True Wealth August 2016

true wealth SEPTEMBER 2016

STRONG +OUR RETURNS How we’ve met our targets

+STAYING SAFE Is your identity secure from cyber crime?

Diversify

FOR SUPER SUCCESS HOW TO MAKE THE MOST OF MARKET VOLATILITY

CONTRIBUTE A LITTLE MORE SUPER NOW, AND ENJOY A LOT MORE LIVING LATER. Topping up your super can pay big dividends. Even an extra $50 a week from the age of 35 can give you more than $170,000 extra when you retire*. If you earn over $37,000 you can get a tax saving on all funds contributed, plus ongoing compound growth on all your super savings, a lower tax rate on your super earnings, and low or no tax on your balance when you are retired and enjoying the fruits of your super savings.

* Assuming investment earnings of 6% after tax and fees for 30 years.

Issued by NGS Super Pty Limited ABN 46 003 491 487 AFSL No 233 154 the Trustee of NGS Super ABN 73 549 180 515

2890 (0816)

Talk to your employer or call the NGS Super advice line and see if contributing a little more to super now could help to secure the retirement lifestyle you really want.

Call us on 1300 133 177 or visit ngssuper.com.au

WELCOME As we continue to live in the ever-evolving digital age it becomes increasingly more important to protect yourself from identity theft both online and offline.

In this edition we talk about how to safeguard your identity from criminals and we give you some simple tips to help keep your identity safe from fraud.

One of the many benefits of NGS Super is that we’re an industry fund, meaning that all profits are returned to members, for the benefit of members. This approach allows us to keep fees low for servicing and running accounts, leaving you with more money to enjoy your retirement.

Unlike retail funds we do not charge commissions to financial planners. There are many myths about superannuation and retirement, and in this edition we shed light on some of these misconceptions.

We also learn from founding NGS Super members Colin May and his wife Kay, who certainly understand what superannuation is all about, and have solid plans to enjoy retirement as that time approaches. The May family has made great use of their NGS financial adviser to set them up for a happy retirement. We thank them for their continued loyalty.

NEWS AND NOTES

Short snippets, from tricks to keep your brain strong, to how arts makes you feel good and what’s coming up to enjoy.

DIVERSIFY FOR SUPER SUCCESS

See how NGS Super’s approach to investment lets you choose the level of risk you want in your super portfolio.

WORKING AS A TEAM

The May family joined NGS Super in its first year of life - almost 30 years ago. They talk about how their financial planner has helped them map out a happy path to retirement.

8 PROTECTING YOURSELF FROM IDENTITY THEFT

There are practical ways to make sure your personal and financial information is secure.

THE 10 BUSTING SUPER MYTHS

Do you know the truth about superannuation? We tackle six common misconceptions.

12 KICK-START A HEALTHY RETIREMENT

Retirement is the perfect time to adopt new healthy habits.

DOES YOUR 13 WHERE SUPER MONEY GO?

Learn about the NGS Super view on high returns and low costs.

Anthony Rodwell-Ball, CEO, NGS Super

www.truewealth.com.au

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THE TRUE WEALTH TEAM NGS Super Loyce Cox-Paton Senior Manager, Brand and Digital

Julia Wang Marketing and Comms Manager

Published by Hardie Grant Media

General Manager Clare Brundle

Managing Editor Tansy Harcourt

Art Director Dan Morley

Tania Lopez Campaign Marketing Manager

Cover image Getty

Publisher Alison Crocker

Sub Editor Sarah Causton

Designers Hayley Richards, Zara Cronin, Luke Atkinson

The information in True Wealth is general information only—it does not take into account your objectives, financial situation or needs. Please assess your own financial situation, read the Member Guide (PDS) for any product you may be thinking of acquiring and consider seeking professional advice before acting on this information. Past performance is not a reliable indicator of future performance.

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Combat back pain

NEWS

For those sitting at a desk throughout the day, the Australian Heart Foundation suggests taking regular breaks whether at home or in the workplace. Standing desks can help create flexible working conditions, as the adjustable height allows you to work sitting or standing.

For those on their feet, posture is important.

