Choosing your beneficiaries is important
Your financial adviser probably prompts you to update your beneficiaries for your retirement fund benefit occasionally. This is especially important when things change, like a new addition to the family, death, or divorce.
You may also know that you can nominate only natural persons as beneficiaries. You can’t nominate trusts, estates, or charitable organisations.
Even though the trustees must distribute your death benefit in line with the procedure specified in the Pension Funds Act, they take your wishes as expressed in your nomination into account. A nomination serves as a guideline to the trustees and makes it easier to know who to consider in the distribution process.
How to update your beneficiaries
When you nominate, you must specify the following:
- The full names of the persons.
- Their dates of birth.
- Your relationship with them.
- Any contact details.
- What percentage you would like to leave to each.
Investo clients can update their beneficiaries on momentum.co.za without contacting the service centre. They can log in, and select Investments and Savings, on their Investo product and then on Beneficiaries. Their financial advisers can update it, too.
Wealth clients can update their beneficiaries by contacting their financial advisers.
Nominations save a lot of time, money and hassles, and your loved ones will only thank you for your diligence in keeping your nominations updated.
Get financial advice
Take charge and ensure you receive a monthly income to maintain the life you've become accustomed to well into retirement.
We recommend that you get in touch with your financial adviser to plan for your retirement together. South African retirement funds must also give their members access to retirement benefit counselling when they are close to retirement and at retirement.
Select the “Find an adviser” button below if you don't have a financial adviser or speak to our retirement benefit counsellors on 0860 546 533.
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