At Insight Wealth Planning, we know your super is one of the biggest assets you’ll accumulate in your lifetime. After years of hard work and smart saving, it’s only natural you want your savings to benefit your loved ones when the time comes. But many Australians are unaware your super doesn’t automatically form part of your Will—and without proper planning it may not go where you want. Planning your superannuation carefully is essential to secure your loved ones’ financial future.

Let’s look at what you can do to make sure your super goes where you want it to.

Why Your Super Fund Isn’t Automatically Part of Your Will

Unlike other assets, your super is held in a trust by your super fund and governed by different rules. The superannuation fund is the legal entity that holds your super, with the trustee responsible for managing it according to superannuation laws. Unless you take action, you don’t control who gets it when you pass away—the fund trustee does.

Many people assume their Will covers all their assets, including super. But unless you’ve nominated your legal personal representative and have an up-to-date Will, your super fund trustee will decide how your super is distributed and to whom.

Managing Your Super Accounts: Consolidation and Oversight

Managing your super accounts effectively is one of the best ways to give yourself the best chance of a comfortable retirement. Many Australians have multiple super accounts over their working life, especially if they’ve changed jobs or worked with different employers. However, having more than one super account can mean you’re paying multiple admin fees and other costs, which can eat into your super balance over time.

Consolidating your super accounts into a single fund can help reduce admin fees and make it much easier to track your super balance and investment returns. With only one account, you’ll have a clearer picture of your retirement savings and can manage your investment options more efficiently.

Before you consolidate, review the investment options and past performance of each super fund. While past performance is only one factor to consider, it can give you an idea of how your money has been managed. Also, take into account your personal circumstances—such as your financial situation, retirement goals and any insurance cover attached to your current super accounts. Seeking financial advice can help you make the best decision for your unique needs. Generally it’s recommended to have only one super account to avoid paying unnecessary admin fees and to simplify your super management. However before you request a rollover or transfer your super to another fund, check if there are any costs, penalties or eligibility criteria that apply. Some funds may charge exit fees or you may lose valuable insurance benefits so it’s important to weigh up all the factors.

If you’ve changed jobs recently or your financial situation has changed it’s a good idea to review your super accounts to make sure you’re on track to meet your retirement goals. Regular oversight of your super can help you stay in control and make sure your money is working as hard as you are.

Nominate a Beneficiary—And Make It Count

The simplest way to take control is to formally nominate a beneficiary. This tells your super fund who you want your money to go to and how it should be divided. As a member of your super fund you have the right to make these nominations and ensure your wishes are followed.

There are two options:

• Nominate a Dependant: This includes your spouse, children or someone financially dependent on you. These beneficiaries can receive superannuation directly.
• Nominate Your Legal Personal Representative: This sends your super to your estate where it will be distributed according to your Will.

If you want to leave super to someone who isn’t a dependant (e.g. a friend or charity) the only way to do that is through your Will—so you must nominate your legal personal representative.

Without a nomination—or an invalid one—the decision falls back to the trustee which can delay the process and cause stress for your family during an already tough time.

Binding vs Non-Binding Nominations: What’s the Difference?

If your fund allows it you may be able to make a binding death benefit nomination. This requires the trustee to follow your instructions exactly giving you the most certainty about where your super will go. On the other hand a non-binding nomination is more like a strong suggestion. The trustee will consider it but isn’t required to follow it.

Remember:

• Binding nominations expire every three years unless specified otherwise.
• You should review your nomination regularly especially after major life changes like divorce, the birth of a child or if a beneficiary becomes ineligible.

Eligibility criteria apply for making binding nominations so members should check with their fund.

Tax Considerations

Not all beneficiaries are taxed the same.

• Tax-free: A spouse or dependant can receive superannuation death benefits without tax.
• Taxable: Adult children or non-dependants may pay tax up to 30% (plus Medicare levy) depending on the fund components. Tax treatment also depends on the income component of the superannuation benefit or the beneficiary’s income.

Planning matters. If one child will receive a taxable portion and another tax-free it may be wise to adjust the split to make the distribution fairer in after-tax terms.

This is where a financial adviser can add real value—ensuring your intentions are met in both distribution and fairness.

What to Do Now?

Here’s how to protect your super and your loved ones:

1. Check your nomination: Is it current? Is it valid? Is it binding?
2. Review your Will: Is it aligned with your super nomination especially if you’ve nominated your legal personal representative.
3. Talk to a financial adviser or estate planning specialist: They can help you with the options, explain the tax implications and ensure everything is documented correctly.
4. Review your super contributions regularly: Are your contributions being made correctly and on track to help grow your super balance for your retirement goals.

Your super may be one of your largest assets—and with proper planning you can ensure it goes to your loved ones as you intend. At Insight Wealth Planning we specialise in aligning superannuation strategies with your overall estate planning so your wishes are clear, protected and tax-effective.

If you’re not sure where your super will go—let’s talk. Our team can review your nominations, update your plan and give you peace of mind. As members you get ongoing support and access to exclusive benefits to help you achieve your financial goals and secure your future.

Contact us today.