15.7 million Australians may not control where their super goes after death
Super Consumers Australia research has found that many Australians either don’t have a binding nomination or may have been inadequately informed about making one. Why
Super Consumers Australia research has found that many Australians either don’t have a binding nomination or may have been inadequately informed about making one. Why your super isn’t controlled by your will 15.7 million Australians could be nomination-free Not all nominations are created equal Who can get Superannuation? Regulators tell funds to improve process Government to think about compulsory time frames Millions of Australians may believe their superannuation will automatically go to the people they name in their will when they die. But this is not necessarily so. A recent news report by ABC Information & Services News suggests that around 15.7 million Australians may not have a legally binding death-benefit nomination, which would give super funds a fair amount of discretion over who gets the money. The issue is drawing attention as regulators and consumer advocates call for clearer rules and faster processing of death-benefit claims.If we go by the report, superannuation is not automatically included in a person’s estate as a general rule. Instead the money is put in a trust and managed by the super fund’s trustee. The trustee determines who is entitled to receive the accumulated superannuation and any insurance benefits payable on the death of a member. This means a member’s will may not be enough to ensure their super goes to their preferred beneficiaries.
Binding death benefit nominations can add certainty, by legally binding the trustee to pay the benefit to eligible beneficiaries or the member’s estate.According to a Super Consumers Australia research, experts have found many Australians either don’t have a binding nomination or may have been inadequately informed about making one.In a 2025 survey of 5,000 people by the organization, 67 per cent said they had not been contacted by their super fund in the past year to make a binding death-benefit nomination. Only 10 per cent said they had been contacted and 13 per cent said they already had a binding nomination. Based on these findings and Australian Taxation Office data showing approximately 18 million people have a superannuation account, Super Consumers estimated that about 15.7 million people may not have a binding nomination.It is also mentioned that super funds need to do more to explain the significance of these nominations and to make the process easier for members, the organization said.A family dispute brings the issue to light. ABC eported the story of Brooke Allan, whose uncle had added her and her cousin to a death benefit nomination form with Cbus. After his death in 2024, the two nieces tried to claim the superannuation, thinking the nomination showed his wishes. Later, however, the fund discovered that the nomination was not legally binding.
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