One in three Australians haven’t told their super fund who should get their money when they die

New Super Consumers Australia research shows 6.5 million people are at risk of leaving their grieving families struggling to access money

Super Consumers’ research shows that more than one in three Australians with super (36%) say they haven’t told their super fund who should receive their money when they die, known as ‘death benefit nominations’. Just one in four (24%) say they’ve made a binding death benefit nomination.

That means over 6.5 million Australians risk long delays for their loved ones, with the possibility the money may not be distributed according to their wishes.

Xavier O’Halloran, CEO of Super Consumers Australia, said:

“The fact that so many Australian families are facing this uncertainty is a red flag. This is a system that’s too hard to understand and navigate.”

“Without a valid binding nomination, funds have to decide who your money goes to. That leaves families in limbo, sometimes waiting months or years to access money they are entitled to. And it’s not good enough.”

Super Consumers warns that many Australians believe they’ve secured their wishes with a binding nomination, when in fact they may not have, or it may have expired.

The current system is difficult to navigate and governed by inconsistent rules across funds. This means avoidable delays for grieving families who urgently need funds.

“The Federal Government must launch an independent review of how death benefits work in super,” Mr O’Halloran said. “Australians deserve a system that’s simple, consistent and actually delivers in their time of need.”

Super Consumers Australia is also calling on super funds to:

• Prompt members more frequently to make (or update) a binding nomination,
   
• Provide better, clearer guidance on how to make their nominations valid,
   
• Offer online nomination options that don’t expire (non-lapsing) where possible.

“This is one of the basics that super funds should be getting right,” said Mr O’Halloran. “People work their whole lives to build up their super and they should get to decide where it goes when they pass away.”

Super Consumers is encouraging Australians to contact their fund and make a binding nomination. This will speed up the process for their loved ones when they pass away.

Read the full research here