Have You Updated Your Beneficiaries Lately? Here’s Why It Matters

When it comes to retirement accounts, wills, and life insurance policies, there’s a critical detail that often gets overlooked: your beneficiaries.

Even the best financial plan can fall apart if outdated beneficiary information sends your assets to the wrong people — or ties up your legacy in legal battles.

Here's why keeping your beneficiary designations updated is one of the simplest, smartest moves you can make.

Why Beneficiaries Matter More Than You Think

Your beneficiary forms control who receives your assets — even more than your will.
For retirement accounts like IRAs and 401(k)s, the listed beneficiary overrides whatever your will says.

That means if your life changes — marriage, divorce, new children, family changes — and you don’t update your forms, your money could end up somewhere you never intended.

Common Mistakes That Cost Families Big

• Forgetting to update after a major life event (marriage, divorce, death of a spouse)

• Listing the wrong person or someone who is now deceased

• Leaving a minor child directly as a beneficiary without setting up a trust

• Not naming contingent (backup) beneficiaries in case your primary passes away first

Each of these mistakes can delay distributions, create legal fights, and cost your loved ones time, money, and stress.

How Often Should You Review Beneficiaries?

A good rule of thumb:
Review your beneficiaries once a year — or anytime a major life event happens.

Also check:

• 401(k)s and IRAs

• Life insurance policies

• Annuities

• Brokerage accounts

• Bank accounts with payable-on-death (POD) designations

It usually takes less than 10 minutes to update, but could save your family months or years of heartache.

Bottom Line

Your retirement accounts and insurance policies aren’t set-it-and-forget-it.
Keeping your beneficiaries up to date ensures your money goes where you intend — with minimal delays and legal hassles.

Take a few minutes today to review your beneficiary forms.
It’s one of the easiest, most impactful moves you can make for your family’s future.

Need help reviewing your full retirement plan?
Our free trainings and trusted advisor network are here to guide you.