Your will does not decide who inherits your retirement fund. Section 37C of the Pension Funds Act does. That's surprising, and occasionally upsetting, and worth understanding before you need it.
What the law says.
When you die, the trustees of your retirement fund (pension, provident, or RA) are legally required to identify your dependants and distribute the money between them in a way the trustees consider "fair and equitable". They must consider:
- Your legal dependants (spouse, children)
- Your financial dependants (anyone you were actually supporting)
- Anyone you nominated as a beneficiary
They will investigate. They will speak to family. They will sometimes find dependants you didn't formally name. Nominations matter, but they are input, not instruction.
What this means in practice.
Keep your nomination forms up to date. They guide the trustees, even if they don't bind them. If your life has changed (new spouse, children, divorce), the forms need updating now, not later.
Understand that the process takes time. Trustees typically take several months to make a determination, longer in complicated families. Your family will not receive the funds the week after you die, even if the nominations are clear.
And note: Section 37C only applies to retirement funds. Life insurance policies, TFSAs, unit trusts, and other assets follow their own rules (nominated beneficiary in the case of policies; your will, in most other cases).