Make sure you are not leaning on one leg as this can cause pain to the side of your lower back and hip. In their book Back To Life: How To Unlock Your Pathway To Recovery (When Back Pain Persists), physiotherapist David Rogers and Dr Grahame Brown recommend a series of gentle back stretches, from getting on all fours and then slowly sitting back on your heels, to simple standing side bends.

WANT TO TAKE CONTROL? Our NGS Self-Managed option provides a tailored solution for members who want to take control of their own super. NGS Self-Managed is a low-cost product which takes care of all the compliance and reporting requirements that are normally associated with a self-managed super fund.

This means members can avoid expensive consulting fees and commissions – better still, it has no set‑up costs.

Members can choose from a variety of term deposits, as well as ASX 300-listed companies and exchange traded funds.

+ EMPOWERING READS Dementia is Australia’s biggest single healthcare cost and it’s likely to rise even further as the population ages. The good news is that you can do something to try and keep dementia at bay.

In Keep Your Brain Stronger for Longer, American doctor Tonia Vojkofsky – a specialist in treating Alzheimer’s and dementia – has put together a variety of exercises to challenge the full range of your cognitive functions, from memory and reasoning to language and visual-spatial skills. Exercises include number pattern recognition and choosing correct statements in multiple choice format. (Allen & Unwin, $24.99).

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NGS Financial Planning Pty Ltd (NGSFP), ABN: 89 134 620 518, is a corporate authorised representative #394909 of Mercer Financial Advice (Australia) Pty Ltd (MFA), ABN 76 153 168 293, Australian Financial Services (AFS) Licence #411766, Registrable Superannuation Entity (RSE) Licence L0000819. Source: ASFA Retirement Standard – March quarter 2016.

Got a sore back? Well, you’re not alone but there are a number of things you can do at home or at work to help fix those niggling aches.

NEWS & NOTES

Delivering strong returns

The NGS Super Diversified (MySuper) slightly down in an eventful year for default investment option returned equities in 2016. Equity markets sold 3.62 per cent to members over the off heavily in the beginning of 2016 with 2015/2016 financial year and sees NGS concerns around a downturn in China, Super positioned in the upper second then rebounded strongly with renewed quartile relative to the top 50 super funds confidence in the stability of the global rated by SuperRatings. The 2015/2016 economy, and finally ended the year with return takes NGS Super’s 10-year average the shock of Brexit. Fortunately equity return to 5.65 per cent pa which markets rebounded and is on target to meet the calmed post Brexit with performance objective US markets reaching of the consumer price all-time highs. index (CPI) + And lastly, the fixed 3 per cent after income portfolio tax and fees*. contributed to NGS RETURN The main Super’s performance FOR MEMBERS contributors to NGS over the financial Super’s performance year in an environment came from the unlisted where bond yields have sectors, which include direct now become negative for the property, infrastructure and growth sovereign bonds of many of the advanced alternatives sectors. These sectors posted economies of the world. strong returns in an environment where Going into the 2016/2017 financial year, there has been a high demand for real the team at NGS Super continues to yield and falling interest rates. pursue a diversified approach to investing Within the listed equities space, returns (see page 4 for more), balancing the risks were somewhat muted over the year. and opportunities in the market.

Listed Australian shares were slightly *Past performance is not a reliable up and listed international shares were indicator of future performance.

3.62

Images: iStock

Are your details up‑to-date?

The best way to make sure we can send you relevant updates is by ensuring your contact details are right. Update your email address and mobile phone number if necessary, so you don’t miss out on important information to help you make decisions on your retirement savings.

Visit www.ngssuper.com.au/email to ensure we can stay in touch.

We chat to Adam Youkhana, NGS Financial Planning Head of Advice What does your role involve?

My job is to make sure NGS Super members are getting the best financial planning services available.

Whether it’s a member who wants to increase their investments, or one who is preparing to retire, an NGS financial planner can help them achieve their goals.

What is the most satisfying part of your job?

I’m a people person so meeting members and helping them achieve their goals for retirement gives me great satisfaction.

What sets NGS Super apart from other funds?

The relationships we form with our members.

We are present, active and always available to help our members. This is a fund that lives and breathes its values: “your money, our members, education, our people, our partners and doing it better”.

What’s your best investment advice?

