Introducing HESTA. Presented by Colleen Hogan-Manning Client Relationship Manager

Transcription

1 Introducing HESTA Presented by Colleen Hogan-Manning Client Relationship Manager

2 Information you need to know about This information is issued by H.E.S.T. Australia Limited ABN AFSL No , Trustee of Health Employees Superannuation Trust Australia ( HESTA ) ABN Copyright H.E.S.T. Australia Limited 2016 This information is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. Before making a decision about HESTA products you should read the relevant Product Disclosure Statement (call or visit hesta.com.au for a copy), and consider any relevant risks (hesta.com.au/understandingrisk). Product ratings are only one factor to be considered when making a decision. See hesta.com.au for more information. Investments may go up or down. Past performance is not a reliable indicator of future performance. The returns shown are net of indirect costs and taxes. HESTA Financial Planners are representatives of Industry Funds Financial Planning, a division of Industry Funds Services (IFS) ABN AFSL IFS are responsible for the advice given by its representatives. HESTA Superannuation Advisers and HESTA Superannuation Advice Officers are representatives of H.E.S.T. Australia Limited.

3 HESTA acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of all Lands on which we come together. At HESTA, we know that Aboriginal and Torres Strait Islander cultures enrich this nation and we pay our respects to Elders, past and present. HESTA acknowledges the important contribution Aboriginal and Torres Strait Islander peoples make in creating a strong and vibrant Australian society.

4 About HESTA $36b in assets More than 800,000 members

5 What we re about Health and community services Our members Responsible long term investing

6 What is super? Super is money that has been invested for you to use in your retirement

7 Super basics Employer Total salary Take home pay Super 9.5% of your gross pay

8 How much do I get? Current superannuation 9.5% guarantee rate % % % % %

9 So, how can you build your super balance?

10 How can you make it happen? Adding an extra $20 per week now, can make a huge difference later!

11 Growing your super comes down to what you put in and earning interest over time

12 Before-tax contributions Also known as Salary Sacrifice That so called sacrifice from your before-tax income can make a real difference later.

13 Pre-tax Less tax

14 Know your limits Contribution type Contribution limit Before-tax contributions (concessional) employer salary sacrifice self-employed $30,000 p.a. If 49* or over you can contribute $35,000 p.a. After-tax contributions (non-concessional) after-tax voluntary spouse $180,000 p.a. If under 65 can pay $540,000 in one year, then $0 for next 2 years. You must provide your tax file number (TFN). *For Individuals who are aged 49 years old or over prior I July 2016.

15 After-tax contributions It s never too late to add to your super, and it s easier than you d expect!

16 How much extra super could you get from the government? Total income for financial year (2016/17) After-tax contribution required Maximum government co-contribution $36,021 $1,000 $500 $38,000 $868 $434 $42,000 $600 $300 $46,000 $334 $167 $51,021 $0 $0

17 Do you earn $37,000 or less? You could get the low income super contribution!

18 It s never too late or too early to start building your super

19 Case Study Contribution decisions Jill, Tom & Sue Tom, Jill and Sue are all 25 years of age Each earn a gross salary of $45,000 p.a. (excluding 9.5%) $0 super balance See how different contribution decisions impact on their final super balances at age 67.

20 Case Study Extra contributions make a difference! $500,000 $483,000 $450,000 $454,000 Tom makes no additional contributions to super $400,000 $368,000 $350,000 Tom No extra contributions made $20 weekly contributions from age 25 $40 weekly contributions from age 45 Assumptions: Investment earnings of 6.50% net per year and employment is constant until age 67. Inflation of 2.5% per year and figures are in today s dollars (i.e. the final value is discounted for inflation). Figures include SG contributions of 9.5%. Calculated at 01/03/2016. This example is an illustration only and is not guaranteed. Actual outcomes may differ. Investments may go up or down.

21 Case Study Extra contributions make a difference! $500,000 $450,000 $483,000 Jill Jill contributes $20 extra week from her take $454,000 home pay over the next 42 years $400,000 $368,000 $350,000 Tom No extra contributions made $20 weekly contributions from age 25 $40 weekly contributions from age 45 Assumptions: Investment earnings of 6.50% net per year and employment is constant until age 67. Inflation of 2.5% per year and figures are in today s dollars (i.e. the final value is discounted for inflation). Figures include SG contributions of 9.5%. Calculated at 01/03/2016. This example is an illustration only and is not guaranteed. Actual outcomes may differ. Investments may go up or down.

22 Case Study Extra contributions make a difference! $500,000 $450,000 $400,000 $483,000 Jill From age 45, Sue contributes $40 extra per week from her take home pay $454,000 Sue $368,000 $350,000 Tom No extra contributions made $20 weekly contributions from age 25 $40 weekly contributions from age 45 Assumptions: Investment earnings of 6.50% net per year and employment is constant until age 67. Inflation of 2.5% per year and figures are in today s dollars (i.e. the final value is discounted for inflation). Figures include SG contributions of 9.5%. Calculated at 01/03/2016. This example is an illustration only and is not guaranteed. Actual outcomes may differ. Investments may go up or down.

23 Online tools

24 HESTA website

25 Financial advice online If you feel you need additional help after using our calculators, just answer a few simple questions to find out if online advice is the right model for you. Topics include recommendations on: your investment strategy your insurance strategy your contributions strategy

26 Money101 Improve your financial skills Topics range from: investment basics superannuation financial planning insurance

27 Keep track with the HESTA App Everything you need to stay connected to HESTA and your super is in one place! Download the free app from the Apple App Store or Google Play.

28 Contact us Monday Friday 8.30am 5.00pm local time hesta.com.au To ensure we can contact you, check that you ve given us your address.