One of the most common questions I hear from people after losing a partner is: What do I do about their superannuation?
Superannuation is often one of the biggest assets someone leaves behind, but it can also be the trickiest to manage – something that can make those early months of grief feel even more stressful than they already do.
On a recent episode of my podcast Life, Loss & Legacy, I sat down with Nathan Fradley, fellow independent financial adviser and someone who works extensively in complex estate planning matters, to talk through this common issue surviving partners face.
Whether you’re currently navigating this yourself, or you’re trying to make life easier for the people you love in the future, here are some of the key takeaways from our conversation.
Tracking down their super can be challenging
When someone passes away, the surviving partner is often left trying to piece things together while also dealing with grief, admin and the hundreds of other things that come with losing someone. “In a lot of circumstances, that can be really difficult – especially if one person has managed the money, it can be hard to know what products you have and where to start,” Nathan says.
Where was the super held? Were there multiple accounts? Was there insurance attached?
Checking bills, statements and any other documents you have at home is a good first port of call. You can also find information on any accounts in their MyGov portal, which an accountant will also be able to view.
Super doesn’t automatically follow the will
Many people assume superannuation follows the will – but unlike many other assets, superannuation generally isn’t automatically treated as part of the estate. That means even if someone had a valid will, their super may be dealt with separately.
In practice, that usually means the super fund trustee has a significant role in determining what happens next. And yes – that can come as a huge surprise to families who assumed everything would be simple.
Beneficiary nominations can make things complicated
A lot of the time, the outcome comes back to one key question: Did the person have a valid binding death benefit nomination in place?
If they did, the trustee will generally be required to follow it. If they didn’t – or if the nomination had lapsed – the trustee may have discretion about where the money goes.
“This is where things can become complicated, particularly in blended families, after separations, or where paperwork hasn’t been reviewed in years,” Nathan explains.
Each super fund has its own claims process, documentation requirements and internal review procedures. That often means certified ID, death certificates, proof of relationship, forms, follow-ups and lots of waiting.
Navigating this process can feel incredibly draining when you’re already dealing with so much, and Nathan and I both agree that setting realistic expectations is key.
Insurance can add another layer of complexity
Many Australians hold life insurance through their super, which you assume would be a positive thing. But this can actually complicate the claims process, because in many cases the insurance proceeds are paid into the super fund first before being distributed to beneficiaries.
That means extra approvals, extra administration, and sometimes a much longer timeline than families expect.
Taking a lump sum isn’t the only option
Your superannuation payout doesn’t always have to look like a lump sum landing in your bank account. Depending on the circumstances, there may be options to continue pension payments or structure the benefit in a way that better supports the ongoing income needs of the surviving spouse.
This is one of the reasons that it pays to get advice from a trusted professional – because when it comes to superannuation, things aren’t always what they seem.
Losing a partner is one of the hardest things you can go through, and the financial admin can feel punishing at a time when you’re already carrying a heavy load.
At PlanningSolo, helping people navigate exactly these kinds of transitions is a big part of what we do.
We can’t make the loss easier – but we can help make the financial side of things feel clearer, calmer and far less overwhelming.
If you’d like to hear the full conversation with Nathan, you can listen to the episode here.
And if you’re currently going through this and need guidance, I’m here to help. Book a no-obligation call to talk through your situation here.
P.S. Want to know more about getting your financial house in order after loss? You might be interested in my piece When tax meets grief: what executors need to know.
