Pensioners risk creating large tax bills or handing over savings to unintended beneficiaries if they do not get their records in order, experts have warned.
The elderly are the most vulnerable to coronavirus, which has served as a reality check amid a sharp increase in requests for new wills.
But pension pots are not covered by wills as they do not form part of an estate. Savers must organise their nest eggs separately by providing an “expression of wishes” form to their pension company.
Insurance giant LV said it suffered a 41pc increase in the number of deaths among its pension policy holders between the end of March and mid May. This was compared with the same period in 2019.
This increase has created problems for pension trustees who must now decide who receives a deceased member’s savings.
David Stevens, of LV, said pensioners should name numerous “beneficiaries” to ensure their loved ones can benefit from their nest eggs. This list should be reviewed amid changes in circumstance, such as divorce, remarriage and the birth of children or grandchildren.
This, Mr Stevens said, would allow claims to be settled quickly and without dispute. If a saver does not update their wishes, their pot could be distributed to people they did not wish to receive it. If this is disputed by other heirs it could lead to delays in releasing the funds.
— to www.telegraph.co.uk