By Tokiso TKay Nthebe
When we talk about retirement planning, most people think of saving and investing for their future. But true financial wellness isn’t just about building wealth — it’s also about protecting your loved ones when you’re no longer here.
Whether you’re a freelancer, startup founder, or 9-to-5 professional, one simple document could determine your family’s financial security: the beneficiary nomination form.
What Is a Beneficiary Nomination Form?
A beneficiary nomination form is a document that allows you to specify who should receive your retirement fund benefits if you pass away.
Here’s why it matters: according to Section 32 of the Lesotho Pension Fund Act (2019) and Section 37C of South Africa’s Pension Fund Act (1956), your retirement fund benefits don’t automatically form part of your estate. That means your will alone doesn’t determine who receives your pension money — your most recent beneficiary form does.
If you haven’t completed or updated your form, your fund’s trustees will decide based on their investigations. That process can be long, complicated, and emotionally taxing for your loved ones.
Why Completing This Form Matters
Most people spend their working years accumulating wealth, but forget the importance of directing where it goes. Here’s why a beneficiary nomination form is an essential step in your financial planning journey:
1. It Protects Your Loved Ones
Your nominated beneficiaries — your spouse, children, parents, or dependents — can access your retirement benefit without unnecessary delays or legal battles. It’s the difference between financial security and financial uncertainty for those left behind.
2. It Puts You in Control
A completed form ensures you decide who benefits from your hard-earned savings, not a legal process or trustee discretion. It’s a simple way to practice intentional estate planning and maintain control of your legacy.
3. It Prevents Family Conflicts
Without a valid nomination, trustees must investigate to identify dependents, which can trigger family disputes and long delays. A clear, updated form helps keep peace — and ensures your wishes are respected.
4. It’s Legally Binding
Once submitted, a properly completed form is binding. Trustees are legally obligated to honour it. It’s a small action with a powerful, lasting impact.
5. It Reflects Life Changes
Life happens — marriages, divorces, births, and deaths. Each change should be reflected in your nomination form. Review it annually, especially after major life events, to ensure it still reflects your intentions.
What Happens If You Don’t Complete One?
Let’s be honest — many professionals and entrepreneurs across Africa don’t fill out their forms, often assuming HR handles it or planning to “get to it later.”
Here’s what could go wrong:
- No Form on File: Trustees must investigate your dependents, delaying payouts for months or even years.
- Outdated Form: Your benefits could go to an ex-spouse or someone you no longer support.
- Unclear Dependents: If trustees can’t identify eligible beneficiaries, your money may be held in trust or become subject to legal disputes.
That’s not the legacy any of us want to leave.
Who Qualifies as a Beneficiary?
A beneficiary is anyone financially dependent on you, including:
- Your spouse or life partner
- Your children (biological, adopted, or stepchildren)
- Elderly parents
- Siblings or anyone you financially support
Take Responsibility — Protect Your Legacy
Financial planning isn’t only about saving; it’s about intentionality and protection. At TKO Financial Wellness, we encourage you to take small but meaningful actions like updating your beneficiary nomination form.
Start today:
- Contact your HR or pension fund administrator.
- Request and review your beneficiary nomination form.
- Update it every year — or after any major life event.
Retirement planning isn’t just about building wealth for your future—it’s also about protecting your loved ones when you’re no longer here.
As a retirement education enthusiast, one of the most overlooked yet essential tools I urge every member of a retirement fund to prioritise is the beneficiary nomination form. Whether you’re a millennial freelancer, a Gen-Z startup founder or a 9-to-5 professional this form could make all the difference in your family’s financial future.
Let’s talk about why.
What Exactly Is a Beneficiary Nomination Form?
A beneficiary nomination form is a simple but powerful document that lets you name the people (called beneficiaries) who should receive your retirement fund benefits if you pass away.
According to Section 32 of the Lesotho Pension Fund Act (PFA) of 2019 or Section 37C of the South African Pension Fund Act of 1956, these benefits do not form part of your estate. That means they won’t automatically go to your family via your will or estate distribution process. Instead, they’ll be distributed according to the most recent beneficiary form on file with your fund.
So yes, you really do need to complete (and update) this form.
Why Is This So Important?
Too often, we focus on accumulating wealth but forget the importance of directing where it goes when we’re no longer around. Not completing or updating your beneficiary form can create confusion, delays, and—worse—unintended hardship for the people you care about.
Here’s why completing a beneficiary nomination form is a critical step in your financial wellness and money management journey:
1. It Protects Your Loved Ones
Your nominated beneficiaries (spouse, children, parents, or other dependents) will receive your retirement benefit without lengthy legal battles. It’s the difference between financial security and financial chaos for those left behind.
2. It Keeps Control in Your Hands
A completed beneficiary form ensures you decide who benefits from your hard-earned retirement savings, not just a legal process or a trustee’s discretion. This is a key pillar of intentional retirement planning.
3. It Prevents Family Disputes
Without a valid or updated nomination, pension trustees must conduct investigations to determine your dependents. This process can be lengthy, emotionally draining, and prone to family conflict. Completing your form helps avoid that.
4. It’s Legally Binding
Once submitted, a properly completed form is binding. That means the board of trustees must respect your wishes and ensure your benefits are paid out accordingly.
5. It Reflects Life Changes
Life happens. Marriages, divorces, births, deaths, or changing family dynamics should be reflected in your nomination form. Review it at least once a year.
What Happens If I Don’t Have One?
Let’s be real—many Basotho (and fellow Africans across the continent) still don’t complete or regularly update their forms. Some assume it’s handled by HR, others simply forget.
Here’s what could happen if you don’t act:
- No Form on File: The trustees must investigate and verify your dependents before distributing benefits. This could delay payouts for months—or even years.
- Outdated Form: Benefits may be paid to people you no longer support (e.g., an ex-spouse).
- No Record, No Clarity: If the trustees can’t determine your dependents, benefits may go into a holding account or cause legal disputes.
That’s not the legacy most of us want to leave behind.
So, Who Is Considered a Beneficiary?
According to the PFA, a beneficiary is anyone financially dependent on you—this could be:
- Your spouse or life partner
- Your children (including adopted or stepchildren)
- Elderly parents
- Siblings or anyone financially supported by you
Your Next Step? Take Responsibility.
Financial planning isn’t only about saving—it’s about intentionality. At TKO Financial Wellness, we encourage you to own your money adventures by taking small but powerful steps like this.
- Speak to your HR department or pension administrator
- Ask to review or update your beneficiary nomination form
- Do this annually, especially after major life events
The Bigger Picture: Financial Wellness for Life and Beyond
Across Africa, more people are embracing financial literacy and retirement education — moving from reactive to proactive money management. Planning for life after your life isn’t morbid; it’s empowering.
So here’s your reminder:
Don’t let silence or procrastination cost your loved ones their peace of mind.
Change the script. Complete that form. Own your financial future.
Have questions about your retirement planning or estate planning journey?
Let’s talk. Visit www.tkofinancialwellness.com or follow My Money Adventures for more practical money tips, guides, and stories designed for Africa’s next generation of wealth builders.
About the Author
Tokiso “TKay” Nthebe is an author, podcast host, financial coach, and lead advisor at TKO Financial Wellness & Advisory. She’s passionate about helping professionals, freelancers, and business owners achieve financial freedom through education, financial planning, and digital innovation.
