Two fifths (40 per cent) of people over 60 haven’t nominated who they want to inherit their pension when they’re gone, despite a 26 per cent increase in the number of people updating their expression of wish (EOW) between 2022 and 2024, Hargreaves Lansdown has revealed.

The research showed that this figure fell to just one in ten people (10 per cent) for those under 30, while on average, men (40 per cent) were slightly more likely than women (34 per cent) to have placed an instruction.

A pension beneficiary, which enables you to instruct who you would like to receive your pension when you die, is nominated through an EOW.

Hargreaves Lansdown head of workplace saving analysis, Clare Stinton, said not preparing an EOW was a “risky oversight” for several reasons, stating: “First and foremost, not updating your expression of wish form after key life events, such as divorce, may lead to unnecessary delays in loved ones receiving money when you die.

“It could even mean an ex-partner gets the benefit rather than a current one. This can lead to all kinds of financial issues while the situation gets sorted out,” she suggested.

“The other issue is the government’s decision to make unspent defined contribution pensions subject to inheritance tax from April 2027.

“In this case, completing an expression of wish is a small task that could make a big difference – and potentially save your family thousands of pounds."

She also highlighted the importance of timing when completing an EOW, pointing out that most people will nominate their spouse or civil partner as the main beneficiary because transfers between spouses are usually exempt from inheritance tax.

“Under the proposed changes, passing away after 2027 could land younger generations a potentially hefty tax bill if they are named on the EOW," she continued.

“On the other hand, if you’re older, or in poor health and unlikely to live to see April 2027, you can take advantage of the current more generous rules and pass money to children or grandchildren tax efficiently."

"This is only an option if your surviving partner has enough to be financially secure without your pension," she added.

“Should you live beyond the rule change, you can change your instruction – just set up a reminder so this small but mighty task doesn’t slip through the cracks."

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