Super Direction
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ANZ AUSTRALIAN STAFF SUPERANNUATION SCHEME SUPER RETIREMENT DIRECTION SUPER NEWSLETTER TO MEMBERS / DECEMBER 2016 PREVIOUS NEW NAMES, NEW NAME FOR... JUST FOR YOU NAME Current employees of ANZ ANZ Staff Super is changing Employee Section Section A and its associated companies the names we use for our various membership sections Current employees who were so they better describe the Employee Section C Section C members in 1996 and have not transferred to Section A sections and are more Former employees of ANZ, easily understood. Retained Benefits Personal Section so you can stay with ANZ You’ll see the new names throughout Account (RBA) Staff Super if you leave ANZ this newsletter but they’ll be introduced gradually across our publications and communications over coming months. Spouse Contribution Partners of current or Partner Section Account (SCA) former ANZ employees Current or former employees Retirement Section Account Based Pension of ANZ, so you can convert • Transition to (including Transition your super to an income retirement to Retirement Account stream when you retire or Based Pension) • Retirement income transition to retirement The data shows that at retirement, HOW YOU CAN DO YOUR PART LET’S CLOSE the median super balance for a man is You could: $107,000 and $65,000 for a woman. THE GAP • make extra contributions from your Women also live longer than men. pre-tax salary to your super (also A woman born today is expected on TOGETHER known as salary sacrificing) average to live 4.2 years longer than a ANZ is helping to close man. This means on average women • contribute lump sum or regular need more in super to cover their amounts to super after tax the super gender gap with longer lifespan. • see if your spouse can split his or her its annual additional $500 employer’s super contributions to contribution for eligible BRIDGING THE GAP your account female employees, but it’s Last year ANZ announced some great • see if you are eligible for any initiatives to help bridge the super gap. government concessions, such as the unlikely to be enough to One of these is the annual $500 employer low income super contribution and fully close the gap. What contribution for every permanent and co-contribution schemes can you do to top up your fixed term female employee active on the • consolidate your super accounts and super and avoid a shortfall payroll each January. avoid paying multiple sets of fees in retirement? • check your investment choice is appropriate for your situation If you’re eligible • contact an ANZ Staff Super financial WOMEN LIVE LONGER you’ll see $500 adviser# on 1800 000 086 for general AND RETIRE WITH LESS on your payslip or limited personal advice at no for the pay Recent figures* show the gap between extra charge. median super balances for Australian men period ending The sooner you start, the better off and women aged 55 to 64 widened by 19 January 2017. you’ll be in the long run. $28,000 to more than $70,000 between 2011/12 and 2013/14. * Australian Bureau of Statistics data released in October 2016 N E W S ? UPDATE ON INVESTING…NAVIGATING SUPER THROUGH STORMY SEAS CHANGES It’s been a volatile few months on international investment markets – book-ended by Britain’s decision to exit the The 2016 Federal European Union on 23 June and the recent Trump win in Budget contained a the US presidential election on 8 November. Markets have number of proposed had to deal with the thing they dislike the most - uncertainty. reforms to super. In September, the It’s worth remembering that it is not economic data from China and the US unusual for election results to create made markets nervous during August and Government made initial market volatility, partially due to September, investors were encouraged changes to the uncertainty around policymaking under by the US Fed’s move to delay any interest proposed reforms, a new government. But the US election rate hikes. result is unlikely to have a lasting impact including: Markets may remain volatile over the on markets. next few months. However, as the Trustee • replacing the proposed And as the aftermath of Brexit showed, Chairman noted in the last Annual Report, backdated lifetime cap even dramatic short-term responses to investors should not panic, but get used of $500,000 on non- political events can be quickly reversed. to dealing with lower-investment-return concessional contributions Post-Brexit optimism and the US Federal conditions. with a new measure to Reserve’s decision to delay interest rate reduce the existing cap from The Trustee regularly reviews it’s investment hikes soothed investor concerns and sent $180,000 (or $540,000 over strategy and objectives to ensure they