Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement

Transcription

1 Inside this PDS Issued 17 February 2014 Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement Superannuation law requires that we call this booklet a Product Disclosure Statement (PDS). But in effect, it s a summary guide to Suncorp WealthSmart and to super generally About Suncorp WealthSmart How super works Benefits of investing with Suncorp WealthSmart Risks of super How we invest your money Fees and costs How super is taxed Insurance in your super How to open an account How to contact us This PDS, prepared on 17 February 2014, provides a summary of the key information you need to make a decision. It includes references to additional information that is part of this PDS (marked with a ) which is material incorporated by reference. The information in this PDS is general information only and doesn t take into account your personal objectives, financial situation or needs. Before making a decision, you should consider the information in this PDS and should obtain financial advice tailored to your personal circumstances. Suncorp Portfolio Services Limited (Trustee) (ABN , AFSL , RSE Licence No L ) is the trustee of Suncorp WealthSmart and the issuer of this PDS (and any information incorporated by reference) and takes responsibility for its contents. Contact us If you have any questions about Suncorp WealthSmart or would like a free paper copy of this PDS or any information incorporated by reference, contact us on or suncorpwealthsmart@suncorp.com.au.

2 1 About Suncorp Wealthsmart 2 How super works Suncorp WealthSmart is a comprehensive, efficient and simple to understand means of saving for your retirement and then funding your lifestyle once you ve retired. Suncorp WealthSmart is three things in one: a complete super account, for when you re working and building up your savings a transition to retirement option, for when you re approaching the end of full-time work a pension account, for after you ve stopped working. Suncorp WealthSmart is provided by Suncorp Portfolio Services Limited (SPSL), a wholly owned subsidiary of Suncorp Group Limited. SPSL is the trustee of Suncorp WealthSmart. (The trustee is a semi-independent body that makes sure our super fund is run in the best interests of our customers and as per superannuation law.) Throughout this PDS you ll see wording in grey boxes, like the one at the bottom of this page. This means we are required by law to include it. Your super savings accumulate in three ways: 1. Super is partly compulsory in that employers must contribute 9.25% (gradually rising to 12%) of most employees salary into a super fund. Most people can choose which super fund their employer pays their contributions into. 2. Your money doesn t sit idle - it s invested. Your account balance may fluctuate but over time it should grow. The Government helps by providing various tax savings. 3. You can add more money to it yourself. You might consider doing this because relying on your employer s contributions and your investment returns might not be enough on their own. There are several things you can do to grow your super. Make extra contributions from your take-home pay You can make a one-off contribution or set up a regular direct debit payment plan with as little as $100 per month. If you re on a lower income you might also benefit from the Government s co-contribution scheme. Salary sacrifice into your super Asking your employer to allocate a portion of your pre-tax salary into your super may be the easiest and most tax-efficient way to boost your account. There are limits (called contribution caps ) on the amounts you can contribute to super in any one financial year, and financial penalties if you exceed them. Check with your financial adviser, or refer to Putting money into your Suncorp WealthSmart account in the Product Guide for more information. Combine multiple super accounts into one By combining (rolling over) all your super into the one account, you stop paying multiple sets of fees and receiving multiple sets of paperwork. Consolidating your accounts is easy, and we can help you. You can even do most of it online using our Super Rollover Wizard visit suncorpsuperrollover.com.au to get started. If you have a transition to retirement option or pension account (rather than a super account), please note that you can t make additional contributions to it once your account has been opened. For more information on how these super contribution strategies could work for you, speak to your adviser. Withdrawing your super To give your super time to grow, it s preserved throughout your working life, and access is generally restricted until you reach retirement age or meet what s called a condition of release. Withdrawing from a transition to retirement option You can t make lump sum withdrawals from a transition to retirement option, but you can receive income payments up to a maximum of 10% of the account balance. Withdrawing from a pension account You can generally access the money in your pension account at any time, either by receiving regular income payments or by requesting a lump sum withdrawal of all or part of your account. You should read the important information about How super works before making a decision. Go to Putting money into your Suncorp WealthSmart account and Taking money out of your Suncorp WealthSmart account in the Product Guide. The material relating to How super works may change between the time when you read this PDS and the day when you sign the application form. 2 Suncorp Superannuation

