In you work in retail, you’re used to change.

Promotions come quickly, restructures happen overnight, and roles can shift with little warning.

But some changes happen outside the workplace; marriage, divorce, children growing up and they can also have a considerable impact on your financial future.

With these changes, there’s one area that often gets overlooked: your pension beneficiary forms.

What’s a beneficiary form?

Every pension you’ve ever built up, whether from your current employer, a previous retailer, or your own private plan, has what’s called an “expression of wish” form. This is where you tell the provider who you’d like to inherit your pension when you die.

It’s not legally binding, but trustees usually follow it closely. Without it, they’re left to make their own judgment.

Why it matters to you as a retail leader

For many of my clients in mid-to-senior retail roles, pensions are one of the largest assets they’ll ever own. Often bigger than their home. Yet while you’d never leave your departmental budget unchecked, it’s easy to let a form you filled in ten years ago gather dust (if you even filled it in at all).

That could mean:

• Your ex-spouse inheriting a six-figure sum instead of your current partner.
• Younger children missing out because you forgot to add them onto the form when they were born.
• Trustees making a decision for you, causing delays, disputes, and stress for your family at the worst possible time.

The complication of multiple pensions

If you’ve moved between retailers (or even different divisions), you probably have multiple pensions. Each one has its own beneficiary form. If just one is out of date, a significant pot might not be disrupted as per your wishes.

A beneficiary review is also a great chance to look at whether those pensions are still fit for purpose:

• Are they invested appropriately?
• Are fees eating into your growth?
• Would it be easier to manage one pension, not multiple?

What’s changing in 2027?

From 6 April 2027, unused pension savings will generally be included in your estate for inheritance tax (IHT).

That means:

• Pensions once thought “outside IHT” could now push your estate over the threshold (currently £325,000, or up to £500,000 if you include the residence nil rate band) resulting in an inheritance tax liability.
• Your beneficiaries may face tax on the inheritance, on top of any income tax if they draw it down.
• Responsibility for reporting and paying the tax will sit with your executors, adding another layer of stress.

Put simply: pensions will no longer be as straightforward to pass on as they once were. The way you structure and nominate them will matter more than ever.

A human issue, not just a financial one

Talking about death is uncomfortable. But I’ve seen first-hand how much smoother things are when these details are in place. Instead of confusion or conflict, your family has clarity. Instead of delays, they can grieve and move forward.

Updating your beneficiary forms takes minutes.

Reviewing your pension strategy takes a little longer.

But the peace of mind it creates for your loved ones is priceless.

What to do next

• Check every pension you own: old employers, current schemes, private plans.
• Update each beneficiary form to reflect your current wishes.
• Review suitability: do your pensions still align with your financial goals and the new rules coming in 2027?

An up to date beneficiary form will protect the people you love most, sparing them unnecessary stress, and making sure your legacy reflects your values.

It only takes a few minutes to update a form but the impact could last a lifetime for your family.

If you’re not sure where to start, let’s have a conversation. Together we can review your pensions, update your nominations, and give you and your loved ones peace of mind.

Please note: The content of this guide is intended for general information purposes only which is not intended to address your particular circumstances. It is based upon our understanding of current legislation and HMRC guidance, The content should not be relied upon in its entirety and shall not be deemed to be, or constitute advice. While we believe this interpretation to be correct, it cannot be guaranteed that such information is accurate as of the date it is received or that it will continue to be accurate in the future. We cannot accept any responsibility for any action taken or refrained from being taken as a result of this information.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). Your capital is at risk. Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested.

The Financial Conduct Authority does not regulate Inheritance Tax Planning. Workplace pension are regulated by The Pensions Regulator.

Category: Financial planning, Retirement