are shares higher over the four months to three years) to $100,000 (or appropriate for current and expected future 31 October. $300,000 over three years); investment conditions. • stopping anyone with over Late in 2015 we reduced the investment $1.6m in super from making return objectives of our investment further non-concessional THE TRUSTEE HAS options in response to modelling that contributions; and indicated that future investment returns DECIDED TO INVEST IN THE • not proceeding with the were not expected to be as strong as in proposed measures to allow BARWON INSTITUTIONAL the recent past. HEALTHCARE PROPERTY those between ages 65 The Trustee still believes that average and 74 to make additional FUND WHICH WILL INVEST returns over the next five to ten years will super contributions without IN PROPERTIES SUCH AS be lower than the last five to ten years. meeting a work test. MEDICAL CENTRES, DAY We believe that the return objectives In late November 2016, both SURGERIES, PRIVATE should be realistic and reasonably houses of the Australian achievable so members can make parliament passed the legislation. HOSPITALS AND ALLIED informed decisions about their The changes are generally due HEALTH FACILITIES. THE investment mix. to take effect from 1 July 2017. If you’re concerned about the AUSTRALIAN HEALTHCARE Accordingly we will keep you advised impact of any proposed changes PROPERTY SECTOR of any change in expectations on your super, call an ANZ Staff going forward. OFFERS ATTRACTIVE Super financial adviser# on INVESTMENT ATTRIBUTES. While it’s important to take a long term 1800 000 086. view when thinking about your super, you should review your investment option(s) from time to time to ensure Indications that the Brexit fallout will your choice remains appropriate for you. be largely confined to Britain bolstered Remember, we’re here to help. For advice about your investment options in the 2 investor confidence following the initial shock of the UK vote. And while weak Scheme, call an ANZ Staff Super financial adviser# on 1800 000 086. 3 INVEST FOR THE LONG TERM Super is a long term investment that accumulates over your working life and needs to keep working for you in retirement, so choose a suitable investment option for your situation. Understand the risks and rewards of each investment option before making your choice. Learn about your investment options by clicking on the ‘Investments’ tab at www.anzstaffsuper.com GETTING OFF TO A and consider speaking to an ANZ Staff Super financial adviser#. GREAT START WITH MAKE SURE YOU HAVE THE RIGHT ANZ STAFF SUPER 4 INSURANCE COVER FOR YOU The insurance cover available through your super Want to get off to a great start with your is often cheaper than individual cover available super? Follow these six simple steps to help outside of super – but have you tailored your reach your super goals. cover to suit you and your family? A recent study* found that the median level of death cover taken out by working Australians meets just 61% of their basic needs and only 42% 1 BRING IT ALL TOGETHER of the amount needed to fully maintain their Do you have more than one super account? family’s standard of living. ANZ Staff Super offers If so, you could be paying multiple sets of fees. flexible insurance options, so you can adjust your Over time these fees can have a big impact cover to suit your circumstances. on your super, so you have less for when To get started, check the insurance cover on you retire. your most recent benefit statement or log in at To consolidate multiple super accounts with www.anzstaffsuper.com. For details about our ANZ Staff Super, log in to the secure section death and Total and Permanent Disablement of www.anzstaffsuper.com and select cover as well as our salary continuance insurance Contributions>Rollovers/Transfers-in or option, click on the ‘Insurance’ tab. download a Rollover form from the ‘Forms & publications’ section. 5 NOMINATE YOUR BENEFICIARIES Check your insurance cover in both funds first to Who will get your super if you die? It makes sense make sure you’ll continue to have an appropriate to tell ANZ Staff Super where you want your super level of cover. paid if something happens to you in the future. A binding nomination tells us who you nominate 2 CONTRIBUTE EXTRA to receive your super if you die and is legally How much super will you need in retirement? binding provided it remains valid and has not Will the minimum 9.5% Super Guarantee expired. A non-binding nomination provides contribution be enough? a guide for the Trustee, but it is not legally enforceable. To grow your super further, you may be able to make extra contributions from before To make or update your binding nomination, tax (salary sacrifice) or after-tax salary.