3 3 Benefits of investing with Suncorp WealthSmart 4 Risks of super Suncorp WealthSmart has the features and flexibility to help you reach your financial goals and enjoy the retirement lifestyle you want. Competitive fees Suncorp WealthSmart has competitive fees, and the administration fee may be discounted for larger account balances, or if you link your Suncorp WealthSmart account with those held by your family members. Investment choice to suit all types of investors You can choose from 41 investment options, which include: access to the Suncorp Lifestage Fund, an investment option that changes as you get older nine diversified portfolios managed by specialist investment manager, Ibbotson Associates a diverse range of single sector options Suncorp WealthSmart Term Deposits. Comprehensive insurance cover within your super There can be big advantages in taking out life insurance inside your super. You can protect yourself and your family via your Suncorp WealthSmart account with the following types of insurance: Death cover to a maximum of $5 million Total and Permanent Disablement cover to a maximum of $3 million Income Protection cover up to age 65 and a maximum of $25,000 per month. Stay in control with easy online access You can view and manage your Suncorp WealthSmart account online whenever you like. Our secure site lets you update your details, view your account balance and insurance details, easily switch between investment options (other than Suncorp WealthSmart Term Deposits), and much more. Tips and tools to help you grow your super savings With our DIY educational support tools and resources, we ll show you how taking steps to boost your super needn t be time-consuming or difficult with: regular updates with links to online articles, news and investment market updates online updates on financial markets and investing an interactive online retirement simulator to help you see if your savings are on track an online risk profiler to help you learn which types of investments might best suit you an online Super Rollover Wizard to easily combine multiple super accounts into your Suncorp WealthSmart account an online learning centre with resources and education modules. communications If you want to keep your super paperwork to a minimum, we can send you important communications such as annual statements, transaction confirmations and confirmations of changes to your account by where possible. All types of investment, including super, carry risk. The level of risk tolerance varies for each person depending on things like their age, how long they plan to keep their investment for, and what other investments they ve got. That s why it s important to speak to your adviser before making any investment decisions. Most importantly, you should understand that: The overall risk with super is that you may not end up with enough money to provide you with an adequate lifestyle when you stop working. As a general rule, riskier investments will provide a higher potential long-term return. By the same token, the smaller the risk an investment poses, the lower the potential return it will provide. The value of your investments (and thus your super account balance) may go up or down. Unless specified, investment performance is not guaranteed, which means you could lose some or all of your money. Investment returns will vary. Just because an investment or asset class has done well in the past doesn t necessarily mean it will do well in the future. Laws affecting super (such as superannuation, taxation and social security laws) change. Super is generally preserved until you retire or meet another condition of release. It s a good idea for you to consider what these risks might mean for you. If you re not sure how you feel about risk, you ll find tools and calculators on our website or give us a call and we can help you. You should read the important information about the Benefits of investing with Suncorp WealthSmart before making a decision. Go to About Suncorp WealthSmart in the Product Guide. The material relating to Benefits of investing with Suncorp WealthSmart may change between the time when you read this PDS and the day when you sign the application form. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement 3

