Non-binding Nomination in Super: 2026 Guide for Australians

When you complete a non-binding nomination form, you list your preferred beneficiaries—these are usually your spouse, children, or other dependents. If you die, the trustee reviews your nomination and considers your relationships and circumstances at the time of your death before making a decision about who receives your super.

Key points to understand:

• Trustee discretion: The trustee is not legally bound to follow your nomination. They must consider your wishes, but they also take into account your current relationships and any dependents who may have become financially reliant on you since you made your nomination.

• No expiry: Non-binding nominations generally do not expire, unlike binding nominations, which often require renewal every few years. This can be convenient, but it also means your nomination could become outdated if your circumstances change.

• Changing circumstances: If your family situation changes—such as through marriage, divorce, or the birth of a child—the trustee can adjust the distribution of your super to reflect your current situation, even if you haven’t updated your nomination.

• Complex families: If you have a blended family or other complex relationships, the trustee’s discretion can help ensure that your super is distributed in a way that reflects your actual circumstances at the time of your death.

In recent years, regulators have encouraged trustees to investigate members’ circumstances thoroughly before making a decision. This means your non-binding nomination is an important guide, but not a guarantee.

Choosing between a non-binding and a binding nomination depends on your personal situation and preferences. Here are some of the main advantages and disadvantages of non-binding nominations in 2026:

Pros

• Flexibility: Because non-binding nominations do not expire, you don’t need to renew them regularly. They can also adapt to changes in your personal circumstances, as the trustee has the discretion to consider your current situation.

• Suitable for changing families: If your relationships or financial dependents are likely to change, a non-binding nomination allows for more flexibility than a binding nomination.

• Discretion for trustees: Trustees can make decisions that reflect your life at the time of your death, rather than being limited by instructions you may have given years earlier.

Cons

• No certainty: There is no guarantee that your nominated beneficiaries will receive your super. The trustee may decide to distribute your super differently if they believe it is more appropriate.

• Potential for disputes: Family members may contest the trustee’s decision, which can lead to delays or legal proceedings.

• Less control: If you want absolute certainty about who will receive your super, a binding nomination or a valid superannuation will may be more suitable.

Non-binding nominations are often chosen by people who value flexibility or whose personal circumstances are likely to change. For example, if you have a blended family, are unsure about future relationships, or want the trustee to have the ability to consider new dependents, a non-binding nomination can be a practical choice.

However, if you have clear wishes about who should receive your super and want to minimise the risk of disputes or delays, you may prefer a binding nomination. It’s important to review your nomination regularly, especially after major life events such as marriage, divorce, or the birth of a child.

If you do not make any nomination, the trustee of your super fund will decide who receives your death benefit. They will consider your relationships and financial dependents at the time of your death. This process can take time and may not always reflect your preferences, so it’s generally a good idea to make some form of nomination, even if it’s non-binding.

Because non-binding nominations do not expire, it’s easy to forget about them. However, it’s important to review your nomination regularly to ensure it still reflects your wishes. Consider updating your nomination if you experience any of the following:

• Marriage or divorce
• Birth or adoption of a child
• Death of a nominated beneficiary
• Significant changes in your financial or family circumstances

Keeping your nomination up to date helps the trustee understand your intentions and can make the process smoother for your loved ones.

In 2026, trustees continue to play a central role in distributing superannuation death benefits. They are required to act in the best interests of fund members and their beneficiaries, and to follow the rules set out in the fund’s trust deed and relevant legislation.

Recent regulatory guidance has emphasised the importance of trustees investigating members’ circumstances thoroughly before making a decision. This means trustees are expected to consider your nomination carefully, but they still have the discretion to distribute your super in a way they believe is fair and appropriate.

If you have a superannuation account, here are some practical steps to take:

1. Check your current nomination: Log in to your super fund’s online portal or contact them to see who you have nominated as beneficiaries.
2. Review your nomination regularly: Aim to review your nomination at least once a year, or whenever your circumstances change.
3. Update your details: Make sure your super fund has your current contact information and details about your relationships and dependents.
4. Consider your options: Think about whether a non-binding nomination, binding nomination, or superannuation will best reflects your wishes.
5. Seek advice if needed: If you have a complex family situation or are unsure about the best approach, consider seeking professional advice. You may also want to explore insurance brokers if you’re reviewing your broader estate planning needs.

A non-binding nomination is a flexible way to express your wishes about who should receive your superannuation death benefit. In 2026, trustees are expected to consider your nomination carefully, but they retain the discretion to make the final decision based on your circumstances at the time of your death. Regularly reviewing and updating your nomination helps ensure your intentions are clear and can make things easier for your loved ones in the future.