15.5M Australians Risk Super Going to the Wrong Beneficiary
Synopsis
New research from Super Consumers Australia found millions have no binding death benefit nomination, increasing the risk their retirement savings may not be distributed according to their wishes.
New research into the distribution of superannuation death benefit following the death of a member shows that 15.7 million Australians have not nominated a death benefit recipient.
The estimate is based on the Your Say on Super survey conducted by Super Consumers Australia (SCA) with a sample size of 5,000 persons between August 7 and September 9, 2025. The results indicate that 87% of respondents had not made a binding death benefit nomination.
Super Consumers multiplied this proportion by figures from the Australian Taxation Office which showed that around 18 million Australians have a superannuation account, to arrive at the number of 15.7 million.
$4.44 Trillion Retirement Pool
The figures relate to a major retirement savings market. According to Australian Prudential Regulation Authority data, as of March 2026, the value of Australians’ superannuation savings is $4.44 trillion. This sum is held in 23.6 million superannuation accounts.
The value of superannuation assets increased by approximately $2.79 trillion of assets were under the control of APRA-regulated members. Total payments for benefits rose to $143.5 billion during the 12 months to March 2026, as did contributions, to $226.1 billion.
A binding death benefit nomination is a legal document providing instructions regarding a superannuation fund’s death benefits to a nominated person. By superannuation law, if there is no binding death benefit nomination, the trustee has absolute discretion over the distribution of a member’s benefits.
Depending on the fund, death nominations can be non-lapsing or lapse after three years, and there are superannuation funds allowing non-binding nominations
ASIC Tracks Claims Delays
The latest initiative fits within ASIC’s death benefit claims examination. From recent reviews of death benefit claims processes of 45 superannuation trustees, only 3% accelerated the time it took to resolve death claims.
The review revealed that the previous audit had the longest processing time for death benefit claims without a nomination or with a non-binding nomination.
The government is considering introducing mandatory time limits for superannuation funds to process insurance claims, including death benefits. The government will respond to the consultation following the publication of responses.
Super Consumers Australia advocates for more open communication from superannuation funds to members, as well as easier ways for members to make binding death benefit nominations.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
