Pension nominations and expressions of wishes explained.
An expression of wishes is the form that tells your pension scheme who to pay death benefits to. It takes five minutes to fill in — and failing to keep it current is one of the most common pension mistakes.
- ▸An expression of wishes (or nomination form) tells your pension scheme trustees who to pay your death benefits to. It's not legally binding — but trustees follow it in the vast majority of cases.
- ▸Pensions are deliberately kept outside your will. This is what allows them to sit outside your estate for inheritance tax purposes.
- ▸Nominations can usually be updated at any time through your pension provider's website or by requesting a form. There's no cost.
- ▸Life events — marriage, divorce, children — are the trigger to review. An outdated nomination can direct your pension to the wrong person.
Trusts vs expressions of wishes
Most UK pension schemes hold their assets in trust. The trustees — or, in the case of contract-based schemes like SIPPs and personal pensions, the scheme administrator — have legal discretion over who receives death benefits. They are not bound to follow anyone's instructions, including the member's.
An expression of wishes is the member's written indication of who they want to receive their pension death benefits. It's a guide for the trustees, not a binding legal instruction.
This distinction matters because it's the mechanism that keeps pensions outside the estate. If the member could legally dictate the destination of the funds — the way a will dictates who inherits a house — HMRC could argue those funds form part of the taxable estate. The trustee's discretion is what prevents this.
In practice, trustees follow the expression of wishes in almost all cases. They would typically only override it in unusual circumstances — for example, if the nominated person predeceased the member, if there are concerns about fraud or undue influence, or if the nomination is clearly outdated (naming an ex-spouse from 20 years ago with no update since).
Why pensions bypass your will
A will governs the distribution of your estate — property, bank accounts, investments held outside of trusts. Pensions are not part of your estate. They are held in trust (or under administrator discretion) and are distributed according to the scheme's rules, guided by the expression of wishes.
This means:
- Naming someone in your will does not give them your pension. Even if your will says "I leave everything to my daughter," the pension trustees are not bound by that instruction.
- Not having a will doesn't affect your pension. The pension is distributed under the scheme's discretionary rules regardless.
- The expression of wishes and the will are separate documents. Both need to be kept current, but they serve different purposes.
The practical risk is that people assume their will covers everything. It doesn't cover pensions. Someone who gets divorced, updates their will to remove their ex-spouse, but never updates their pension nomination may find the pension trustees paying benefits to the ex-spouse — because the nomination form still names them.
Updating nominations: when and how
Updating an expression of wishes is straightforward. Most providers offer an online form through the member's account dashboard. Some require a paper form. There is no charge.
The following life events are triggers to review:
- Marriage or civil partnership — a new spouse may need to be added
- Divorce or separation — an ex-spouse may need to be removed
- Birth or adoption of children — children can be nominated as beneficiaries
- Death of a nominated beneficiary — the nomination needs updating
- Entering a new relationship — cohabiting partners have no automatic entitlement unless nominated
There is no limit on how often the form can be updated. The most recent version on file with the scheme at the date of death is the one trustees will consider.
One detail worth noting: if there are multiple pension schemes (workplace pensions from different employers, a SIPP, an old personal pension), each one needs its own expression of wishes. A nomination with one provider doesn't carry across to another.
Discretionary vs binding nominations
Most UK pension schemes use discretionary nominations — the expression of wishes model described above, where trustees retain final say. This is the standard approach and the one that provides the IHT benefit.
Some schemes, particularly certain small self-administered schemes (SSASs) and some overseas pensions, allow binding nominations. A binding nomination is a legal instruction that the trustees must follow. The trade-off: if the member can direct the funds, HMRC may argue the pension forms part of the estate for IHT purposes.
For most people with a workplace pension, SIPP, or personal pension, the nomination is discretionary. The provider's documentation will confirm which type applies.
Whether discretionary or binding, the critical step is the same: fill in the form, name the right people, and review it when circumstances change. The pension inheritance calculator can model what beneficiaries would receive under different scenarios, and the pension inheritance guide covers the broader picture.
- ▸An expression of wishes is not legally binding — pension trustees retain discretion over who receives death benefits. This is what keeps pensions outside the estate for IHT purposes. [MoneyHelper]
- ▸Pensions are not governed by your will. They are distributed according to scheme rules, guided by the member's expression of wishes. [The Pensions Regulator]
- ▸Each pension scheme requires its own separate expression of wishes — a nomination with one provider does not apply to pensions held elsewhere. [MoneyHelper]
This is factual information, not financial advice. If you're unsure what's right for your situation, speak to an FCA-regulated financial adviser.