Have you considered what you’ll leave behind for future generations if something happens to you?
We grapple with tangible and intangible assets, like passing down family and cultural traditions, rituals, and heirlooms. Some of us want to continue to make a difference for causes we're passionate about – like nature conservation or medical breakthroughs. Or, make monetary contributions that can provide for loved ones.
Your legacy shows who and what you care for – it shows your values.
Tomorrow is never promised, so you shouldn’t delay drafting a valid Will and updating the beneficiaries on your retirement funds. It legally secures your legacy, ensuring that it lives on after you’re gone.
Importance of updating your beneficiaries
Your beneficiaries are those you have legally chosen to receive the monetary benefits from your investment funds, after you pass away.
Make it a habit to review your beneficiaries’ information every year. It’s also essential to update your beneficiaries immediately after major life events like childbirth, a marriage, a divorce or after the death of a beneficiary. By doing this, you ensure your money doesn’t end up in the wrong hands or become the cause of unending legal and family disputes.
What happens to your retirement annuity after you pass away?
When you pass away, the funds in your retirement annuity won’t automatically be paid to your nominated beneficiaries. Instead, the Pension Funds Act sets out that the fund’s trustees must decide how it should be paid out among your dependants, for instance, a spouse and children.
It’s still worth updating because trustees will place great weight on the beneficiary nomination, even though they must take the law into account.
The contract owner of retirement money may also not nominate their estate or a legal entity as a beneficiary.
Section 37C of the Pension Funds Act allows for payment into an estate only when the estate is insolvent and there are only nominees and no dependants or where there are no dependants or nominees.
Learn more about the retirement death claims process and the advantages of nominating a beneficiary on your retirement funds.
How to nominate your beneficiary
A nomination must:
A nominee will only qualify for the nomination if:
- There are no dependants
- The estate is solvent
- The nominee is still alive; and
- The nominee was not responsible for the member’s death.
How to update your beneficiary
The good news from Momentum Savings, is that you can update beneficiaries online without contacting the service centre. You can also update your beneficiaries through your financial adviser.
Beneficiary nominations save a lot of time, money and hassles, and your loved ones will only thank you for your commitment to keep their nominations updated.
No matter where you are in your financial journey, we’re here to help you find investment options for your goals and secure your legacy for future generations.
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