Who have you put as your DC pension beneficiary?

[Junioh]

I was just flagged to do this when I logged into my DC pension account. I understand these pension pots are handled outside of your will, and may be more favourable in terms of inheritance tax but I don't understand the details.

Currently input DH as the sole beneficiary, as DC are too young to inherit lots of money. However, I wasn't sure if it would be more tax efficient to nominate multiple beneficiaries?

You would usually nominate your spouse or partner if you have one. If you don’t then your DC.
The rules on IHT for DC pots are changing in April 2027.

When the new IHT rules come in you pay IHT on the size of your estate including the DC pot so number of beneficiaries won’t matter. No IHT if it goes to a married spouse but there could be if you leave it to an unmarried partner or your children.
There are more complicated rules on tax they might pay when they withdraw the money from the pot on top of IHT.

A financial advisor friend said nominate your children until 5 April 2027, after that date nominate your spouse.

That's a bit blunt! A bit more consideration to the individual situation would be wise.

Mine is DH as if I died unexpectedly early, he would need my DC pot to compensate for my lack of contribution, & vice versa. IF we get to a stage of life where we don't think we will need what's left in our DC pots, that's the time to shift it to DC.

DC pots shouldn't really be an IHT planning device, most of us save into them to ensure we have a decent standard of living in retirement.

Wait, not even DC and spouse before 2027? Just DC?

I hoped the poster misunderstood / misheard her FA friend's advice...

What has your DH done with his pension pots - are you the beneficiary?

My kids, it was DH but he cheated on me. If i die it will be a nice big fuck you to him.
Yes we are OK & still together.