How do you pass on your super?

Understanding how super is passed on to loved ones if the worst should happen is one way you can protect what’s important.

Your super does not automatically form part of your estate and is not included in your Will. This is because your super is held in a trust by your super fund.

But you do get to choose who your super goes to when you die by making sure your hard-earned retirement savings are distributed according to your wishes.

The person you nominate to receive your superannuation death benefit is defined as your beneficiary.

When you die, your beneficiaries can claim your death benefit, which includes any account balance and any death cover (life insurance) you may have had through your account.

What are the different beneficiary nomination options?

Nominating a beneficiary can provide clarity about who you want to receive your super if you die. You can choose not to make a nomination, in which case your benefit will generally be paid to your dependents or legal personal representative.

If you choose to make a beneficiary nomination, there are two main options:

  Accumulation account holders can make a binding death benefit nomination as to who they would like to receive their super (and any insurance benefit they may have) in the event of their death.

  Income account holders can either make a binding death benefit nomination or choose to nominate someone to continue receiving their Income account payments.

If members are making a binding death benefit or reversionary beneficiary nomination, you can make, update, or renew your choice any time by logging into Member Online.

Binding death benefit nomination

A binding death benefit nomination lets you decide who will receive your super (and any insurance benefit you may have) in the event of your death.

If you have an accumulation-style super account, you can nominate one or more of your dependents, or you may nominate your legal personal representative.

This person, or people, are known as your nominated beneficiaries. This factsheet has more information on a binding death benefit nomination.

Reversionary beneficiaries

A reversionary beneficiary is someone who will receive the money in your retirement Income account if you pass away.

If you have an Income account, you can nominate one dependent to continue to receive regular income payments from your account, or withdraw your money as a lump sum.

Your reversionary beneficiary nomination will be considered over any binding death benefit nomination you had in place.

What payment might your beneficiary receive?

If you have made a binding death benefit nomination, your remaining super balance will be paid out in a lump sum to your beneficiaries, including any death insurance benefit payout.

If you have an Income account and have made a reversionary beneficiary nomination, your dependant can either choose to continue receiving regular income payments from your account, or withdraw your money as a lump sum.

We’re here to help

Making a binding death benefit nomination can be a good way to ensure your loved ones are protected if you die. Make the most of your super, with professional guidance available over the phone.^*

* Deciding what is best for you will depend on your personal circumstances and you may want to seek personal financial advice to get the most from your superannuation. You can find out more about financial advice options at qsuper.qld.gov.au/advice