Lapsing Nomination:

• What it is: A binding beneficiary nomination that expires after a certain period, usually three years.

• Key feature: You need to renew it periodically to keep it valid.

• Pros: Provides a reminder to review your nomination and ensure it's still up-to-date.

• Cons: If you forget to renew it, your nomination becomes invalid, and the super fund may distribute your benefit at their discretion.

Non-Lapsing Nomination:

• What it is: A binding beneficiary nomination that remains valid indefinitely, unless you revoke or change it.

• Key feature: Doesn't expire, so you don't need to renew it regularly.

• Pros: Offers peace of mind knowing your wishes will be followed as long as the nomination remains valid.

• Cons: You need to remember to update it if your circumstances change.

Which one to choose?

The choice between lapsing and non-lapsing depends on your personal preference and circumstances.

• Lapsing: May be suitable if you want a regular reminder to review your nomination or if you anticipate your circumstances may change frequently.

• Non-lapsing: May be better if you have a stable family situation and don't want the hassle of renewing your nomination.

Important Note: Regardless of whether your nomination is lapsing or non-lapsing, it's always a good practice to review it periodically to ensure it still reflects your wishes and is up-to-date with any changes in your personal or financial situation.