Turn your super into a lasting income. with Choice Income

Transcription

1 Turn your super into a lasting income with Choice Income July

2 2

3 More than 2.2 million Australians trust us to look after $132 billion * of their retirement savings. With our history of strong long-term returns, our low fees and member-first approach, we can help you achieve your best possible retirement. *As at 31 March

4 4

5 Why Choice Income? We want you to enjoy your retirement, not worry about where your money will come from. That s why we created our low-cost retirement income product, to help you control how long your savings last. Keeping your money invested in a Choice Income account offers a range of benefits. $ $ CHOICE INCOME $ Benefits: turn your super into a regular income receive more savings, because the money in your account stays invested your investment earnings are tax-free sweeten your retirement with a Balance Booster (if you re eligible) access additional money whenever you need it* receive regular payments on top of the Government Age Pension (if you receive it) your income payments are generally tax-free from age 60. * Government prescribed minimums apply and an additional withdrawal fee may be charged. 5

6 When you can get started You can start enjoying the benefits of Choice Income as soon as you reach your preservation age: If you were born You can access your super at Before 1 July July June July June July June July June July 1964 or after 60 6

7 7

8 How does Choice Income work? Your Choice Income account will provide you a regular income and you can set it up in a way that suits you. But your money isn t locked away. You can withdraw extra money to pay for bills, holidays or other big ticket items*. Any positive investment returns Super account Choice Income account Use money from your super account to open a Choice Income account Income payments Fees and taxes Any negative investment returns * A $35 withdrawal fee applies to additional withdrawals. 8

9 Keep your super working for you Keeping your money invested once you re retired helps you control how long your savings last. You can have peace of mind knowing that AustralianSuper has a history of strong long-term returns. We have investment options to suit everyone s retirement goals. You can leave your investment choice to us by using our Smart Default option or, if you re a savvy investor, choose your own % pa Average annual 5 year rate of return for the Balanced option* * Returns as at 31 March Investment returns aren't guaranteed. Past performance isn't a reliable indicator of future returns. 9

10 Top up the Government Age Pension You can apply for the Government Age Pension even if you have money in your super. You can use payments from your Choice Income account to top up any Government Age Pension payments you re eligible for, giving you more money when you retire. The extra income leaves you more to spend on everyday expenses like groceries and bills, or whatever else you re saving for. $ $ $ Government Age Pension Choice Income account More money every fortnight Find out more at australiansuper.com/agepension 10

11 Enjoy the tax savings You ve paid plenty of tax over the years, so you deserve to pay as little as possible from now on. A Choice Income account may help reduce the amount of tax you pay on your retirement savings. There s no tax on your investment earnings. Once you ve turned 60, you won t pay tax on your retirement income. Before you turn 60, you may receive a 15% offset for the tax you pay on your retirement income. 11

12 Boost your balance for a sweeter retirement Retirement is so close you can taste it, so how about a cherry on top to make it even sweeter? If you re already with AustralianSuper, you could be eligible to receive an instant boost to your retirement balance when you move to Choice Income. It s called Balance Booster. The amount you receive will vary depending on a few things, including your balance and investment options. 12

13 Example Balance Booster: If you have $200,000 invested in the Balanced investment option in your AustralianSuper super or TTR Income account for three full years plus the current financial year, and you move it to Choice Income, you d receive a Balance Booster of approximately $1,200*. Super account $200,000 for 3+ years Choice Income account Balance Booster $1,200 Use our online tool to estimate your Balance Booster. Head to australiansuper.com/balancebooster * Based on the current Balance Booster rate as at 2 July Terms and conditions apply. See australiansuper.com/balancebooster 13

14 14

15 Low fees, more money Our fees are low because we don t pay commissions to advisers or give profits to shareholders. Most other funds charge higher fees that can really add up. Our admin fee is only $1.50 a week, plus 0.11% of your account balance each year (up to a maximum of $750). Our investment fees are also competitive and there s no cost to set up your account. Our fees are lower than the average income account AustralianSuper $1,413 Average account $777 $938 $508 Account balance $50,000 $100,000 Source: SuperRatings Pty Ltd s Choice Income fee benchmarking, as at 31 March Assumptions: $50,000 and $100,000 accounts invested in the Balanced or most comparable option. It takes into account administration, investment, performance and any member fees levied, account size rebates and fee tiering that may apply. The fee savings shown compare Choice Income with the industry average. Fees may change in the future. This source is not guaranteed to be accurate or complete. The full analysis provided by SuperRatings compared the fees of approximately 168 retirement income accounts (from not for profit funds, retail master trusts, and the industry as a whole). It has been prepared for the purpose of providing general advice only and has not considered your objectives, financial situation or needs. Go to superratings.com.au for information about SuperRatings. SuperRatings Pty Ltd. 15

16 Take it easy Setting up your account is easy with Smart Default. Leave the decisions to us now, but change your options later if you need to. Smart Default will turn your super into a lasting income that can last up to 20 years or more. Your payment and investment options are modelled and managed by a trusted team of investment experts. Setting up with Smart Default means: $ $ You re invested in 12% Cash and 88% Balanced. $ % You receive 6% of your balance each year*. You get paid every two weeks. Your income will be drawn from your Cash option first, until the balance in Cash reaches $0. Your income is then taken from your Balanced option. * A higher percentage will apply if you are over age

