Who Gets Your Super When You’re Gone?

It Might Not Be Who You Think

I read a recent ABC News article that stopped me in my tracks. It reported that more than 15.5 million Australians may not have a binding death benefit nomination attached to their superannuation. That means when they pass away, they may not ultimately have the final say over who receives one of their largest assets.

For many Australians, this comes as a surprise.

After all, we spend years creating wills, discussing estate plans with our families, and making sure our affairs are in order. Yet superannuation sits outside your will and is governed by a different set of rules. Without the correct nomination in place, the trustee of the super fund may be left to decide who receives the benefit.

And that is where family stories can become family disputes.

“But that’s what Dad wanted…”

The ABC article shared the story of a woman whose uncle had nominated his two nieces to receive his superannuation. After he passed away, they believed they were simply carrying out his wishes.

The shock came when they discovered the nomination was not legally binding. The fund ultimately paid the benefit to his estranged son instead. Brooke summed up the frustration many families feel:

“It’s not about the money, it’s about the request of someone who is deceased.”

Over the years at JBS, we’ve seen similar situations.

One client believed their adult children would automatically inherit their super because they were named in the will. Another assumed a nomination completed years earlier was still valid, only to discover it had lapsed. In both cases, a simple review avoided what could have become a lengthy and emotional dispute.

The family barbecue conversation

I often think of another client who put off discussing estate planning because it felt uncomfortable.

“We’ll sort it out one day,” he told me.

That “one day” became fifteen years.

When we finally managed to review his arrangements, his super nomination still named his former spouse. His life had completely changed. He had remarried, become a grandfather and built a very different vision for his legacy.

He laughed when we found it.

“I’m so glad we checked this. I had no idea that form still existed.”

The reality is that many Australians are time-poor and assume once paperwork is completed, it stays relevant forever. Unfortunately, life changes much faster than forms do.

Why this matters more than ever

The figures are significant.

Research cited by the ABC, based on Super Consumers Australia data, suggests around 87% of people surveyed did not have a binding death benefit nomination in place. The estimate translates to approximately 15.7 million Australians potentially leaving the decision to their fund rather than directing it themselves.

At the same time, Australia’s superannuation system now holds around $4.4 trillion in retirement savings, making it one of the nation’s largest pools of household wealth.

When money of that magnitude is involved, consumer sentiment naturally shifts toward certainty, control and transparency.

People want confidence that their wishes will be respected.

They want to know the people they care about will be looked after.

And they want to avoid creating stress for loved ones during an already difficult time.

A conversation worth having

One of the most memorable comments I’ve heard came from a client’s daughter after we reviewed her parents’ estate planning.

“This isn’t really a financial conversation. It’s a family conversation.”

She was absolutely right.

Superannuation nominations are not simply legal documents. They are expressions of intent. They communicate what matters most to us and who we want to support when we’re no longer here.

That is why we regularly encourage clients to review their estate planning arrangements, beneficiary nominations, powers of attorney and wills together, rather than treating them as separate documents.

The JBS view

At JBS Financial Strategists, we see this as much bigger than paperwork.

Good estate planning is about ensuring your wealth goes where you intend, reducing the likelihood of disputes and giving your family clarity when they need it most.

The recent ABC article is a timely reminder that assumptions can be costly.

You may have a will.

You may have named beneficiaries years ago.

But do your current arrangements reflect your wishes today?

Or has your Death Benefit Nomination lapsed?

What’s next

The recent ABC article is a timely reminder that assumptions can be costly. You may have a will. You may have completed beneficiary paperwork years ago. But does it still reflect your wishes today? And, more importantly, will your superannuation be distributed as you intend?

At JBS Financial Strategists, we’ve helped many families navigate these conversations before they become problems. Our experience has shown that a simple review of your superannuation nominations, estate planning documents and family circumstances can provide tremendous peace of mind. It is not just about protecting your wealth. It is about protecting the people you care about and ensuring your voice is heard when it matters most.

If reading this article has prompted you to wonder, “When was the last time I checked my nominations?” perhaps that is a sign it’s time for a review. Reach out to the JBS team and let’s make sure your plans, your paperwork and your wishes are all working together. A conversation today could save your loved ones confusion, delays and heartache in the future.