NZDF superannuation. The new chapter. NZDF, Mercer (NZ)Ltd, Milestone Direct

Transcription

1 NZDF superannuation The new chapter NZDF, Mercer (NZ)Ltd, Milestone Direct

2 NZDF SUPERANNUATION: THE NEW CHAPTER Welcome and introductory comments How this journey began DFSS review directed by CDF Tender processes CDF decisions made in January 2015 and September 2015

3 NZDF SUPERANNUATION: THE NEW CHAPTER CDF decisions New Zealand Defence Force KiwiSaver Scheme for members and the Defence community New Zealand Defence Force FlexiSaver Scheme for members and the Defence community DFSS existing arrangements continue, with three improvements

4 NZDF SUPERANNUATION: THE NEW CHAPTER The ability for members to continue contributing to the five Schemes after they leave NZDF Appointment of Mercer (N.Z.) Limited as licensed investment manager The engagement of Milestone Direct Limited as financial advisers to members of NZDF and the Defence community Establishment of the Force Financial Hub

5 NZDF SUPERANNUATION: THE NEW CHAPTER Why has CDF made these decisions CDF s commitment to the financial wellbeing of members and their families The world is changing people will live longer and be retired longer Importance of starting to save early, for retirement or for owning a house

6 NZDF SUPERANNUATION: THE NEW CHAPTER Joined up approach, linking saving to a broad range of financial advice, tools and products The ability to obtain greater benefits for members by having everyone together in one Scheme

7 NZDF SUPERANNUATION: THE NEW CHAPTER Introducing the Force Financial Hub Internet portal, accessed through Force4Families site Creates a one stop shop for NZDF members and their families Products/benefits Information Financial awareness/empowerment Financial advice Transactions

8 Financial Hub

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10 NZDF SUPERANNUATION: THE NEW CHAPTER The new NZDF KiwiSaver Scheme Member contribution / CDF contribution (for NZDF members) Focus on retirement/purchase of first home CDF retention payments: 3 x $1,000 before tax paid to NZDF members KiwiSaver accounts (after year 1, 4 and 7 of contributions) Funds locked into age 65 unless withdrawal criteria met

11 NZDF SUPERANNUATION: THE NEW CHAPTER New Zealand Defence Force FlexiSaver Scheme Money not locked in until age 65. You access funds when you want You set the contribution rates; no CDF contribution Focus on other savings goals No age restrictions

12 NZDF SUPERANNUATION: THE NEW CHAPTER DFSS what is happening? Existing arrangements continue Three improvements (refer to Fact Sheet) Options available for DFSS members, including no change DFSS insurances no change, transitional MIBP cover ceases on 30 June 2016

13 NZDF SUPERANNUATION: THE NEW CHAPTER All five NZDF schemes Rewards: 16 x $250 cash each month, two large annual rewards Access to new tools (e.g. retirement calculator) Access to free or subsidised financial advice

14 Your investment choices Shares High Growth Growth Balanced Moderate Conservative Cash

15 Strong returns while managing risk Fund 3 year return (% per year) 5 year return (% per year) Cash Conservative Moderate Balanced Growth High Growth Shares Returns are after fees but before tax to 30 June 2015.

16 Flexisaver example Start with $10,000, and contribute $100 per week. If you started doing this 5 years ago, today you would have: Cash Conservative Balanced High Growth Total $39,400 $43,600 $46,900 $50,000 Profit $3,400 $7,600 $10,900 $14,000 Returns are after fees and after tax to 30 August 2015.

17 Value for money Source: Sorted.

18 Online enrolment

19 M I L E S T O N E D I R E C T W H O A R E T H E Y A N D H O W C A N T H E Y H E L P M E?

20 WHO ARE MILESTONE DIRECT? A network of experienced financial advisers located across NZ Trusted partner of NZDF Appointed to put your interests first Existing client net worth of $1bn under advice Independent to product providers

21 WHY THIS IS GOOD FOR YOU Knowledgeable on all financial products Activity is monitored by NZDF to ensure we are putting your needs first Specially negotiated pricing No charge for general advice More detailed advice $150 or $250 Full financial review $250 or $450 Anytime advice $35-$45 per month Complex advice - referred to local adviser G0od advice is beyond all price Proverb

22 TURNING DREAMS INTO REALITY The best way to predict your future is to create it How can I afford my first home? What s the best way to save for a new car? How do I build wealth through rental properties? How much insurance do I need and what type? Am I paying too much for existing advice? Do I have the right products? Would I be better off switching to the NZDF solutions? How can I save money on my mortgage?

23 QUESTIONS? If you can t think of any now, contact us on 0508 MILESTONE ( ) Knowledge is having the right answer. Intelligence is asking the right question Proverb

24 NZDF SUPERANNUATION: THE NEW CHAPTER Call to action Read the resources provided Talk to your families Sign up to the New Zealand Defence Force KiwiSaver Scheme Sign up to the New Zealand Defence Force FlexiSaver Scheme Get into the rewards draws Talk to a MDL financial adviser

25 NZDF SUPERANNUATION: THE NEW CHAPTER Further information Force Financial Hub Stay on to ask questions Call the Mercer Helpdesk Talk to the HRSC or your local HRA Talk to a Milestone Direct Financial Adviser