4 4 Risks of super (cont) 5 How we invest your money Standard Risk Measure The Standard Risk Measure (SRM) is a calculation we do to help make it easier for you to compare the riskiness of investment options. It tells you how many negative annual returns an investment option can be expected to deliver over any 20 year period. The SRM doesn t assess all forms of risk so it s important you read the Understanding Investment Risk flyer, available on our website. Suncorp WealthSmart gives you a choice of 41 investment options, which fall into two categories: 1. Diversified investment options Suncorp Lifestage Fund We allocate you a diversified investment mix determined by your age so you don t have all your eggs in one basket. And as you get older, we ll automatically change it to better suit your changing needs and risk profile. The illustration below shows how this works. Multi-manager investment options These investment options blend a combination of different investment management styles to create options ai at reducing investment risk and the volatility of returns. Suncorp diversified portfolios Designed for straightforward investing, these portfolios were designed in conjunction with Ibbotson Associates (Ibbotson), a leader in investments, with the aim of achieving the diversification you need in one portfolio. There s one to suit everyone no matter what your risk profile. 2. Individual investment options If you re looking for a more customised solution and want to choose your own mix of asset classes, there are 32 single sector investment options to choose from. These include the security of the Suncorp Cash Fund and Suncorp WealthSmart Term Deposits. Before making a choice, you should consider the possible return and risk of the investment options and how long you plan to keep them. In addition, you should consult your adviser to help you decide what investment strategy is right for you. You can change your investment strategy at any time by logging into your online account. You must indicate your preferred investment strategy when completing your application form. We will not be able to accept any contributions until a selection has been made. For more information about our investment options refer to the Product Guide. Fund profile for the Suncorp Lifestage Fund Investment objective Investment strategy The Suncorp Lifestage Fund aims to maximise capital growth, real capital preservation and income returns from a diversified mix of investments. The emphasis changes from capital growth to capital preservation and income as you get older. The Suncorp Lifestage Fund holds a diversified mix of growth and income investments, with an increased allocation to income investments as you get older. Each Suncorp Lifestage Fund is tailored to suit the investment needs and risk profile of investors within the specified age group. Fewer growth investments 80% (and more income investments 60% like fixed interest and cash) More growth investments, 40% such as shares and property You should read the important information about the 20% Risks of super before making a decision. Go to Risks 0% of super in the Product Guide and the Understanding Investment Risk flyer. The material relating to the Risks Your age Illustrative only of super and the Understanding Investment Risk flyer may change between the time when you read this PDS and the day when you sign the application form. You should read the important information about How we invest your money before making a decision. Go to How we invest your money in the Product Guide. The material relating to How we invest your money may change between the time when you read this PDS and the day when you sign the application form. 4 Suncorp Superannuation Proportion of growth investments 100% How we invest your money with the Suncorp Lifestage Fund We change your investment mix a s you get older 100% 80% 60% 40% 20% 0%

5 6 Fees and costs Your year of birth Standard Risk Measure How we invest your money in the Suncorp Lifestage Fund Recommended minimum time to keep the investment Strategic Asset Allocation (This shows the percentage of your money that we put into each type of investment. They add up to 100%.) Cash Income investments (%) Aus fixed interest Growth investments (%) High 10 years High 10 years High 10 years High 10 years High 10 years High 10 years High 10 years Med to high Intl fixed interest Infrastructure Total income 10 years Med 10 years Med 10 years Low to Low to Low to Low to 1934 and earlier 3 Low to 7 years years years years years Property Aus shares Intl shares Total growth This following section provides a summary of the fees you may be charged on your Suncorp WealthSmart account. You can also use it to compare fees with other super funds. DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser. 1 TO FIND OUT MORE If you d like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart. gov.au) has a super fee calculator to help you compare different fee options. 1 We re required by law to include this paragraph. Sorry, but our fees aren t negotiable. Summary of fees and costs This PDS shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Taxes, insurance fees and other costs relating to insurance are set out in the Product Guide. You should read all the information about fees and other costs because it is important to understand their impact on your investment. These percentages can vary to allow our investment manager to maintain the long-term objective of each Suncorp Lifestage Fund. To keep things simple, we ve rounded these numbers up or down to the nearest full one per cent, and where the resulting totals haven t added up to 100 per cent, we ve adjusted cash. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement 5

