Superannuation shock: Why death benefit wishes may not be legally enforced

Superannuation shock: Why death benefit wishes may not be legally enforced

New findings from Super Consumers Australia show an estimated 15.7 million Australians may not have a binding death benefit nomination. An RMIT expert explains why this exposes a major gap between what people think they are doing with their retirement savings and what the law actually allows them to control.

Professor Angel Zhong, School of Economics, Finance and Marketing:   

“Many Australians assume that if they have written down who they want to receive their money, their wishes will automatically be followed. Superannuation does not work that way. 

“This is a financial literacy problem, but it is also a design problem. We cannot expect consumers to understand a complicated legal distinction between binding and non-binding nominations if funds are not making that distinction clear and prompting members to act. 

“For something as important as deciding who receives your lifetime savings, relying on passive communication is not enough. Super funds should be actively prompting members at key life events and making the process simple. 

“The lesson for Australians is simple: do not assume your will tells your super fund what to do. Check your nomination, make sure it is legally binding if that is what you intend, and check whether it needs to be renewed.” 

Dr Angel Zhong is a Professor of Finance, specialising in global financial markets, behaviour and trends.   

***

General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

10 August 2026

Share

Return to RMIT News
10 August 2026

Share

Engage

Related News

Person tapping a card on an efpos machine

Cash is back as we head into sales season

Australia's October 1 card surcharge ban is reshaping how consumers think about money and spending – especially heading into peak summer sales season. An RMIT expert explains the impact this could have on how consumers approach spending. 

Food shelves

Should governments regulate supermarkets or run them?

The Green Institute has proposed establishing a publicly owned supermarket chain to challenge the dominance of Coles and Woolworths. An RMIT expert says increasing competition would be a more effective way to reduce grocery prices than having governments enter the retail market. 

aust-cham-1220x732.jpg

Majority of Australian businesses recommend investing in Southeast Asia

Australian businesses operating in Southeast Asia remain confident of future success and expansion in the region, according to the latest AustCham Australian Business in ASEAN Survey. 

Coins stacks with graphs superimposed behind

Australia’s intergenerational outlook raises questions about tax cuts, debt and productivity

The Australian Government has today released its latest Intergenerational Report, outlining the long-term economic and demographic pressures Australia faces over the next 40 years. An RMIT expert explains the key takeaways.

Show more
aboriginal flag float-starttorres strait flag float-start

Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Sentient' by Hollie Johnson, Gunaikurnai and Monero Ngarigo.

More information