage, divorce, separation, birth or adoption of a child, or the death of a named beneficiary should all trigger an immediate review of your pension nominations. Unlike a will, your pension nomination does not automatically update when you marry or divorce. A nomination made in favour of an ex-spouse, for example, remains valid until you actively change it. Review all pensions at least every three to five years even without a major life event.

When to review your nomination

Unlike a will, a pension nomination does not automatically update when your circumstances change. Review and update your nominations after any of the following:

Marriage or entry into a civil partnership
Divorce or dissolution of a civil partnership
Separation from a long-term partner
Birth or adoption of a child
Death of a named beneficiary
A named beneficiary developing a serious disability or becoming financially dependent
Starting a new job (new employer pension requires a new nomination)
Taking out a new personal pension or SIPP

As a rule, review all your nominations when you next update your will — keep the two aligned.

Frequently asked questions

Does my will cover my pension?: No. Most UK workplace and personal pensions are written in a discretionary trust, which means they sit outside your estate and are not covered by your will or by the intestacy rules. Your pension pot passes according to whoever you have nominated with your pension provider — not whoever inherits under your will. The only exception is a very small number of old-style occupational schemes where the benefit is a debt payable to your estate, but this is rare.
What is a pension nomination of beneficiaries?: A nomination of beneficiaries (also called an expression of wishes or death benefit nomination) is a form you complete with your pension provider telling the trustees who you would like to receive your pension pot when you die. The trustees of the pension scheme have legal discretion over who actually receives the money, but in practice they almost always follow a valid, up-to-date nomination. You can usually complete or update it online through your pension provider's portal.
Is a pension nomination legally binding?: No. Because the pension is held in trust, the trustees retain discretion over who receives the death benefit. Your nomination is a strong guide to their decision but not a binding instruction. This discretionary structure is deliberate: it keeps the pension outside your estate for inheritance tax purposes. In practice, trustees follow nominations in the overwhelming majority of cases, especially where the nomination is recent and clearly identifies the intended beneficiaries.
What happens to my pension if I die without a nomination?: If you have no valid nomination in place, the trustees will use their own discretion to decide who receives your pension pot. They typically look first to a surviving spouse or civil partner, then to any financial dependants or children. However, if no clear beneficiary is identified, they may pay the pension into your estate — which means it becomes subject to probate delays and potentially to inheritance tax. An up-to-date nomination avoids this entirely.
Are pensions subject to inheritance tax in the UK?: Currently (until 5 April 2027), most pensions held in a discretionary trust sit outside your estate and are not counted for inheritance tax purposes. The Finance Act 2026 changes this: from 6 April 2027, unspent pension pots will be included in your estate for IHT calculations. This makes pension planning — including a clear, up-to-date nomination — even more important. Speak to a financial adviser if your pension is large enough to create an IHT liability.
Can I nominate multiple beneficiaries for my pension?: Yes. You can split your pension between multiple beneficiaries and specify the percentage each should receive — for example, 50% to your spouse and 25% each to two children. You can also nominate a trust (useful for minor children or a vulnerable dependant) or a charity. Keep the total at 100% and name each beneficiary with their full name, date of birth, and relationship to you to avoid ambiguity.