6 6 Fees and costs (cont) Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Type of fee 1 Amount How and when paid Investment fee 2 This depends on the investment option(s) you choose. They range from 0.00% % pa This fee is included in the daily unit price calculation. Administration Up to 1.31% pa This fee is calculated monthly on the value of fee 3 your total account balance, and is deducted monthly from your account by withdrawing units. $6.50 per month if your account balance is below $20,000 on the day this fee is deducted (super only). Buy-sell spread Up to +/-0.50% depends on the investment option(s) you choose Switching fee Exit fee Advice fees relating to all members investing in a particular MySuper product or investment option. Other fees and costs Indirect cost ratio This is charged as a monthly fee of $6.50 and is deducted by withdrawing units from your account. This cost will be reflected in the buy-sell price of the investment option(s) you choose. Please refer to the Additional explanation of fees and costs section on this page for more information 1. Other fees and costs may apply. For example, if you are a nil entry fee member. Please see the Fees and costs section in the Product Guide. 2. Investment fees are available in the Suncorp WealthSmart investment menu section of the Product Guide, and may be subject to change in the future. An investment fee does not apply to the Suncorp Cash Fund or Suncorp WealthSmart Term Deposits. 3. This fee can be negotiated with your adviser. Additional explanation of fees and costs Personal advice fees You can authorise us to pay a fee for personal advice to your financial adviser (agreed by us) and have the fee charged to the Suncorp WealthSmart account. Talk to your adviser, or refer to your adviser s Statement of Advice for details of this fee. Contribution fee You may be charged a fee of up to 4% of each contribution or transfer which is paid to your adviser. Refer to the Product Guide for more information. Other important information For insurance fees on your super account, please refer to the Insurance in your super section of this PDS. All fees in this PDS are quoted after the effect of income tax and inclusive of GST (less any available reduced input tax credit). This means the fees you see are the fees you ll actually pay. We can also introduce certain new fees or change the level of fees you pay at any time without your consent. But if we need to do this, we ll always let you know by writing to you at least 30 days before any adverse change. Administration fee discount If your account balance is between $100,000 and $250,000 you will receive an administration fee discount of 0.10% a year on that part of your account balance. A 0.50% pa discount applies to amounts in excess of $250,000. Example of fees and costs The following table gives an example of how the fees and costs for the Suncorp Lifestage Fund in Suncorp WealthSmart affect your superannuation investment over a 1 year period. You should use this table to compare this product with other super products. Example Suncorp Lifestage Fund Balance of $50,000 Investment fees 0.20% pa For every $50,000 you have invested in the Suncorp Lifestage Fund you will be charged $100 each year PLUS Administration fees PLUS Indirect costs for the Suncorp Lifestage Fund 1.31% pa 1 And, you will be charged $655 in administration fees EQUALS cost of product And, indirect costs of $0 each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $755 for the Suncorp Lifestage Fund. 1 You ll receive an administration fee discount if your account balance is $100,000 or more. You can also link multiple accounts of your own and those of family members to obtain this discount. You should read the important information about Fees and costs before making a decision. Go to Fees and costs in the Product Guide. The material relating to Fees and costs may change between the time when you read this PDS and the day when you sign the application form. 6 Suncorp Superannuation

7 7 How super is taxed 8 Insurance in your super Super can be more tax effective than putting cash in a bank savings account or investing directly in managed funds. The table below summarises the ways in which super can be taxed: On contributions received On your investment earnings On withdrawals 0% on non-concessional contributions 15% on concessional contributions 1 45% 2, 3 on excess amounts over the non-concessional contribution cap Your marginal tax rate 2 plus an excess concessional contributions charge on excess amounts over the concessional contribution cap 45% 2 on concessional contributions where a TFN is not held by the super fund 15% if your transfer contains any untaxed components 4 Up to 15% on investment earnings For lump sum withdrawals: 0% if you re age 60 or over 15% 2 on taxable components over $180,000 5 if received when you re between your preservation age and age 59 20% 2 on taxable components if you re under your preservation age For death benefits paid as a lump sum withdrawal: 0% if paid to a tax dependant 15% 2 on taxable (taxed) component paid to a non-tax dependant 30% 2 on taxable (untaxed) component paid to a non-tax dependant 1. If income exceeds $300,000 per annum, contributions tax of 30% will apply. 2. Plus Medicare levy. 3. If your non-concessional contribution exceeds the non-concessional contribution cap the contribution will be rejected. 4. Any excess over your untaxed plan cap amount (which is up to $1,315,000 for the 2013/14 financial year) is taxed at 45% plus Medicare Levy. 5. For the 2013/14 financial year. You could inadvertently become liable for additional tax if you put more money into your super in any one financial year than the contribution caps allow, so it s important to talk to your adviser before making any decisions. There s more information on the way pension accounts are taxed in the Tax section of the Product Guide. Taking out insurance cover within your super can be very cost-effective, because your insurance fees are deducted from your super account balance. This means you don t have to dip into your take-home pay, as you would if you arranged insurance cover outside super. Insurance cover options Suncorp WealthSmart offers Death only, Death & Total and Permanent Disablement (TPD) and Income Protection insurance. This cover is subject to you being under age 65 (Death & TPD and Income Protection), and being employed for more than 15 hours per week (TPD and Income Protection). Cover will start on the date you are successfully underwritten for cover. More information about the cover options is available on the next page. Applying for cover To apply for cover you must be: aged over 15 and under 65 an Australian resident, or a non-australian resident holding a valid visa. For TPD and Income Protection you must be gainfully employed on a permanent basis for at least 15 hours per week to apply for cover. To apply, please fill out an Insurance application form, which you can download from suncorp.com.au/super. Acceptance of your application depends on the outcome of an underwriting assessment by the insurer, which will require you to provide evidence of your health. Tax file numbers While you don t have to give us your tax file number (TFN), there are disadvantages in not doing so. You may be taxed more and we may not be able to accept certain contributions. For more information on this, please see the Tax file numbers (TFN) section in the Product Guide. You should read the important information about How super is taxed before making a decision. Go to Tax in the Product Guide. The material relating to How super is taxed may change between the time when you read this PDS and the day when you sign the application form. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement 7

