It’s probably not something you really want to think about … but it is important for you to consider who would receive your superannuation benefit if you die.
Many people are unaware that their entire superannuation balance, and often their insurance benefits, can be divided among the dependants they leave behind.
You should keep your beneficiaries up to date and in line with your personal circumstances. If you don’t, your death benefit might not go to the people you want it to.
What is a beneficiary?
A beneficiary is the person who you wish to receive your super benefit in the event of your death.
You can nominate one or more of your dependants and/or legal representatives.
Who is a dependant?
- Your spouse – including de facto and same-sex couples
- Children – natural, step or adopted
- Financial dependants
- Any person who was in an interdependency relationship with you at the date of your death
Different ways of nominating a beneficiary
|Option||What happens to your death benefit?|
|Binding nomination||If you provide a binding nomination that satisfies all legal requirements and which has not expired (binding nominations typically expire after three years unless you renew them) the trustee of the super fund must pay your benefit to the beneficiaries you have nominated and in the proportions specified.|
|Non-binding nomination||The trustee of the super fund will decide which of your beneficiaries will receive your death benefit and in what proportion. Your nominated beneficiaries will be taken into account.|
How do I know who are my beneficiaries?
On your annual super statement your beneficiaries will be listed with the percentage that you wish to leave them. If you are unable to find this information, contact your super fund and they will be able to assist. This will also show the date that the nomination lapses so take note.
How do I nominate a beneficiary?
You can nominate, cancel or change your nominated beneficiaries at any time by completing the death benefit nomination form for your super product.
For further information, contact your super fund or a financial adviser.