Putting the energy Back into Super

THe PAnDeMIC SAW MAnY eMPLOYeeS LOOKInG AT OPTIOnS FOR GeTTInG A LITTLe BIT OF eXTRA FInAnCIAL HeLP. JOBKeePeR AnD JOBSeeKeR HeLPeD BuILD THAT BRIDGe, BuT WITH MAnY FeeLInG THe PInCH AnD A LOSS OR ReDuCTIOn In InCOMe, SOMe eMPLOYeeS MAY HAVe DIPPeD InTO THeIR SuPeR eARLY.

This may impact them at retirement. Canstar crunched the numbers for a person aged 45 with a superannuation balance of $80,000. When they withdrew $20,000, they could see $55,603* less in retirement.

As an employer, you want the best for your employees. Here are some tips on how your employees can supercharge their super.

1. Add what you can (even it is only a small amount) 3. Government co-contribution up to $500

2. Combine your super

Statistics show most of us don’t take an active role in our super, viewing retirement as something ‘too distant from now’ to be considered in current financial decisions.

The earlier money is put into super, the more an employee will have when they retire. The money employers put into super is just a start - if an employee adds a bit more, it can make a huge difference. For example, adding $20 a week over 40 years could add an extra $125,000 to an employee’s super at retirement. Remind employees that when they make super contributions, even voluntary contributions are locked away until they retire, except for certain circumstances.

To find out more, visit MoneySmart ‘Super contributions Optimiser’ at www.moneysmart.gov.au/grow-yoursuper/super-contributions-optimiser.

‘Lost super’ is a common issue for many employees. It’s easy for them to find their lost super - they can visit the energy Super website or find more information on the ATO website.

Combining their super into one fund saves employees time and money. They only have to pay one set of admin fees, have more control over their investment strategy and can more easily track their super to ensure they have enough for retirement. Before combining their superannuation, employees should consider any insurance policies with their previous superannuation fund. They may want to apply to increase their insurance with energy Super before consolidating their superannuation.

Low-income earning employees may be eligible for a co-contribution from the government. For example, if they earn less than $38,564 in this financial year and make a personal contribution of $1,000 (or more), the government will contribute the maximum amount of $500 into their super account. employees don’t need to do anything. The contribution will automatically be applied when they complete their tax return. These tips will help your employees, following what has been a tough year. even if they have taken the option of early release, there are still ways they can supercharge their super and minimise any impact on their retirement.

Damien Griggs

Manager, Employer and Education Services Energy Super www.energysuper.com.au

*Source: https://www.canstar.com.au/superannuation/risks-access-super-early/. Based on a starting gross annual income of $86,237, growing 2.1% annually, per ABS Weekly Earnings and Wage Price Index, retiring at age 67. Person’s wage is assumed to have decreased by 20% for the first two years of the simulation (so they qualify for the early access scheme) after which the person’s wage returns to their original wage. Early withdrawal amount of $20,000 for Scenario 1 is applied to balance at as $10,000 withdrawal at the start of the fourth quarter of the first year and a second $10,000 withdrawn at the start of the fourth quarter of the second year. Employer contributions are presumed taxed at 15%. SG contribution amounts per Government announced rates. Investment returns assumed to be 7.90% per APRA average 10-year annualised rate of return. Net performance deducts average fees calculated at the start of each year and based on products in Canstar’s database for the person’s age as a percentage of balance (to the nearest $20,000 up to a maximum of $140,000) to account for diminishing dollar based fees as the balance increases. Average life insurance premium of $189.34 is assumed charged at the end of each year, increasing annually by 2.5%, based on products in Canstar’s database for an average balance of $80k and age of 45 years old. End balances at retirement are shown in “today’s dollars”, i.e. they have been adjusted for inflation of 2.5%. Please note all information on income, annual superannuation fees and performance returns are used for illustrations purposes only. Actual returns and the value of your investment may fall as well as rise from year to year; this example does not take such variation into account. Past performance is not a reliable indicator of future performance.

Disclaimer: The information contained in this document is only general advice. It does not take into account your specific objectives, financial circumstances or needs. You should consider whether the information is appropriate to your specific circumstances before taking any action. If you wish to obtain a financial product as a result of the general advice, you should obtain a Product Disclosure Statement in relation to that product before taking any action. You should consider obtaining specific advice before making any decisions with respect to financial products. Information in this document is accurate as at 30 April 2021. Issued by Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439) (AFSL 336567) as the Trustee and issuer of Energy Super (ABN 33 761 363 685). If you need assistance, talk to one of our financial advisers. Any information or advice included in this message is provided by ESI Financial Services Pty Ltd (ABN 93 101 428 782) (AFSL 224952). ESI Financial Services Pty Ltd is a wholly owned entity of Energy Super.

WE PUT THE ENERGY INTO SUPER We’re the industry super fund that’s just the right size to deliver strong long term performance and personal WE PUT THE ENERGY INTO SUPER connection. We exist to benefit members and our decisions aren’t driven by the need to generate profit for shareholders. We’re the industry super fund that’s just the right size We’re big enough to matter but small enough to care about to deliver strong long term performance and personal your employees, that’s why we talk to over half of our connection. We exist to benefit members and our decisions members each year. aren’t driven by the need to generate profit for shareholders. We’re big enough to matter but small enough to care about Scan QR code to find out your employees, that’s why we talk to over half of our more members each year.

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As a proud industry super fund, we work to keep our fees low, so our profits go back to the members.

We offer short 14 day waiting periods with excellent claim rates and give access to a leading provider of income protection WHY CHOOSE US FOR YOUR STAFF? insurance.

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We truly do care, that’s why we offer a complimentary service to all members Low Fees: for their financial, physical and mental As a proud industry super fund, we work wellbeing, designed as a holistic program to help members reach retirement and make the most of their to keep our fees low, so our profits go back to the members. super.

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Personal Advice: Income Protection:

If your employees would ever like some personalised expert advice about their We offer short 14 day waiting periods with Energy Super Account over the phone they can access our Single Issue Advice service excellent claim rates and give access to at no extra cost. Or they can speak to our a leading provider of income protection Financial Advisors*. To book an appointment insurance. visit our website or call us on 1300 436 374 between 8am-6pm AEST Monday to Friday.

We truly do care, that’s why we offer a complimentary service to all members for their financial, physical and mental For help or further information, please speak to Damien Griggs on 0458 147 111 or email damien.griggs@energysuper.com.au. For enquiries from Western Australia, please contact Steve Scott on 0437 398 432 or wellbeing, designed as a holistic program to help members reach email steve.scott@energysuper.com.au retirement and make the most of their super. * Energy Super offers financial advice through ESI Financial Services (AFSL 224952), a wholly owned entity of Energy Super. Information in this document is current as at 26 April 2021. Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439) (AFSL 336567) is the Trustee and issuer of Energy Super (ABN 33 761 363 685). Financial advice is provided by ESI Financial Services Pty Ltd (ABN 93 101 428 782) (AFSL 224952), a wholly owned entity of Energy Super. Any advice contained in this document is general in nature and not specific to your particular circumstances. You should consider your financial situation before acting on the advice. You should also obtain and consider the Product Disclosure Statement (PDS). A PDS is available from energysuper.com.au or by calling 1300 436 374. While all due care and diligence has been taken in the preparation of this document, the Trustee reserves the right to correct errors or omissions.

Personal Advice:

If your employees would ever like some personalised expert advice about their Energy Super Account over the phone they can access our Single Issue Advice service at no extra cost. Or they can speak to our Financial Advisors*. To book an appointment visit our website or call us on 1300 436 374 between 8am-6pm AEST Monday to Friday.