Let’s be honest—updating your retirement account beneficiaries probably isn’t at the top of your to-do list. It’s one of those things that feels “set it and forget it.” But life happens, and things change. Keeping those records up to date is one of the easiest and most important ways to make sure your money goes where you want it to.
When Should You Update Your Beneficiaries?
Life has a funny way of throwing curveballs, and those are the moments when you should stop and think about updating your beneficiaries. Here are a few big ones:
Marriage: Got married? Congrats! Time to add your spouse to your accounts if that’s what you want.
Divorce: You don’t want your ex accidentally inheriting your TSP or life insurance, right?
Birth or Adoption of a Child: A new addition to the family is a great reason to revisit your beneficiaries.
Death of a Beneficiary: If someone you’ve named passes away, you’ll need to remove them and maybe add someone else.
Major Life Events: Retiring, moving, or just realizing it’s been 10 years since you last checked? Perfect time to update.
Why It’s So Important
Here’s the thing: your beneficiary designation trumps your will. Even if your will says one thing, the money in your TSP, life insurance, or other accounts will go to whoever is listed on your beneficiary form. It’s legally binding.
For example, imagine you named an old friend as a beneficiary 20 years ago but never updated it. Fast forward, and you’re married with kids. If you don’t update your forms, that old friend might end up with your retirement savings instead of your family. Awkward.
What Accounts Should You Check?
Federal employees have a few key places where beneficiary designations are crucial:
Thrift Savings Plan (TSP)
Federal Employees Group Life Insurance (FEGLI)
FERS or CSRS Retirement Benefits
Unpaid Compensation (final paycheck, unused leave, etc.)
Each of these has its own form for updating beneficiaries, so make sure you’re covering all your bases.
How to Update Your Beneficiaries
Updating your beneficiaries is easier than you think. Here’s how to do it:
Log In to Your TSP Account:
Go online to tsp.gov and log in.
Navigate to the section for updating beneficiaries and follow the instructions. You’ll need the names, Social Security numbers, and contact info for the people you want to list.
Check Your FEGLI Designation:
Download the and fill it out.
Submit it to your HR office or retirement services.
Update Retirement Benefits:
For FERS or CSRS, use the .
Send it to your agency’s HR office or OPM if you’re retired.
Double-Check Everything:
Once you’ve made updates, keep a copy for yourself. It’s also a good idea to check back every couple of years to make sure everything still looks right.
Don’t Wait
Updating your beneficiaries doesn’t take long, but the impact lasts forever. It’s a simple way to avoid confusion, legal battles, and hurt feelings down the road. Think of it as one small thing you can do today to make life easier for your loved ones in the future.
Take a few minutes to review your accounts. Your future self (and your family) will thank you.
