No one likes to think about what will happen when they die. But your super is one of your most valuable things, so it’s important to decide who will get it after you die. To make sure your super money goes to the people you choose, you need to keep it up to date by naming your beneficiaries.
What’s a beneficiary?
A beneficiary is the person who gets your super when you die. This includes the money in your account plus any insurance (if you have insurance through Vision Super). The law says they can be:
- Your spouse – your husband, wife, or partner who you live with
- Your child (including adopted and step-children)
- A person you have an interdependent relationship with when you die. An interdependent relationship means a close personal relationship between two people who live together and support each other financially, domestically, and personally.
Usually, your parents, siblings, nieces, nephews, friends, neighbours, or housemates do not count as beneficiaries unless you had an interdependent relationship with them before you died. Super is meant to support your partner or children, so they are given preference.
To make sure your super goes to your loved ones when you die, you have a few options for naming beneficiaries. It might take some time to decide which is best for you, but it’s important to understand your choices.
If you want to choose what happens to your super account when you die, you have a few options to choose from. You can:
- Make a ‘preferred beneficiary’ nomination, also called a non-binding nomination
- Make a ‘binding’ nomination
Preferred beneficiary (non-binding) nominations
A preferred beneficiary nomination, also called a non-binding nomination, is an informal way of telling Vision Super who you want your super to go to when you die.
Vision Super will consider your wishes, family, personal relationships, Will, and other details to understand your situation. They will decide if you have any financial dependents, non-financial dependents, or interdependent relationships.
Vision Super will think about your wishes, but the final decision might be different from what you wanted. It is easier to make a preferred beneficiary nomination than a binding nomination since you can make one through your online account or by filling out and sending back a form, but a preferred nomination isn’t as strong as a binding nomination. You should think carefully about which option is right for you.
Binding nominations
A binding nomination is a formal instruction about how you want Vision Super to pay your super when you die. You can only make a binding nomination to your spouse, child, interdependent, or your estate – or any combination of these.
For example, you might want your super to go to your adult kids, not your partner. Without a binding nomination, Vision Super may pay your whole death benefit to your partner because they assume your partner is your financial dependent. However, a binding nomination can ensure your adult children, who aren’t financially dependent on you, get some or all of your super. Vision Super must follow your instructions in a binding nomination.
A binding nomination must be properly completed to be valid. It must:
- Be completed on the binding nomination form and received by the Trustee
- Only name a dependent, interdependent, or legal personal representative
- Add up to 100% in total distribution
- Be properly witnessed by two adults who are not named as beneficiaries
Binding nominations expire three years from the date they are signed. You can renew them or make a new one anytime by filling out a new form. Vision Super will remind you when your binding nomination is about to expire. If you don’t renew it, it turns into a preferred nomination.
What happens if I don’t have a nomination?
Without a nomination, Vision Super will decide who gets your super and how much each of them will get.
Financial planning
Vision Super Financial Planners are super specialists who help members plan for retirement. If you get advice from a Vision Super Financial Planner, there may be a fee, but it will be discussed with you before any advice is given. Call our Member Services team on 1300 300 820 Monday to Friday 8:30 am to 5 pm to set up a time.
