Your super savings may last 20 years or more when you retire - some of the savings may even outlive you, so it’s important to let us know where you want your money to go.
How does nominating beneficiaries work?
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Show transcript
Hi, I’m Rebecca Townsend, from AustralianSuper. Do you know what would happen to your super if it outlasts you? This video is about the importance of nominating beneficiaries for your super, the different nomination types, and how to make them.
While it can be uncomfortable to think about these decisions, it’s comforting knowing your super can go where you want, when you pass away. By nominating valid beneficiaries you’ll know you're helping those who matter to you. It’s important to be aware that your super sits separate to your estate, so it’s not covered in your will unless you nominate your estate as your beneficiary.
The first step is understanding who valid beneficiaries are. For super purposes, these are:- Your spouse or partner,
- Your children,
- Interdependents,
- Other financial dependants, or
- Your estate or legal personal representative.
There are two types of beneficiary nominations. Binding and non-binding.
- A binding nomination is a formal written direction to AustralianSuper explaining where you want your balance paid. It's legally binding and valid for three years. After that AustralianSuper will write to you and ask you to complete the nomination again.
- A non-binding nomination is quick and simple. However, because it isn’t legally binding, it’s a suggestion for where you would like your funds paid. AustralianSuper will take all valid beneficiaries into consideration.
You might want to see if you’ve nominated a beneficiary already, or wish to change an existing nomination. Doing either is simple. Start by logging into your online account with AustralianSuper, or check your most recent statement. To make a binding nomination, complete the Binding death benefit nomination form, available online at australiansuper.com/beneficiary
Remember AustralianSuper will contact you every three years reminding you to renew your nomination.
For non-binding nominations, complete the Change My Details form at australiansuper.com/factsheets, through the member portal, or by calling 1300 300 273.
Nominating a beneficiary means you're taking steps now, to help your loved ones in the future.
Dealing with beneficiaries and estates can sometimes be confronting and confusing. So, we recommend that if you're not sure what to do regarding your personal circumstances, consider getting legal advice from an estate planning specialist.
For more information, go to australiansuper.com/beneficiary
End transcript
Your beneficiary options
There are a few options when deciding what happens to your money in the event of your death.
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Binding nomination
You provide formal written direction to AustralianSuper to tell us who you want your account balance paid to, so that it’s legally binding. A binding nomination comes into effect from the date we accept it, and expires three years from the date you sign the form.
You can set up or change your binding nomination by completing a valid -
Non-binding nomination
You nominate who you’d prefer your account to be paid. However, your nomination is not legally binding and although we’ll consider who you choose, ultimately we are legally responsible and will need to consider relevant laws when making a decision.
You can make a non-binding nomination, by:- logging into your account on our website – go to Account and select Who gets my super;
- logging into your account via the mobile app – select Beneficiaries on the home screen to view or update non-binding beneficiaries;
- completing the Change my details form (for super accounts) / Change my details form (for Choice Income or TTR Income accounts); or
- calling us on 1300 300 273 8am to 8pm AEST/AEDT weekdays.
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Reversionary nomination for retirement accounts
If you nominate a reversionary beneficiary, this person will receive regular income payments from your account until the balance reaches $0.
You can nominate any one of the people listed under the Who you can nominate section below, except your legal personal representative. If you nominate a child over 18 years old, they must be:
- permanently disabled, or
- younger than 25 and financially dependent (as defined by Superannuation law) on you immediately before your death
You can set up or change your reversionary nomination by completing a valid Reversionary benefit nomination form
Who you can nominate
Your beneficiaries can be:
- your spouse or partner
- your children (conditions apply for reversionary beneficiary nominations)
- interdependants (someone who lives with you and shares a close personal relationship where one or both of you provide financial and domestic support, and personal care of the other)
- other financial dependants1 (such as someone who relies on you financially)
- your estate or legal personal representative (not available for reversionary nominations).
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Special conditions for children receiving payments
Children aged between 18 and 25 who are financially dependent can choose to receive your account as regular income payments.
- They’ll receive these payments until they’re 25 (or until your account runs out), and when they turn 25, what’s left will be paid to them as a lump sum
- If your child is permanently disabled, they may continue to receive regular payments until the money runs out, regardless of their age
Children under 18 may be paid into a trust account and a trustee will have responsibility for the money until they turn 18.
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More about interdependants
An interdependent relationship exists if:
- two people have a close personal relationship which involves a demonstrated and ongoing commitment to a shared life and each other’s emotional support and wellbeing; and
- they live together, or are temporarily living apart; and
- one or each of them provides the other with financial support; and
- one or each of them provides the other with domestic support and personal care of a level normally provided in a close personal relationship, rather than by a mere friend or flatmate.
OR
- if they don’t live together or provide each other with financial support, domestic support and personal care, it’s because one or both of them suffer from a disability.
Two people don’t have an interdependent relationship if one of them provides domestic support and personal care to the other and is paid for this or works on behalf of another person organisation such as a government agency, a body corporate or a benevolent or charitable organisation.
Whether your nominated beneficiaries qualify as your interdependants will be assessed when a claim is made.
