I recently received correspondence from my superannuation fund which I thought I would share as a timely reminder.
The correspondence I received went as follows:
Your super savings may last 20 years or more when your retire – some of the savings may even outlive you, so it’s important to let your super fund know where you want your money to go.
There are a few options when deciding what happens to your money in the event of your death.
A Binding Nomination
You provide formal written direction to your super fund to tell them who you want your account balance paid to, so that it’s legally binding. A binding nomination comes into effect from the date they accept it, and expires three years from the date you sign the form.
A Non-Binding Nomination
You nominate who you’d prefer your account to be paid to. However, your nomination is not legally binding and although your fund will consider who you choose, ultimately, they are legally responsible and will need to consider relevant laws when making a decision.
A Reversionary Nomination for Retirement Accounts
If you nominate a reversionary beneficiary, this person will receive regular income payments from your account until the balance reaches $0.
There are a number of conditions as to who this person can be. Please refer to your superannuation fund for details.