Divorce and your super: 3 super tips after a breakup
Going through a divorce or separation can be tough — emotionally and financially. Here’s how to get your super back on track after a split.
Our top tips for this topic
- Check your insurance
- Update your beneficiary
- Build your super balance.
Let’s discuss our super tips with Dan Bridgland, CareSuper’s Financial Advice Manager.
1. Check your insurance
Ask yourself, ‘What would happen if I got sick or injured?’
It’s a fair question, especially when you’re on a single income. The good news is you may already have insurance through your super. As a CareSuper member, you have access to group insurance rates, which are generally cheaper than insuring yourself individually. Check to see if you have insurance and update your cover at any time in MemberOnline.
2. Update your beneficiary
When going through a divorce or separation, your super isn’t usually considered part of your estate. This means you’ll need to let us know who you’d like to receive your super (and any insurance benefits) when you pass away — even if you’ve updated your will.
You can make a non-binding nomination quickly and easily in MemberOnline or by calling us on 1300 360 149. Due to super laws, a non-binding nomination acts as a guide only. This means we’ll consider your nomination, but your super could end up going to someone else.
To make sure your super goes to who you nominate, you can make a binding nomination using our form. There are two kinds of binding nominations you can make (lapsing and non-lapsing), so see which one’s right for you.
3. Build your super balance
If your super balance has been affected by a divorce or separation, you might like to consider building your super up again. Making personal contributions via BPAY® is the quickest and easiest way to top up your super from your after-tax income. Plus, you can make a personal contribution when it’s financially convenient for you.
You can also give your super regular boosts through salary sacrificing by asking your employer to make extra contributions on your behalf from your before-tax income. Just remember, there are limits to how much you can contribute to super each year called contribution caps. Salary sacrificing gives your super regular boosts, which can make a big difference over the long term. (Plus, it could also help you save on tax!).
Get super advice — it’s free*
If you’re a CareSuper member, you can get super-related advice over the phone at no extra cost.* If your finances are more broad than just super, you can also get in touch with a specialist financial planner who can help.^
We’re here to help
*Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.
^Advice is provided by one of our financial planners who are Authorised Representatives of Industry Funds Services Limited (IFS). IFS is responsible for any advice given to you by its Authorised Representatives. Industry Fund Services Limited ABN 54 007 016 195 AFSL 232514.