Who gets your superannuation when you die?

You may not have left your super to the person you intended. Strict rules govern how your super is distributed when you die - and its important to follow those rules to make sure your money goes to whom you want

One of the most important decisions you make when you join a super fund has nothing at all to do with investment. It revolves around the question of who to nominate as the beneficiaries of your super when you die.
It is a critical decision - because if you don't get it right your savings could be given to someone other than your preferred beneficiaries.

Few exceptions

When a fund member dies, subject to the trust deed, his or her superannuation may only be paid to:

• The member's spouse (including a de facto spouse, whether same sex or not)
• The member's children
• A person who was financially dependant on the deceased member at the date of death
• A person with whom the deceased member had an interdependency relationship at the date of death
• The member's legal personal representative (estate)

An interdependency relationship is defined as one between two persons (whether or not related by family) where:

• They have a close personal relationship; and
• They live together; and
• One or each of them provides the other with financial support; and
• One or each of them provides the other with domestic support and personal care.

For the purposes of that definition, all of the circumstances of the relationship between the persons must be taken into account, including (where relevant):

• the duration of the relationship; and
• whether or not a sexual relationship exists; and
• the ownership, use and acquisition of property; and
• the degree of mutual commitment to a shared life; and
• the care and support of children; and
• the reputation and public aspects of the relationship; and
• the degree of emotional support; and
• the extent to which the relationship is one of mere convenience; and
• any evidence suggesting that the parties intend the relationship to be permanent;

A determination can take into account a statutory declaration signed by one of the persons to the effect that the person is, or (in the case of a statutory declaration made after the end of the relationship) was, in an interdependency relationship with the other person.

The beneficiaries you nominate when you join a fund are normally only a guide - the trustees of your fund will have the ultimate discretion as to who will receive your super. They will take into consideration any nomination of beneficiaries that you have made, but are not bound by your request.

The only exception is where your super fund allows you to make a "binding death benefit nomination". This is a nomination that the trustees are obliged to follow. You may only nominate a spouse, child, someone who you held an interdependency relationship with, or a financial dependant.

If you want your superannuation to pass to someone else, such as a friend or charity, you should consider nominating your estate as the preferred beneficiary of your superannuation entitlements. You superannuation will then be distributed according to the terms of your will - you would need to nominate such people or bodies as beneficiaries of your will.

Regular review

It is important to review death benefit nominations regularly and to include full details of your beneficiaries - including their relationship to you, their full name and their address.

Keeping your super fund trustee informed of any changes to your beneficiaries - or changes to their personal details - will make the task of distributing your super much less complex for all involved.

It's also worth noting that binding death benefit nominations are only valid for three years - so make sure you update your nomination regularly.

To be valid, a binding death benefit nomination must be:

• Signed by you; and
• Witnessed by two persons who are not beneficiaries of the nomination; and
• Contain a declaration signed and dated by the witnesses that the nomination was signed in their presence.

Who to leave your superannuation to (and how) can be a complex question that can involve tax, social security and other financial considerations. This is an important knowledge area when it comes to understanding your money.

Source: Strategy Steps

Start saving now

Saving is great but investing is even better. By investing your hard-earned savings, you're making your money work for you. Investigate the range of investment options available in today's ever changing financial marketplace.

Successful saving

·         The average annual wage is now around $60,000 – more than enough to put something away for a rainy day

·         Studies show that Australian households are more likely to be in debt than to be in the habit of saving

·         Many people increase their level of spending with every salary increase

Why save?

·         Make you feel more secure about meeting your needs, such as rent or mortgage payments, bills and living expenses

·         Make it possible to achieve some of your wants, such as a holiday, new car or increased retirement savings

Short-term

·         Frees you up from the stress of living from one payday to another

·         Access savings instead of potentially higher interest options such as credit cards or cash advances

Medium-term

·         Establishes a financial track record

·         Make it easier for you to achieve previously unreachable goals such as a holiday or new car

Longer-term

·         Increasing your quality of life

·         To supplement your superannuation when you retire

·         Can fund other longer-term investments such as shares or managed funds

How much is enough?

·         A savings goal is personal and depends on what you want to achieve and by when

·         Save between five and 10 per cent of your gross (pre-tax) income

·         Saving more than 10 per cent is likely to be unsustainable

Where do I want to be?

·         Set some short, medium and long-term goals so you can start slowly, until you

·         get the hang of it

How do I start?

·         High-interest earning account or a cash management account, separate to your everyday banking

·         Savings will grow quickly (as long as you don't touch them)

·         Ask if your employer can put money from your pre-tax salary straight into a savings vehicle or even your superannuation

·         Share purchase schemes where you can't access your money for a year

The sooner you start, the sooner you can reach your savings goals and enjoy the financial security you deserve.  Our Money for Life Program is a great way to gain control of your finances and help you to save.

Overtime May Add More to Your Waistline than Your Wallet

Do you have a schedule that requires you to work more than forty hours per week, leaving you exhausted at the end of every workday? If so, go and weigh yourself. If the number on the scale is higher than you believe it should be, you can probably blame your busy schedule for contributing to your excess weight.

Work can add weight—that’s the conclusion of a new Finnish study involving 9,000 Helsinki city employees, ages 40 to 60. University of Helsinki researchers found that weight gain was especially likely for individuals who must balance demanding jobs with the hectic requirements of family. In the study, a fourth of the women, along with 19 percent of the men, reported that they had gained weight the previous year. Strongly associated with weight gain was work fatigue.

The study identified two basic risk factors that seem to lead to weight gain: (1) consistently working beyond the standard 40 hours per week, and (2) consistently experiencing feelings of work fatigue.

The first factor, particularly high among women, involved those participants who expressed dissatisfaction with how they were able to combine paid work with family life. The second factor involved participants who agreed with three or more of these statements:

• My work is definitely too stressful.
• I feel like I'm totally exhausted.
• I feel totally worn out after a day at work.
• I feel tired in the morning when I have to get up and go to work.
• I worry about my work even when I'm off duty.
• I have to work too hard.

Researchers concluded that both risk factors involve work fatigue or burnout—conditions that may tempt workers to soothe midday stress by turning to vending machine treats, scarfing down fast food, and skipping exercise because they lack both time and energy. So what can you do if extra hours on the job may be causing you to pack on the pounds? Only you can be the judge of what you can do to improve the situation, but here are some tips that may help:

• Take a break from your television for a week—or even one day a week. You may be surprised to find yourself enjoying the quiet, picking up a book you've always meant to read, or talking to your kids. At the very least, you may find yourself going to bed earlier when you feel tired, instead of spacing out in front of the tube.
• Look for areas of your life to simplify or consolidate. For example, can you set aside a day to run all (or even most) of your errands, saving time and gas? Can you teach your kids to plan ahead so that you’re not heading to the mall every other day?
• Evaluate your work schedule and tasks. See which items require some overtime, and then try to plan one or two days to consciously work overtime to accomplish those tasks. You may still be working long hours, but you’ll have some control over your schedule, rather than being at someone else’s whims. You may even improve your efficiency.
• Take a good hard look at your job. Is it a good fit for you? While we all have areas of dissatisfaction in our work, it’s generally not normal to be continually exhausted at the end of the day. When we’re well suited to our work, we should enjoy it much of the time. Assuming that you don’t have an untenable amount of work (and if you do, that may require a conversation with the boss), maybe it’s time to start looking for a new job.

Author:  Rebecca Pratt, Sparks People