17 17

18 Flexible payments If you set up your account with Smart Default, your payments will be pre-selected, but you can change them at any time. If you prefer to choose your own payments, you can: & Choose how much you ll be paid Tell us how much income you want to receive and we ll pay it to your bank account. You can choose: the minimum payment (set by the Government), or a specific amount. Choose how often you ll be paid You can receive your income payments: every two weeks once a month once every three months twice a year, or once a year. You can check our payment calendar at australiansuper.com/paymentcalendar With Choice Income it s easy to manage your account online, on the mobile app or over the phone. 18

19 Investment options The right investment option can make a big difference to how long your savings last. Setting up with Smart Default means you leave the investment decisions to the experts. You can also choose your own options if you want to. Option 1: PreMixed Option 2: DIY Mix Option 3: Member Direct Hands on level: Low Hands on level: Medium Hands on level: High PreMixed options are diversified options that invest across different combinations of asset classes such as shares, property, infrastructure, fixed interest and cash. These options are managed by our investment experts on a daily basis. Our popular Balanced option suits most members. DIY Mix options are single asset class portfolios. You choose how much you want to invest in each or a mix that can also include one or more PreMixed options. Use Member Direct to invest in a range of listed securities, including shares in the S&P/ASX 300 index, exchange traded funds (ETF s) and term deposits. 19

20 20

21 We ll make sure your money goes into the right hands Your Choice Income account is designed to last right through your retirement, so some of your savings may even outlive you. If that happens, we ll make sure what s left in your account goes where you wanted it to. All you have to do is make a binding nomination or reversionary nomination request. $ Binding nomination We can pay your account as a one-off payment to your nominated dependants or Legal Personal Representative. OR Reversionary nomination Your retirement income can continue to be paid as income payments to your dependants. You can change your binding nomination at any time. Dependants are people that rely on you for financial support. A Legal Personal Representative is someone who looks after your estate or will. 21

22 Want to know more? When it comes to retirement, a little bit of learning can go a long way. Budget If you re still in planning mode, you might want to check out our Retirement Planning Seminar. You ll learn about: how to set and achieve your retirement savings goals claiming the Government Age Pension how you can build your super while working, and how you could reduce your working hours and keep the same take-home pay. Once you re a Choice Income member, you re invited to our free Choice Income member seminars. We ll cover topics like: how your investment is performing Government budget changes and how they might affect you, and how to get the most out of your retirement lifestyle. Register for a seminar at australiansuper.com/seminars 22

23 23

24 Take advantage of the options available to you In most cases, you can pay for financial advice about your super using money from your super. Financial decisions can be complicated, so it s important to talk to an adviser before making a decision. You can access basic information for free. As the complexity of advice increases, so does the cost. You can also ask for a Statement of Advice based on your personal situation, which explains how you can put your plan into action. 24

25 306 Online Calculators australiansuper.com/ calculators How it works Our calculators let you use your own details to explore different financial scenarios, and give you information to help you plan your future. How much it costs Free. Over-the-phone advice* Call and ask to speak with a financial adviser. How it works Our financial advisers can speak with you over the phone to help you with general questions about retirement income such as: how it works if you re eligible investment options and more. How much it costs There may be a cost to this service, if a Statement of Advice is given, which will be discussed with you prior to advice being given, and this fee can be deducted from your super account. Meet with a financial adviser* Call to make an appointment. How it works A financial adviser can speak with you face-to-face about more complex financial issues, such as your retirement needs and goals. Your first meeting will last up to 90 minutes, and an information pack will be sent to you prior to your appointment. How much it costs The first meeting is free for AustralianSuper members. If necessary, a financial plan can be provided on a nocommission, fee-forservice basis. A fee is negotiated between you and your financial adviser, but you may be able to have this fee deducted from your super account; conditions apply. * The financial advice given to you will be provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd (AustralianSuper) and therefore is not the responsilbility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is provided. 25

26 I have peace of mind. I check my balance regularly and I am very happy. Chrisoula, Choice Income member 26

27 Getting started You only need $50,000 to open an account. To get started, just follow these simple steps: Join 1. Go to australiansuper.com/join or use the application form at the back of the Choice Income Product Disclosure Statement. 2. Complete your personal details and step through the online form at your own pace. You can save the application and come back to it later if you need to. $ $ $ 3. You ll start to receive a regular income as soon as we ve processed your application. You can find the Choice Income Product Disclosure Statement at australiansuper.com/retirementguide You can only move a maximum $1.6 million combined into any retirement accounts you have, including defined benefits. There are special rules for certain disability and structured settlements that enable the $1.6 million cap to be exceeded. 27

28 Have questions? Call am 8pm AEST/AEDT weekdays Visit australiansuper.com/retirement This brochure was issued in July 2018 by AustralianSuper Pty Ltd ABN AFSL , the Trustee of AustralianSuper ABN , and may contain general financial advice that does not take into account your personal objectives, situation or needs. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. Before making a decision about AustralianSuper, consider your financial requirements and read the Product Disclosure Statement, available at australiansuper.com/retirementguide or by calling SuperRatings does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria /18 ISS5