Naming and Updating Your Beneficiaries

One of the simplest yet most important aspects of retirement and estate planning is naming and updating your beneficiaries. Beneficiary designations determine who receives the assets in your retirement accounts, life insurance policies, and other financial accounts upon your death. Keeping them current ensures your wishes are honored and can prevent complications for your loved ones.

At Sound Retirement Solutions, we help clients integrate beneficiary planning into a complete retirement strategy, including income planning, over 65 healthcare considerations, life insurance, and estate planning.

Why Beneficiaries Matter

Assets that have designated beneficiaries typically bypass the probate process, allowing your loved ones to receive funds quickly and efficiently. Failing to update beneficiaries, however, can create unintended consequences, such as:

• Assets going to a former spouse

• Children or dependents being overlooked

• Family disputes or legal challenges

Regularly reviewing and updating your beneficiary designations ensures that your retirement plan reflects your current wishes and family situation.

Accounts That Require Beneficiaries

Key accounts and policies often require beneficiary designations, including:

• Retirement accounts (IRAs, 401(k)s, pensions)

• Life insurance policies

• Annuities

• Health savings accounts or other specialized investment accounts

Each account may have its own rules and forms, so it’s important to review them individually and keep records updated.

Steps to Name and Update Beneficiaries

1. Identify All Accounts and Policies
Make a comprehensive list of all accounts where you can name beneficiaries.

2. Choose Primary and Contingent Beneficiaries

• Primary beneficiaries receive the assets first

• Contingent beneficiaries inherit if the primary beneficiary is no longer living

3. Review Regularly
Life changes such as marriage, divorce, the birth of a child, or the death of a beneficiary can require updates. Reviewing designations annually or during major life events keeps your plan accurate.

4. Coordinate With Estate Planning Documents
Beneficiary designations generally override instructions in a will or trust. Ensure your designations align with your overall estate plan to prevent conflicts.

5. Consult a Retirement Planner
A retirement planner can help coordinate your beneficiary designations with your broader retirement strategy, including income planning, life insurance, and over 65 healthcare planning. They ensure your assets are protected and your loved ones are provided for according to your wishes.

Moving Forward With Confidence

Naming and updating beneficiaries is a simple yet powerful step in protecting your family and preserving your legacy. By staying proactive, you can avoid confusion, legal disputes, and unintended outcomes, while ensuring your retirement plan continues to meet your goals.

If you are approaching retirement or already retired and want guidance on naming or updating your beneficiaries, we invite you to schedule a conversation with a retirement planner at Sound Retirement Solutions. Together, we can create a strategy that safeguards your assets, supports your income, and secures your family’s future.