Hopefully, your members will enjoy a long and healthy retirement to enable them to make the most of their pension savings. However, it’s important they put some simple arrangements in place to make sure the ones they care about are provided for after they die.
Having a Will is not enough
When it comes to passing money on, for many people the first thing that springs to mind is making a Will. And, this undoubtedly is a very important step to make, however a Will doesn’t usually cover members’ pension savings. According to information provided by the ONS, an estimated 42% of the total wealth of Great Britain is tied up in pension plans*, so it’s important for members to tell the Trustee where they money should go.
Peace of mind for your members and their loved ones
Members should complete a nomination form as that way the Trustee will know who they wish to receive their money. They can nominate individuals, such as a family member or a friend, a charity, club or organisation. Members can nominate more than one person by listing what percentage of their lump sum should go to each one of them. If they die before claiming their pension, a lump sum worth up to four times their salary could be paid.
Member nominations are confidential. Beneficiaries will not be told that they have been added or removed as nominated beneficiary.
How to make nominations
Members can make a nomination in five simple steps. They need to:
- Log in to their myFund/myRPS account
- Go to ‘My Nominations’ (under the ‘My Pension’ section)
- Add the details of each nominee
- Select what percentage they’d like each nominee to receive, making sure it adds up to 100%
- Press submit
If they haven’t yet registered for their account, it only takes a few minutes – all they need is their national insurance number, pension reference number and their personal email address.
More information is available
Members can find more information on nominations and how to nominate in their myRPS account.
They can also watch a short video on nominations in the video library.
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*Figure taken from the Office for National Statistics, Pension wealth in Great Britain, published December 2019.