Non-binding Nomination

A non-binding nomination tells your super fund trustee who you would prefer to receive your superannuation death benefit, but it does not bind them. The trustee retains discretion and will weigh your wishes against the actual financial dependency of potential beneficiaries at the time of your death. This is the default nomination type for many funds, and while it is easy to set up, it offers far less certainty than a Binding Death Benefit Nomination.

Non-binding nominations suit people whose circumstances are simple and stable, but they can produce surprises when family situations are complex. Example: Marco's non-binding nomination favoured his adult son, yet the trustee paid most of the benefit to his financially dependent de-facto partner instead. If certainty matters — blended families, estranged relatives, or large balances — a binding nomination or payment to your estate is usually safer.