Ensure your super beneficiaries are up to date

What happens to your super when you die isn't something most people consider.

Despite worrying about how long super will last, some people will actually die before their superannuation is used for its intended purposes – an income in retirement. While this isn't something most people like to consider, it’s important to ensure that those who need it most are the ones who will benefit from your superannuation once you die.

When you first opened your superannuation account, you would most likely have been asked to nominate a super beneficiary, however, this isn't the case in all instances. If you did make a nomination, you would have done so through one of the three methods below:

Revisionary nomination – whereby you nominate someone to receive the balance of your account as a regular income.

Binding nomination – whereby you formally write to your superannuation fund to advise who should receive your account balance. Your nomination, once validated, is binding.

Preferred non-binding nomination – whereby you advise your super fund who you would like to receive your account balance in the event of your death. While your wishes are given due consideration, it is not a legally-binding nomination.

Of course, it’s worth noting that the person you nominated when you first opened your superannuation account may no longer be the person you would like to receive your account balance if you die. Therefore, it is important to consider if your nomination needs to be reviewed. You can nominate:

  • a spouse – whether de facto or same-sex
  • children of any age – adopted and stepchildren can be included
  • interdependants – a person with whom you have a close personal relationship, share a residence and where either of you provides financial and domestic support, and personal care for the other
  • a financial dependant – someone who relies upon you financially
  • a personal legal representative –  stated in your will as being the executor of your estate




If you’re planning on leaving the balance of your superannuation account to your children, who are aged between 18 and 25, and are financially dependent on you, then they can receive your balance as regular amounts. This can continue until they reach 25 or your account balance runs out.

Once they turn 25, the remainder of your account balance will be paid as a lump sum.

Regardless of their age, a permanently disabled child can continue to receive regular payments until the money runs out.

To find out more about how you can ensure your super benefits those you wish, visit Australiansuper.com

This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.  The views expressed are those of YourLifeChoices and not AustralianSuper. For more information about AustralianSuper, please visit australiansuper.com

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    COMMENTS

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    12th Apr 2017
    3:05pm
    When its paid lump sum to the kids, is there a tax implication ?
    Sundays
    12th Apr 2017
    4:01pm
    This sponsored content gives the impression that these nominations apply to all schemes when they do not. Government schemes for example are very specific as to who can receive your benefit when you die and not as detailed above. You need to check the scheme rules of your super fund
    KSS
    12th Apr 2017
    9:26pm
    And in some funds (if not all) if your nominated beneficiary is not a dependent or a spouse they may not receive it from the super company. The super will be added to your estate and distributed accordingly as per the will (if there is one) or as the outcome of family feuding dictates!
    Circum
    14th Apr 2017
    5:12pm
    I was of the impression that a binding nomination with Australian Super was good for 3 years only and that you had to pay $20 to renew it every 3 years.Hope I am wrong
    Circum
    17th Apr 2017
    9:06pm
    Hmmm a reply from the sponsor would be appropriate and appreciated


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