Growing your super 2017

Transcription

1 Growing your super 2017

2 Disclaimer This seminar provides general information only. It has been prepared without taking into account your individual objectives, financial situation or needs. You must not rely on this information alone as a sole or primary source of advice or guidance for the purpose of making decisions about your superannuation options. If you are interested in exercising your options in LGIAsuper in relation to a matter referred to in this presentation you should obtain the relevant Product Disclosure Statement and consider contacting an LGIAsuper representative who can give you appropriate advice which does take into account your particular objectives, financial situation and needs.

3 Intro to super

4 Let s talk about What it is How to build it Will it be enough? When you get it

5 What it is

6 What is superannuation? When did super start? Why? SG who receives it? Local government standard contributions

7 How to build it

8 Types of contributions Employer Member Spouse Government

9 Consolidation of super Getting your super together in one fund can help to build your balance Save on fees Consider insurance Easy to keep track of and manage Online transfer tool ATO super search

10 Will it be enough?

11 Will you have enough? Income requirements Income sources Retirement income calculator

12 Retirement income calculator Assumptions: 50 year old, salary $65,000 balance $200,000

13 When you get it

14 Preservation age Birth Date Age Before July Between 1 July 1960 & 30 June Between 1 July 1961 & 30 June Between 1 July 1962 & 30 June Between 1 July 1963 & 30 June From 1 July

15 Release conditions Three phases: Between 55 and 60 Between 60 and 65 On turning 65 Special conditions of release Tax considerations

16 About us

17 About LGIAsuper What we offer Education and advice Low fees and genuine value Long-term solutions

18 Contributions

19 Let s talk about Types of contributions Salary sacrifice Growing your super Contribution caps

20 Types of contributions

21 Types of contributions Employer Member Spouse Government

22 Member contributions Salary sacrifice or after tax? After tax taxed at marginal tax rate Salary sacrifice taxed at 15%

23 Contribution comparison Annual salary Without of salary $60,000 sacrifice Pay income tax of $12,147 After tax contribution of $3,600* Take home annual pay $44,253. $3,600 added to super Annual salary of $60,000 Salary sacrifice contribution of $5,625** Pay income tax of $10,122 Take home annual pay $44,253. $4,781 added to super *Compulsory after tax 6% **Compulsory salary sacrifice %6 plus personal contributions

24 Growing your super $14k $12k $10k After tax member contribution Salary sacrifice member contribution Voluntary before-tax contributions $2,025 p.a. $8k Standard before-tax contributions $3,600 p.a. $6k $4k $2k Employer contributions $7,200 p.a. $0k

25 A 45 year old who salary sacrifices an extra $100 each fortnight could end up with an extra $67,453 at retirement.

26 Contribution caps 2017/18 $180k $150k Concessional Nonconcessional Concessional $125k Employer Salary sacrifice Deductible $100k $75k $50k $25k $25K $100K Non-concessional After tax Spouse $0k

27 Personal contributions Can be made if: under age 65 aged 65 to 74 and meet work test Claim a tax deduction 15% contributions tax counts towards concessional contributions cap

28 Investments

29 Let s talk about Where your money is invested Your options and choice What s your profile?

30 Where your money is invested

31 Asset classes Shares Infrastructure Property Cash Fixed interest

32 Top holdings Top 10 Australian shares 22 June 2017 CBA Westpac ANZ BHP Billiton Ltd CSL Ltd Woolworths Ltd QBE Insurance Group Macquarie Group Brambles Ltd National Australia Bank Top 10 international shares 22 June 2017 Apple Inc Alphabet Inc (Google) Microsoft Corp Johnson & Johnson Tencent Holdings Ltd Roche Holding Visa Inc AIA Group Ltd JPMorgan Chase & Co Exxon Mobil Corp

33 Your options and choice

34 MySuper Lifecycle Strategic asset allocation (under 75) Australian shares International shares Property Infrastructure Alternatives Diversified Fixed interest

35 Choice Ready-made Single asset Socially responsible

36 Making a choice Aggressive Diversified Growth Balanced Defensive Growth Stable Defensive

37 What to consider Timeframe Understand return and volatility Risk tolerance

38 Performance graph Performance of $10,000 invested from 1 June 2016 to 31 December 2016 in the following investments: MySuper Lifecycle s Under 75, Stable, Cash

39 Performance graph Performance of $10,000 invested from 1 July 2011 to 31 December 2016 in the following investments: MySuper Lifecycle s Under 75, Stable, Cash

40 What s your profile?

41 Investment risk profiler What type of superannuation investor are you?

42 Risk profiler example

43 Risk profiler results What type of superannuation investor are you?

44 Intro to transition to retirement

45 Let s talk about Why transition to retirement? How does it work? Things to consider

46 Why transition to retirement?

47 Purpose of TTR Part-time work Extra income Tax saving strategy

48 How does it work?

49 How it works Salary Salary sacrifice (caps apply) Existing super Accountbased pension Net income Pension income (limit 10% p.a.)

50 How can I start a TTR? Minimum $50,000 10% Select pension amount between 4% and 10% Choose Investment option Choose investment option Flexible payment frequency For 2017/18 financial year

51 Things to consider

52 Things to consider Minimum pension payment Maximum pension payment No lump-sum withdrawals Investment options

53 Things to consider Beneficiaries Centrelink impact Tax considerations Eroding wealth

54 Insurance

55 Let s talk about What you re covered for How much is enough? Beneficiaries

56 What you re covered for

57 Death TPD Income Protection Default cover Unit based Reduces with age Unit based Reduces with age Waiting period 90-day wait 2-year benefit 75% of salary Default cover automatically accepted

58 Tailor your cover Cover to suit you Occupational risk Life events

59 How much is enough?

60 Insurance needs calculator

61 Beneficiaries

62 Who can you nominate? Your legal personal representative Your dependents

63 Beneficiary nominations Nominations can be: preferred binding reversionary

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