One in six adults in relationships are unaware of who would inherit their pension savings if they were to die, according to a recent Aviva survey.
This figure rises to almost one in five among those aged 79 and over, a group more likely to have experienced multiple marriages and divorces, potentially complicating their beneficiary designations.
The uncertainty is even more pronounced among cohabiting couples without legal marriage or civil partnership status, with a quarter unsure of their pension's destination.
This lack of awareness extends to the younger generation as well, with three in 10 Gen Z adults (aged 16-24) also uncertain about their pension beneficiaries.
Nearly two-thirds (65 per cent) of people said their partner or spouse is their named beneficiary, while a fifth (20 per cent) have selected a family member as their beneficiary.
One in 25 (4 per cent) are leaving pension wealth to a charity and 3 per cent have named a friend as a beneficiary, according to the survey carried out by Censuswide in February among 2,000 people who are in a couple.
Aviva emphasised the importance of regularly checking and updating pension beneficiary information.
This simple step could help to make sure that retirement savings are distributed according to someone’s wishes, avoiding potential legal complications and emotional distress for bereaved loved ones, it said.
Some people may find they can update their beneficiaries quickly in their pension app, it said.
Jo Phillips, managing director of Aviva’s direct wealth business, said: “It’s not surprising that people lose track of their pensions and therefore cannot remember who their pension beneficiary is.
“Some pension policies will date back decades and it’s likely that many people will have changed jobs; moved house and even been married, divorced and married again, in the intervening years.
“The money in your pension pot is one of your assets, just like your savings or your possessions, so we would encourage all our customers to review their pension nominees and make updates as needed.
“It’s easy to nominate a recipient. Most of the time, it can be done online without any fuss.”
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