8 8 Insurance in your super (cont) 9 How to open an account Insurance costs There are costs associated with insurance. Your insurance fees are calculated from a number of factors including the type and amount of cover, your age, occupation, gender, smoker status, and whether or not you engage in any hazardous pursuits. Your insurance fees are deducted monthly from the balance of your super account. For the rates and examples of how insurance fees are calculated, please see the Insurance premium rates guide, which is available on our website. The following types of cover are available within your Suncorp WealthSmart Personal Super account: Type of benefit payable Cover options Death cover A lump sum benefit is paid if you die (or earlier if you become terminally ill ). Fixed benefit amount Up to a maximum insured amount of $5 million for Death cover (including a maximum of $3 million for terminal illness cover). Total and Permanent Disablement (TPD) A lump sum benefit is paid if you become totally and permanently disabled. Fixed benefit amount Up to a maximum insured amount of $3 million. Income Protection A monthly benefit is paid if you become totally disabled or partially disabled. Up to 75% of your salary, plus optional super contributions of up to 10% of your salary, up to a maximum insured amount of $25,000 per month Two year or five year benefit period or until you reach age 65 30, 60 or 90 day waiting period. Opening an account is easy Your first step is to speak to your financial adviser, who can take you through the process and help you get the most from the investments, insurance and other features and benefits of a Suncorp WealthSmart account. To start your application now, please visit our website or call us. Our contact details are at the bottom of this page. What if you change your mind? You get a 19-day cooling-off period after joining Suncorp WealthSmart. If you want to close your account within that time, all you have to do is write and tell us. The cooling-off period starts when you receive your membership confirmation or five days after your account has been set up, whichever is earlier. Your feedback We d like to hear from you, including if you have any problems or complaints. We ll try to resolve your complaints quickly. You should read the important information about Insurance in your super before making a decision. Go to Insurance in your super in the Product Guide. The material relating to Insurance in your super may change between the time when you read this PDS and the day when you sign the application form. 10 How to contact us Suncorp WealthSmart GPO Box 2585, Brisbane QLD 4001 Customers and ask for Super Suncorp Financial Planners, Authorised Representatives and Independent Financial Advisers suncorpwealthsmart@suncorp.com.au suncorp.com.au/super Suncorp Portfolio Services Limited (Trustee) (ABN , AFSL , RSE Licence No L ) and Suncorp Life & Superannuation Limited (SLSL) (insurer) (ABN , AFSL ) are related bodies corporate of Suncorp-Metway Limited (Suncorp) (ABN , AFSL ). The obligations of the Trustee, and the insurer SLSL, aren t guaranteed by any other company within the Suncorp Group. Except as otherwise stated, Suncorp and its subsidiaries don t guarantee the repayment of capital invested in or the investment performance of this product. This product is not a bank deposit or other liability and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. The Trustee is the issuer of this PDS and takes responsibility for its contents. Investment option information is provided by the investment managers which includes their objectives, strategies, asset allocations, fees and buy-sell spreads. The investment managers have consented to the publication of this information in this PDS and haven t withdrawn their consent at the time of its preparation. They take no responsibility for any other information in this PDS. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension are part of the Suncorp Master Trust (Fund) (ABN , RSE Fund Registration No. R ). Applications can only be accepted from persons receiving this PDS (including electronically) within Australia. If you print an electronic copy, please ensure you print all pages of this PDS. We appreciate that privacy is important to you. Before making a decision, you should read our Privacy Statement in the Product Guide and Suncorp Group Privacy Policy to ensure that you understand how our companies may collect, use and disclose your personal information. For more information please refer to the Product Guide. We reserve the right to refuse or reject an application for membership or insurance. Insurance cover offered through Suncorp WealthSmart is provided by the insurer in a policy issued to us. This policy is a non-participating policy. As a result you don t have any right to any surplus in the statutory fund /02/14 A