Greer said: “While it is fairly standard for a spouse to benefit automatically on the member’s death, other family members may not and could be left short-changed if they work on the assumption that they will receive benefits. There are lots of example where this could be damaging, not only in a financial sense, but also to the relationships between surviving family members.
“Never assume your pension will naturally pass to the most obvious person from your point of view. Often the recipient of the death benefit will be at the discretion of the Scheme. It is imperative that you make your wishes known by completing an expression of wish. Failing to nominate your preferred beneficiary can lead to discord after your death and mean extra hassle and possibly unnecessary tax for family members,” the pensions expert said.
Welcome ruling
Steve Webb, director of policy at Royal London and ex-pensions minister, said: “This is a very welcome ruling. It is totally unacceptable for cohabiting couples to be treated as second class citizens.
“With more than six million people living together as couples and the numbers rising every year, this is an issue that needs to be addressed as a matter of urgency. We need pension scheme rules which reflect the world we live in today, and not the world of fifty years ago.”
