Concern about super after death a low priority
Most superannuation members are not thinking about what will happen to their super once they die, the Association of Superannuation Funds of Australia (ASFA) said.
CEO Pauline Vamos said many people can find it overwhelming and not know where to begin, and said ASFA has released a fact sheet with information on the processes of nominating different types of beneficiaries.
"Many people do not realize that their superannuation is treated differently to their other assets when they die," Vamos said.
"However, often it will be one of the biggest assets they are able to pass on. Being specific about their wishes and providing the right information to their fund is therefore crucially important."
ASFA has also released a best practice paper for its members on managing death benefit claims.
The paper includes topics including the payment of death benefit lump sums and income streams, and the tax treatment of each, dealing with binding and non-binding nominations, and deciding the allocation of benefits between dependents.
"The majority of the time claims are paid in a timely manner. Many claims can be made online, and help is available through your fund and they rarely require legal input. Most of the time, involving lawyers can drive up the costs and complexity of the process unnecessarily," Vamos said.
AUTHOR
Malavika Santhebennur
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