Learn from other people’s investment mistakes. You don’t have enough time in life to make them all yourself.

What is your top tip for looking after your finances?

Make sure to keep it simple and always try to save more than you spend.

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DIVERSIFY FOR

super success

Volatility is part of the experience when investing in global equity markets. Investors can tailor their super investments to reflect their own personal appetite for risk, with the help of NGS Super. By Emily Parkinson

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Plen ty of choice

NGS Super offers 13 investment options (15 for pension) running the spectrum from cash-only, in which members are subject only to variations in interest rates without exposure to equity markets, and at the other extreme, pure equities with full market exposure.

High-growth products

For instance, high-growth products like Shares Plus, with its concentrated exposure to local and international equities (45 per cent and 55 per cent, respectively) might suit a younger member who has the option of more time in the market, and therefore a greater tolerance for volatility.

Defensive options

By contrast, the NGS Super Balanced and Defensive options are designed specifically for members who want to focus on income and capital stability rather than growth.

“Identify how much risk you can bear, and choose your investment product accordingly,” says Squires.

“One of the features of these multiasset class options is they have a variety of exposures that have different risk levels and behave differently due to varying market conditions,” he says.

In frastructure

In addition to listed equities, members can get exposure to asset classes such as infrastructure, which includes investments like roads, airports and

C a sh

lia n A us tra s s tock

energy distribution, as well as unlisted commercial, industrial and retail property – all current holdings in NGS Super’s multi-asset class options.

These types of assets tend to offer stable returns and consistent income via long-contracted revenue streams, which can be attractive to defensive investors in times of market volatility.

“People don’t stop flying, people don’t stop using toll roads, kids continue to go to schools,” Squires says. However, diversifying into these

NGS Financial Planning Pty Ltd (NGSFP), ABN: 89 134 620 518, is a corporate authorised representative #394909 of Mercer Financial Advice (Australia) Pty Ltd (MFA), ABN 76 153 168 293, Australian Financial Services (AFS) Licence #411766, Registrable Superannuation Entity (RSE) Licence L0000819.

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he fear that swept equity markets in Europe, Asia and America following Brexit was a fresh reminder of the risks of equity investing; and of why strategies to diversify these risks are beneficial.

Investors responded to the Brexit vote with a sudden bout of panic selling, wiping out more than two trillion US dollars worth of value worldwide in the 24 hours following the shock result.

But events like Brexit need not drive super funds to the safe haven of cash, says Ben Squires, Senior Manager of Investments and Finance at NGS Super.

“A well-constructed investment portfolio can help offset risk, but key to getting to grips with volatility is to first decide what level of risk you are comfortable with,” says Squires.

“For instance, if you are a member that is close to retirement, investing 100 per cent in equity markets is likely to be a risky strategy as the time available to recover from marketdownturns is less,” he says. “But if you are 25, then you are likely to benefit from potentially higher returns that risky assets may produce over the longer period of investment. Members should be clear about their own needs and their investment time horizon and choose the product that best balances risk and reward over that time.”

NGS Super’s investment products span the risk-reward spectrum, giving members a choice of multi-asset growth and defensive products, and cater for a range of risk appetites.

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WE CAN HELP If you need help to define your risk profile and your investment strategy, call NGS Financial Planning on 1300 133 177.

more defensive asset classes can also mean forgoing the opportunity for higher returns possible from listed equities over the long term.

“There is a relationship between the level of risk members take and the return potential of taking that risk.”

Image: Getty

Active portfolio m anagem en t Another strategy NGS Super employs is to manage the highs and lows of fluctuating markets by way of active portfolio management. This means

IDENTIFY HOW MUCH RISK YOU CAN BEAR, AND CHOOSE YOUR INVESTMENT PRODUCT ACCORDINGLY.

ensuring asset allocations are always responsive to changing conditions.

NGS Super’s active investment style helps to manage times of volatility by spreading risk across multiple managers and asset classes. This approach differs to passive portfolio management, in which investment decisions are guided by benchmark indices, and rely on market movements for returns.

“We have a group of managers and we construct the portfolio so that the managers’ style, in aggregate, will dampen the impact of market volatility,” explains Squires.

