Nominating beneficiaries
Nominating a beneficiary can be a simple way to make sure your employees’ wishes are considered should the unexpected happen.
Taking this step means that, if they pass away without using their pension savings, their provider has clearer guidance on their preferences, helping to reduce stress and complexity for their loved ones at a difficult time.
Key information
- On this page you’ll find out about beneficiary nomination, what it is and why employees should nominate
- It describes the differences between nomination by discretion and by direction
- You’ll find more information about how your employees can nominate beneficiaries through Royal London.
What is beneficiary nomination?
When it comes to pension planning nominating beneficiaries is an important step. By nominating beneficiaries, your employees ensure their wishes are clear to their provider and they will normally seek to honour those wishes.
This process gives them the flexibility to indicate who they wish to benefit from their unused pension savings, whether its family members, friends, or even charities.
To nominate beneficiaries, employees will:
- Complete a nomination in writing or complete a form, usually available online
- Choose their preferred beneficiaries
- If they're nominating more than one beneficiary, specify the percentage of their savings each one should receive.
Importantly, nominations can be updated at any time. This means employees can reflect changes in their personal circumstances, such as marriage, divorce, or the birth of children.
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Nominations by discretion
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Nominations by direction
Nominating beneficiaries with Royal London
With the Royal London Group Personal Pension and Group Stakeholder Pension schemes your employees make nominations by discretion to record their wishes. Your employees can:
- Download the Royal London mobile app
- Use our secure online form
- Complete a Nomination of beneficiary form.
Please note if your employee wishes to nominate at direction, they should discuss these options with a financial adviser and make a request to us in writing.
Why should employers get involved?
If your employee benefits include life insurance benefits for employees (sometimes called "death in service benefits"), you might already be encouraging your employees to nominate beneficiaries. This also applies to pension savings. By actively promoting beneficiary nominations, you can help your employees feel more secure about their future while ensuring the smooth running of your pension scheme:
- Your employees can rest easy knowing they’ve documented their preferences, and their pension savings will go to the people or causes they care about
- Their benefits are paid out promptly, helping families avoid delays and stress
- Nominations can help avoid legal disputes and could help lower inheritance tax, as Royal London typically pays out under discretionary rules.
How you can encourage beneficiary nominations
We support you with resources to help raise awareness and encourage your employees to nominate beneficiaries:
- Ready-to-use email templates for easy communication with your employees
- Downloadable posters for your workplace
- Direct links to Royal London’s online nomination form.
You can further boost engagement by:
- Including information on beneficiary nominations in onboarding packs for all new employees
- Sending regular reminders, such as annual emails or employee notices, encouraging your employees to check and update their nominations.