Turn your super into a lasting income

Turn your super into a lasting income 2 We’ve built Choice Income for everyday Australians, to help your money last as long as possible by turning...
1 downloads 2 Views 1MB Size
Turn your super into a lasting income

2

We’ve built Choice Income for everyday Australians, to help your money last as long as possible by turning it into a regular income when you retire. You can have peace of mind knowing your savings are being managed by an awardwinning fund that has invested over $91 billion* on behalf of our members.

*As at 30 June 2015.

3

How an income account works for you Staying on board with AustralianSuper and keeping your money invested in a Choice Income account offers a range of benefits:

SUPER INCOME ACCOUNT

=

REGULAR INCOME

BENEFITS ✓

a regular income from your super even if you’re still working



regular payments on top of the Government Age Pension (if you receive it)



access to the rest of your money whenever you need it*



more savings, because the money in your account stays invested



the chance to pay less tax.

RETIREMENT

RETIREMENT

* Government prescribed minimums and maximums apply and an additional withdrawal fee may be charged. 4

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 1960

55

1 July 1960 – 30 June 1961

56

1 July 1961 – 30 June 1962

57

1 July 1962 – 30 June 1963

58

1 July 1963 – 30 June 1964

59

1 July 1964 or after

60

5

While you’re working You can start making your transition to retirement* as soon as you can access your super. You can either cut back on your working hours because you have an extra source of income, or take advantage of the tax-saving opportunities to speed up your rate of saving.

You only need $25K to open a Choice Income account and use it alongside your super account in one of these two ways:

Work less

OR

Save more

Benefits Use your super to top up your take-home pay. Save tax. Your super continues to grow because you’re still working.

Find out more about transition to retirement at australiansuper.com/ttr * Transition to retirement strategies can be complex and are not suitable for everyone. You should seek advice to make sure it’s right for you. 6

When you’ve retired If you’re retired, setting up your income account is quick and easy. We’ve created Ready Made so you don’t have to worry about choosing your investment and payment options. Designed to help your super last right through your retirement, Ready Made can get you off to a flying start.

You only need $50K to open an account. Either select our Ready Made option or make the choice yourself.

Ready Made

My Choice

Take it easy and leave the decisions to us.

Customise your account by choosing your own investment and payment options.



Pre-selected investment mix.



Pre-selected payment options.

?

Your investment option.

?

How much you get paid.

?

How often you get paid.

Find out more about Ready Made at australiansuper.com/ReadyMade

7

8

Keep your super working for you The money in your income account stays invested and continues to earn ongoing returns. We have investment options to suit everyone’s retirement goals. You can leave your investment choice to us or, if you’re a savvy investor, choose your own. Ready Made invests most of your money in our popular Balanced option which suits most members. It has delivered investment returns of at least 10% for the past three years*.

For a full list of our investment options, visit australiansuper.com/RetirementInvestments * Investment returns are not guaranteed. Past performance is not an indicator for future returns.

9

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 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

Income account

+

More money every fortnight

=

Find out more at australiansuper.com/AgePension

10

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. An income account can help reduce the amount of tax you pay on your retirement savings. You won’t pay any tax on your investment earnings, plus: From the age when you can access your super (see the table on page 5), you may receive a 15% discount for the tax you pay on your retirement income. Once you’ve turned 60, you won’t pay tax on your retirement income.

11

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.

12

Choice Income members pay less 1,400

$1,320

1,200

Fees $

1,000

$918 $724

800 600

$498

400 200 0

$100,000

$50,000 Account balance

Source: SuperRatings Pty Ltd’s Choice Income fee benchmarking, as at 30 June 2015.

You can compare our low fees against other funds using Chant West’s Apple Check tool at australiansuper.com/ChantWest

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.

13

14

We’ll make sure your money goes into the right hands Your 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 request, so we know who to leave your savings to.

We can pay your account as a one-off payment to your nominated dependants or Legal Personal Representative.

OR

Your super can continue to be paid as income payments to your dependants.

Dependants are people that rely on you for financial support. A Legal Personal Representative is someone who looks after your estate or will.

15

Have questions? AustralianSuper financial advisers* can give you personalised answers to your questions about Choice Income over the phone. Just call 1300 300 273 8am – 8pm AEST/AEDT weekdays.

Take the next step Thinking about the future is easier when you have all the information. You can read our Choice Income Product Disclosure Statement at australiansuper.com/ RetirementGuide And remember, we’re always here to help. Just call 1300 789 932 8am – 8pm AEST/AEDT weekdays or visit us online australiansuper.com/retirement

* The financial advice you receive will be provided under the Australian Financial Services Licence held by a third party, not by AustralianSuper Pty Ltd (AustralianSuper), and therefore will not be the responsibility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is provided. This brochure was issued in November 2015 by AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, the Trustee of AustralianSuper ABN 65 714 394 898, 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 1300 789 932. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria.

10574 11/15