This approach involves NGS Super investing directly with managers. Those managers then make decisions as to what securities NGS should buy and sell.

By pairing risky assets across different asset classes and geographic exposures, it is possible to seek tradeoffs and reduce the overall risk of the portfolio, explains Squires.

“For example, one manager might have higher exposure to US healthcare companies and another might remain underweight relative to the benchmark index – but will be overweight in consumer staples in Europe.”

Diversifying across asset classes and geographies makes it possible to minimise company-specific or sector-specific risk, and can help insure against single event risks, or sectors that suddenly become obsolete.

This can reduce overall volatility.

Understanding the different factors that drive the returns of each separate asset class is key to getting diversification right, says Squires.

“An airport in Australia behaves very differently than, say a toll road in the US, and a toll road in the US behaves very differently from residential real estate in India,” says Squires. “So we look to construct portfolios that have different drivers of returns.

“The benefit of diversification for our members is that it helps to defray that volatility. It won’t remove it entirely, but it will remove some of the sharpness.”

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A TEAM The Mays are looking forward to a family and travel‑filled retirement, due to some guided forward planning with NGS Super.

By Tansy Harcourt

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Photography: Yie Sandison

Working as

RETIREMENT

NGS Financial Planning Pty Ltd (NGSFP), ABN: 89 134 620 518, is a corporate authorised representative #394909 of Mercer Financial Advice (Australia) Pty Ltd (MFA), ABN 76 153 168 293, Australian Financial Services (AFS) Licence #411766, Registrable Superannuation Entity (RSE) Licence L0000819.

W

hen the May family first joined NGS Super they were junior teachers and the fledgling fund was in its first year of life. Almost 28 years later Colin has headed three major schools in Australia, Kay has become a children’s literacy specialist, and NGS Super has grown from a small group of staff into a $7 billion fund with some 100,000 members.

“Growing together” is how the Mays describe the relationship, and they couldn’t be happier with the outcome.

“We’ve been involved for a very long time, from the start,” says Colin. “I can remember when NGS Super was small and they used to visit schools to explain what they did. It was in the early stages of superannuation.”

The concept of super – the idea of investing money from your pre-tax salary during your earning years to live comfortably in retirement – was a bit of a mystery in Australia back in the 1980s, agrees Kay. “No-one knew that much about it then, but as we come closer to retirement age, we certainly do now,” laughs Kay. Retirement, when it comes, will mean more time with the family. The Mays have four children and six grandchildren, “with one more on the way,” says Kay with a smile. Once retired, they plan to travel across Australia and beyond.

“We hope that we will be able to have more time with family and friends, travel more and enjoy a comfortable lifestyle in our retirement,” says Colin. “With the help of NGS Super this seems possible given their diligence and guidance.”

It’s this diligence and guidance that makes NGS Super such a positive influence in their lives. Explaining how to build wealth for your latter years by planning ahead is important.

The Mays say their financial adviser, Maria Maganic, is key to the strength of their relationship with NGS Super. Having been recommended to them by a friend, Maria has been the Mays’ adviser for more than five years, since they started to look seriously at their retirement.

“As with most young people, we didn’t think about it much in the beginning, then we had an ‘oh my goodness, we are getting near to retirement age’ moment,” says Kay. “That’s when we turned to Maria.”

“Maria works with a white board, using a classic teaching method,” says Colin. “ Maria shows you what she is talking about, therefore making sure you understand. She is happy to go through things as often as you want.”

BENEFITS OF SOLID FINANCIAL ADVICE Colin shares how the process has helped to ensure a comfortable retirement.

What have you learned from NGS Super?

The help given to us as a couple as we move to pre-retirement stages in our careers has been greatly appreciated. Now people understand super better than they did back when we were first starting out. In mentoring younger teachers we always encourage them to begin early in preparing for their future and take advantage of the advice NGS Super provides.

Your go-to for expert advice At NGS Super we are shifting to become an advice-driven business.

One that focuses on true holistic, needs-based advice, incorporating choices into the decisionmaking process. We don’t sell products. We use a fee-for-service model. Our focus is on how we improve people’s lives. Caring about customers and the life they

lead is important to us – life choices always drive the discussions and decisions.

