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

super-health-1220px.jpg

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.

ABS building

The importance of recognising service designers in the 2026 Census

Service Designer and Strategic Designer will be recognised as professions within the Australian classification system used for the upcoming census collection, following a successful case by The Design Institute of Australia. An RMIT expert explains the significance of this step. 

stock-market-trading-screen

South Korea’s AI sell-off shows how quickly market optimism can turn

The South Korean stock market has plunged almost 40 per cent over the last few weeks, wiping billions from investor wealth. An RMIT expert says the sell-off is a stark reminder that market enthusiasm for AI can quickly outpace economic reality.

Decorative image.

News Bargaining Incentive overhaul delivers wins for smaller publishers but leaves AI gap

The federal government has unveiled changes to its News Bargaining Incentive (NBI), aimed at encouraging major digital platforms to financially support Australian news publishers. An RMIT expert says while smaller players will benefit, it does not go far enough in holding technology giants accountable or addressing AI’s growing impact on journalism.

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