Pension and Will Mistakes: Common Errors to Avoid

The Fundamental Misunderstanding

The single biggest mistake people make with their pensions and wills is assuming they are the same thing. They are not. Your will governs the distribution of your estate — your property, savings, investments, and personal possessions. Your pension sits outside your estate entirely and is governed by a separate document: your expression of wish form (also called a nomination form).

This distinction exists because pensions are held in trust by the pension scheme on your behalf. When you die, the scheme trustees — not the executor of your will — decide who receives the pension death benefits. While they will consider your nomination, the legal authority rests with them, not with your will.

This means you need two separate, coordinated documents to ensure your wealth goes where you want it: a will for your estate, and expression of wish forms for each of your pensions.

The Seven Most Common Pension and Will Mistakes

Mistake 1: Assuming Your Will Covers Your Pension

As explained above, your will has no legal authority over your pension. If you have only written a will and not completed expression of wish forms for your pensions, your pension provider will decide who receives your death benefits at their discretion. This may not be the person you would have chosen.

Mistake 2: Not Updating Your Pension Nomination After Divorce

In England and Wales, marriage automatically revokes a previous will (unless the will was made in contemplation of that marriage). However, divorce does not automatically revoke a pension nomination. If you nominated your ex-spouse as your pension beneficiary before the divorce, they could still receive your pension death benefits unless you actively update the form.

This catches many people out. After a divorce, you should immediately update the expression of wish forms for all your pensions to reflect your current wishes.

Mistake 3: Never Completing a Nomination Form

Many people, particularly those who are auto-enrolled into workplace pensions, never complete a beneficiary nomination at all. Without a nomination, the trustees must exercise their own judgment about who should receive your pension. This can cause delays of months and may result in your pension going to someone you would not have chosen.

Mistake 4: Forgetting About Old Pensions

The average UK worker changes jobs every five years, which means many people accumulate multiple pension pots from different employers over their working life. Each pension needs its own nomination form. It is common for people to have pensions from years ago with either no nomination or an outdated one naming an ex-partner or deceased relative.

Mistake 5: Conflicting Instructions

Sometimes a person's will and pension nomination give conflicting instructions. For example, a will might leave everything to the surviving spouse, while a pension nomination names the adult children as beneficiaries. While these are legally independent documents, conflicting instructions can cause confusion and family disputes.

Mistake 6: Not Telling Your Family About Your Pensions

Your family cannot claim pension death benefits if they do not know your pensions exist. Many people have workplace pensions from previous employers that their family members know nothing about. When you die, these pensions may go unclaimed for years — or permanently.

Keep a record of all your pensions, including provider names, policy numbers, and nominated beneficiaries. Share this information with your family or the executor of your will.

Mistake 7: Ignoring the Tax Implications

Your pension and will should work together as part of a coherent estate plan. For example, if you have significant pension savings and other assets, the order in which you draw on them in retirement can significantly affect the tax your beneficiaries pay. Spending non-pension assets first and preserving your pension can reduce both income tax and (currently) inheritance tax for your family. Read our guide on pension estate planning for detailed strategies.

How Pensions and Wills Interact

While pensions and wills are legally separate, they do interact in several important ways:

• Estate value for IHT — currently, pensions sit outside your estate for IHT. From April 2027, they will be brought within scope. Your will and pension nominations both affect the total IHT position
• Divorce and pension sharing orders — a court can make a pension sharing order as part of a divorce settlement. This overrides your pension nomination and should be reflected in both your will and future nominations
• Trustee discretion — while trustees have the final say on pensions, they may look at your will as background evidence of your wishes, particularly if your nomination is outdated
• Guardianship of minor children — your will can appoint guardians for minor children, which may be relevant if those children are also pension beneficiaries

A Checklist to Get It Right

1. Make a will — if you do not have one, your estate will be distributed under intestacy rules, which may not match your wishes
2. Complete expression of wish forms for every pension you hold
3. Review both documents after any major life event — marriage, divorce, birth of a child, death of a nominated beneficiary
4. Ensure consistency between your will and pension nominations — they do not need to say the same thing, but they should not create contradictions
5. Create a pension record listing all your providers, policy numbers, and nominees
6. Share this information with your family, executor, or a trusted person
7. Review everything at least every two to three years

Next Steps

Review your pension nominations today. If you have not completed them, or if they are more than two years old, update them now. Ensure your will and pension arrangements work together as a coherent plan. For complex situations, speak to an FCA-regulated adviser who can coordinate with your solicitor. Get matched with an adviser for personalised guidance.