Trusting, understanding relationships, caring about customers' life choices – these things matter to us. We hope to provide the information our customers need to make the best life choices via roadmaps and needs‑based advice.

Call us on 1300 133 177 to make an appointment with an NGS Financial Planner.

How has NGS Super helped you both ?

As we have been involved and contributing to NGS Super for many years, we have been able to see favourable returns on our investments, particularly during the global financial crisis.

NGS Super has achieved competitive returns. It has given us confidence in the stewardship of NGS Super. We have been pleased with the support and communication from NGS Super over our time of involvement.

Do you like h aving a financial adviser?

Yes, we have had wonderful advice from our financial adviser in making the most of tax free and salary sacrificing contributions in recent years, taking full advantage of concessions and pre-retirement advantages.

As principals you can run your schools, but often you end up making sacrifices in your personal life. Maria advises us well. She will talk to us about lifestyle choices. Do we want to paint the house? Are we planning a trip? She asks us what level of risk we are prepared to have.

Which NGS Super investm en t option do you have?

After discussions with Maria, we rearranged our portfolio from a single option to a blended one, which included long, medium and short-term options. This was to manage the market and to give us more flexibility and advantage.

Is there a dream adventure planned in retirem ent?

We want to travel to Europe again and, in particular, Italy, as I was the principal of the Italian Bilingual School, and Kay worked there, too. We love any travel and in recent years we have enjoyed using our van to journey around the eastern side of Australia, particularly Tasmania. In the past we have been fortunate to have travelled to Europe, the USA, Israel, New Zealand, Fiji, Jordan, Vietnam and China.

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Protecting

YOURSELF FROM IDENTITY THEFT Practical ways to keep your personal and financial information secure. By Leo D’Angelo Fisher

I

t is often said that everyone has a double – a doppelganger. That’s a prospect most of us can live with.

Far more disturbing is the possibility that a fraudster or criminal gang can steal someone’s identity for the purpose of emptying their bank accounts, fraudulently applying for loans and maxing out credit limits – without the 8 + TRUE WEALTH

victim being any the wiser until it’s too late.

Noel Daniell, Risk Manager at NGS Super, says identity theft may sound like the stuff of science fiction, but it’s all too real.

“Identity theft is an area of great concern,” Daniell says. “We’re seeing more of it, it takes many different forms

and with technology it has become easier for criminals to strike.”

According to credit reporting agency Veda, online credit application fraud increased 12.6 per cent in 2015 and ‘identity takeover’ was the fastest growing form of credit application fraud – growing by 59 per cent over two years.

As the delivery of online financial services grows, so does the proportion of fraud occurring online. In the 2014-15 financial year, for the first time, the majority of fraudulent credit applications occurred online.

Credit providers have toughened up rules for the verification of identity, so making up a false identity has become less viable for fraudsters. Unfortunately that means appropriating somebody else’s identity to apply for credit has become a safer option for criminals.

The key to identity theft is personal information – information that sometimes is patiently collected over

PERSONAL SECURITY

How to safeguard your iden tity Keep personal information and identity documents in a secure location.

Restrict sharing personal information with others and never on social media.

Don’t click on links received from unknown sources, especially with emails and SMS. Avoid writing your passwords down; if you do, use a form of encryption. Use complex passwords on your digital and mobile devices.

THE BUILDING BLOCKS OF YOUR IDENTITY

Illustration: Jasu Hu

Full name Date of bir th s and Residential addres telephone number ls Bank account detai

Superannuation member number Credit card details Tax file number and details Medicare number rd ca the on contained tails Driver’s licence de ls tai Passpor t de e accounts Passwords to onlin

one, two or three years until the criminal has enough information to convince a financial institution or provider of goods and services they are the rightful bearer of somebody else’s identity.

Daniell urges consumers to be self‑aware of the information building blocks needed to construct an identity (see below left).

It may seem rudimentary, but a good starting point is your name, address, telephone number and date of birth.

Information such as bank account numbers, tax file numbers, passport and driver’s licence details and Medicare numbers also provide scammers with surer access to someone’s identity and, crucially, finances.

The more careful consumers are with the personal information they make available, the safer their identity.

