Retirement education - TKO Financial Wellness Academy

By Tokiso TKay Nthebe 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 in 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 Let’s Make Retirement Planning Personal Across Africa, we’re slowly shifting the narrative around financial wellness and retirement education, from reactive to proactive. Let this be your reminder that planning for after your life is just as important as planning for your life. Don’t let your silence or procrastination cost your loved ones their peace of mind. Let’s change the script. Complete that form. Own your financial future. Have questions about your retirement planning journey? Want help reviewing your forms or understanding your pension fund rules? Let’s talk. Visit www.mymoneyadventures.com or connect with us on social media for more tips, guides, and money adventures across the continent.

Tag: Retirement education

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