One of the most neglected aspects of retirement planning is making sure you have designated one or more beneficiaries for your account. A beneficiary is the person who would receive the money in your retirement account in the event of your death. It is always a good idea to have this information current so your benefits are distributed according to your wishes. It is a good idea to review/update this information periodically and especially following life changes such as marriage, divorce, or death of a loved one. 

In addition to peace of mind, many people choose to select beneficiaries because they want to specify one or more individuals or organizations. If you are married and select someone other than your spouse, he or she will have to acknowledge that they are waiving their benefit by signing the beneficiary form and having it notarized. For more information on how to designate a beneficiary, you should refer to your program documents.

Question: I already have a will—won’t that cover my retirement assets?
Answer: Many people mistakenly assume that they will be provided for when a spouse/parent dies or mistakenly assume that their funds will take care of certain loved ones because that is what was indicated in the will. A little known but important fact is a will does not cover company-sponsored retirement programs. No matter what a person’s will states (even if it does talk about your retirement accounts), the money from these accounts will be distributed according to the beneficiary information on file.

Question: If I don’t name a beneficiary, what will happen in the event of my death?
Answer: Without a valid beneficiary on file, your retirement account will be distributed according to your program’s hierarchy for the payment of death benefits. This information can be found in your program’s documents. Remember, the hierarchy could be different for each of your retirement programs, so it is important to check the documents for each of your accounts.

Question: If I fill out one beneficiary designation form, will it cover all of my retirement plans with Prudential?
Answer: No, you must make and file a valid beneficiary election for each retirement program you have specifying your wishes even if they are identical for all of your accounts