Tips for safeguarding your identity compiled by NGS Super include: use complex passwords, don’t write them down, but if you do, encrypt them so only you can decipher them; when purchasing online use a separate credit card with a small credit limit (thus limiting your exposure) or use a payment system such as PayPal; minimise who you transact with online and only shop from trusted sources; and always shred paper documents, including envelopes, that carry personal information.

“Security really comes down to the individual. The less information you share, the better,” Daniell says. “Make them work harder to get to you.”

The less time spent online the better; when you don’t need to be connected, disconnect.

Protect digital/mobile devices with security and spyware; this also extends to your mobile phone.

Destroy your utility bills, out of date personal information and credit cards; shred the information as a safe means of controlling loss of personal information.

Geoff Stockton, a former inspector with Victoria Police and now Managing Director of Melbourne security and risk management firm PRM Group, says vigilance is essential when it comes to guarding against identity theft.

“There is a common misconception that people lose their identities when thieves go through their rubbish bins and mail boxes looking for personal documents they can use to assume your identity,” Stockton says.

“While this may occur, there is a far easier way for criminal elements to assume someone’s identity. It happens because we just give away copies of our identity documents. There are probably at least three or four times a year we give someone we don’t know a copy of our driver’s licence, passport or other personal identity documents.”

To illustrate just how easy it is, Stockton gives the example of an Adelaide car yard employee who last year was convicted of stealing the identities of 16 people to obtain $278,000 in fraudulent loans.

The employee photocopied their licences and used the information to fraudulently borrow funds to feed his online gambling addiction.

“It’s that easy and that’s why we should never give anyone copies of our identity documents because you don’t know what they are going to do with them, who has access to them, or whether they will be retained or destroyed,” he says.

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RETIREMENT

Busting

THE SUPER MYTHS Do you know the truth about superannuation?

Here we tackle six common misconceptions.

By Christine Long

The million-dollar figure is often bandied about as the figure needed for a happy retirement. For people who have nowhere near that much in super, it can seem like an unattainable goal.

The reality is, though, we all have different ideas about how much money we need to fund the lifestyle we want – both before and after we retire.

The latest data from the Retirement Standard benchmark published quarterly by the Association of Superannuation Funds of Australia (ASFA), estimates that singles need retirement savings of $545,000 and couples $640,000 if they want to enjoy a comfortable standard of living in retirement. This means being able to enjoy a broad range of leisure activities; travel domestically and occasionally overseas for holidays; buy private health insurance; have a reasonable car, good clothes and a range of electronic equipment.

Those who are happy to live a more ‘modest’ lifestyle – going on local holidays; buying affordable clothes and running an older car – won’t necessarily require as much in savings.

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MYTH 2: Consolidating your super is tim e-consum ing

If you’ve worked in various jobs and industries you may have super sitting in different places. You may even have some lost super held with the Australian Taxation Office (ATO). Super is considered lost when no money has been added to an individual’s super account for 12 months and the fund doesn’t have a current address for the member. According to the ATO there’s currently about $16 billion in lost or unclaimed super. Check out the ATO’s SuperSeeker site to see if you can claim some of the missing billions.

While it might be tempting to think that it’s safer to have your super spread across multiple accounts, it also means multiple sets of fees and more paperwork.

Consolidating super often gets thrown into the too‑hard basket because people think it will be difficult and time-consuming.

Actually, it takes a matter of minutes and you don’t even have to fill in any forms.

Simply follow the steps below: Login to your secure NGS Super Member Online account Click on “Contributions” then “Rollovers / Transfers-In” Click on the “Online rollover request” link to get started.

Images: iStock; Getty

MYTH 1: You need $1 m illion in super to retire

SOCIAL RESPONSIBILITY

NGS Financial Planning Pty Ltd (NGSFP), ABN: 89 134 620 518, is a corporate authorised representative #394909 of Mercer Financial Advice (Australia) Pty Ltd (MFA), ABN 76 153 168 293, Australian Financial Services (AFS) Licence #411766, Registrable Superannuation Entity (RSE) Licence L0000819. Source: ASFA Retirement Standard – March quarter 2016.

