Superannuation is one of your biggest investments and it can have substantial impact on your financial future. It's important to remember that it can also have a major effect on your family's future in the event of your death.
Don't let all those years of hard work and saving into your super go to waste. Nominating a beneficiary can help you ensure your death benefit (which includes your super account balance plus any insurance benefits payable) goes to your loved ones, helping you contribute to their future even after you are no longer around.
The person you nominate must be either your Legal Personal Representative (the person you nominate to execute your will), or a dependant (for superannuation purposes) at the time of your death.
Dependants for superannuation purposes are generally classed as your spouse (married or de-facto), your children (including step-children or adopted children), individuals who are financially dependent on you or with whom you have an interdependency relationship at the time of your death.
It's also important to understand the difference between a binding and non-binding nomination. A valid binding nomination means your benefit will generally be paid faster and directly in accordance with your wishes. A binding nomination does expire after three years so you do have to keep it updated.
A non-binding nomination indicates to the trustee of your super fund your wish but the Trustee ultimately decides how to distribute your super amongst your dependants — even if it may not be what you had in mind.
To find out more, or to make sure your nominations are up-to-date and reflect your wishes, please call us on 1300 776 417.