MYTH 3: All super funds are created equal

Investigate a little and you’ll find there are significant variations in super funds. Performance is often top-ofmind when people are comparing funds, but make sure you look well beyond one-year performance figures to longer-term performance figures over 10 years.

The range of investment options and insurance cover available may differ. Likewise, the support offered to members in the form of seminars and financial advice.

It’s also important to consider the cost side of the equation. The fees charged by super funds will have an impact on the funds you have at your disposal in retirement.

Industry super funds have lower fees on average.

Research by Roy Morgan surveying members of industry funds and retail funds indicates that members of industry funds have higher satisfaction – a result that has been consistent since the Single Source survey began in 2002.

MYTH 4: I don’t have any con trol over m y super

You do have control over how you want to invest your super.

Super funds such as NGS Super offer a broad range of investment options. If you have a longer timeframe before retirement, then you may choose a range of investment options that have a high exposure to risk, for example Australian and international shares. Otherwise, if you are close to retirement, you may choose to have a more conservative investment strategy by investing in term deposits and cash. For those who are more investment savvy, your fund may offer more sophisticated investment products – for example the NGS Super tailored investment option, NGS Self-Managed. This option gives members access to direct investments such as ASX-listed investment companies, exchange traded funds and term deposits.

If you don’t make an investment choice of your own, your fund will invest your super in a default option, which is generally a single diversified investment or in some cases a life stage investment option.

If you are unsure about which option is best suited to you, another way to take control is to see an NGS financial planner or attend a free NGS Super seminar.

WE CAN HELP Call us on 1300 133 177 to make an appointment with an NGS Financial Planner. Visit ngssuper.com.au/seminars to book a free seminar.

MYTH 5: Building adequate super requires big sacrifices

Not necessarily. Building a bigger super balance may not be as tough as it seems. Former Chief Executive of ASFA, Pauline Vamos, says the key is to start topping up your super early.

For example, if a 30-year-old puts an extra $35 each month into their super account instead of going out for a meal. Assuming it grows by 5 per cent per annum over 35 years, it will add up. “It’s the small things,” she says.

“Just cooking an extra meal at home each month could add $38,796 to your super nest egg.”

MYTH 6: Superannuation is for m y children

People may watch their children struggling to get into the property market and think that their super could be the helping hand they need.

While that sentiment is understandable, Australia’s superannuation system is designed to ensure people have money to live on in their retirement. Most people will need to use it for that purpose.

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LIFESTYLE

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ways to

KICK START A HEALTHY RETIREMENT Retirement is the perfect time to adopt new, healthy habits. By Angela Tufvesson

M

any people worry their health may deteriorate after they stop work but research has found quite the opposite: retirees are more likely to enjoy a healthier lifestyle than people who remain in the workforce.

People became more active, slept better and reduced their sitting time when they retired, mostly because they had more time to pursue healthier lifestyles, according to a study of 25,000 older Australians led by The University of Sydney.

Here are some of the most effective ways to kick-start a healthy retirement.

“In your 50s and 60s the things you’ve always known about a healthy diet generally still apply,” says Sarah Saunders, Chief Advocate at National Seniors Australia. “This includes watching sugar and fat intakes and, of course, eating in moderation.”

The 50s and 60s are a time when people often need fewer kilojoules because of reduced energy requirements, but the body still needs similar amounts of nutrients, or in some cases more, so it’s especially important to focus on nutrient-rich foods from the five food groups.

To offset the increased risk of osteoporosis with age, Saunders advises that extra serves of calciumrich foods such as yoghurt, milk and cheese may be beneficial for some people.

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Be social

Don’t forget your social life.

Replacing work colleagues with a solid social network is an important element of healthy ageing, says researcher Dr Melody Ding from The University of Sydney.

“After retirement people may feel lost because they’re used to playing certain roles at work ... so it’s very important to have an active social life and connections after retirement,” she says.

Saunders agrees: “The biggest determinant of happiness in retirement is social connectedness.

Be proactive. If you’re feeling lonely, join a club, volunteer at the local hospital or take on a new hobby.

Consider getting a pet – a dog provides companionship and gets you out on a regular walk.”

3

Lift weights

Two sessions of resistance training each week, such as lifting weights, using resistance bands or performing squats and push-ups will help you to maintain muscle mass and bone density, says Dr Elissa Burton, a researcher from the School of Physiotherapy and Exercise Science at Curtin University.

“As we age we lose strength and muscle power, so it’s really important to keep that going and the best way is through resistance training,” says Dr Burton. “It’s not a big drama at 65, but the problem is every year strength deteriorates, and at 75 all of a sudden you may find it’s more difficult. If you do it earlier you’re going to find life much easier as you age.”

Your local gym should be able to create a program to suit your needs.

For more tips on living a healthy and happy retirement, visit www.truewealth.com.au/retirement.

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+ TRUE WEALTH

Source: Retirement – A Transition to a Healthier Lifestyle? By Ding, Grunseit, Chau, Vo, Byles and Bauman. Image: Getty

1

Watch your diet

WEALTH

Where does

YOUR SUPER MONEY GO? NGS Super is passionate about seeking high returns and keeping investment costs low.

By Emily Parkinson Where does $1 go when invested with NGS Super? Well, the good news is 99 per cent of your post-tax money goes to that very thing you are building with each contribution: YOUR super.

Com pare the fees

It’s important that you understand where every dollar of your contribution goes. For example, many retail funds have hefty fees and charges that can really eat into your hard-earned dollars over time. Fees charged by retail funds are invariably for the benefit of shareholders rather than for you.

The following chart shows how a one per cent increase in fees can erode the value of a $100,000 investment over a 10-year period. The NGS Diversified option, for example, returned 5.63 per cent per annum. An equivalent fund return with a one per cent higher fee would return 4.59 per cent per annum. This equates to a 16 per cent improved relative position for the NGS member.

Keeping costs low

Because NGS Super is a not-for-profit industry fund, run for the benefit of its 100,000 members, all profits are returned to members. This ‘all-profits-to-members’ philosophy also underpins the treatment of costs, therefore fees for servicing and running accounts remain low.

In other words, every dollar in contribution from a member is used only to cover the costs of running the fund or invested to generate a return.

Over a lifetime of contributions, this feature makes an enormous difference to the bottom-line for members, says Ben Squires, Senior Manager of Investments and Finance at NGS Super. Maintaining low fees means saving members tens of thousands of dollars over decades of investing.

To find out more information about this topic, please visit www.ngssuper.com.au/investments.

N

n 06 ov 0 A 6 pr 0 Se 7 p 07 Fe b 08 Ju l0 D 8 ec 0 M 8 ay 0 O 9 ct 0 M 9 ar 1 Au 0 g 10 Ja n 1 Ju 1 n 1 N 1 ov 1 A 1 pr 1 Se 2 p 1 Fe 2 b 13 Ju l1 D 3 ec 1 M 3 ay 1 O 4 ct 1 M 4 ar 1 Au 5 g 15 Ja n 1 Ju 6 n 16

190,000.0000 180,000.0000 170,000.0000 160,000.0000 150,000.0000 140,000.0000 130,000.0000 120,000.0000 110,000.0000 100,000.0000 90,000.0000 80,000.0000 70,000.0000 60,000.0000 50,000.0000 40,000.0000 Ju

Illustration: Kev Gahan

DIVERSIFIED OPTION 10-YEAR GROWTH OF $100,000

Diversified option

Diversified option +1% pa extra fee

TRUE WEALTH

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THE MORE YOU KNOW ABOUT SUPER, THE MORE IT CAN WORK FOR YOU. We want you to understand all aspects of super, at every stage of your wealth building journey. Our seminar series is a relaxed and informative way to learn more and discuss the issues and ideas most relevant to you. It’s free and runs throughout the year in every state.

Key subjects include: • NGS Open Day. Topics typically include economic and investment updates, wealth accumulation, transition to retirement strategies, Age Pension entitlements.

• Transition to retirement strategies.

• Centrelink and Retirement.

• Retirement Planning Workshop.

Issued by NGS Super Pty Limited ABN 46 003 491 487 AFSL No 233 154 the Trustee of NGS Super ABN 73 549 180 515

2889 (0816)

Call us on 1300 133 177 or visit ngssuper.com.au/seminars to book any free seminar that suits your needs.