Telstra Super Pty Ltd ABN 86 007 422 522
Telstra Super Pty Ltd ABN 86 007 422 522 APRIL 2014 VOLUME 18 ISSUE 1
Building a better future How we are helping you achieve your retirement dreams
movingforward April 2014
IN THIS ISSUE: In his own words: Chris Davies, our new CEO + Telstra Super: the story so far + Financial planning: the basics + What’s your retirement age? + Some recent changes from your super fund
In his own words Chris Davies, our new CEO
We welcomed Chris Davies to Telstra Super as our new CEO in October 2013 when he joined us from UniSuper, where he was the Executive Manager of Member and Employer Solutions. Having worked in the superannuation industry since he finished university, Chris brings a wealth of knowledge and experience to the role, but what else do you want to know about him? Here, in his own words, Chris tells us a little more about himself, his experience in the super industry and his thoughts on leading Telstra Super through its next phase of evolution.
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In my own words Over the last 30 years I’ve worked in many areas of superannuation, in a variety of organisations, and have seen considerable industry change. I’ve spent a lot of my time concentrating on combining the right products and features to meet member needs, from design to delivery. I wanted to work with Telstra Super because it’s a hugely respected fund with a strong, proud history and is an industry leader in terms of member focus, investments and product development. Telstra Super also encapsulates experience and passion; I was excited about leading such a great fund at a time of emerging technology and product and service change. I feel like I’ve come in at a good time! I’m passionate about my family, education, and our industry. I have four kids, with two still at university, one a graduate working in health care and one in the Army learning to be a helicopter pilot. I value education, training and personal development, not just for my own family but for our staff and members as well. I am committed to the super industry – it does good things for people, and that’s an ethos I’m passionate about. I believe our work is really meaningful in helping our members build and live the retirement of their dreams, no matter how simple or aspirational they may be. movingforward
“We are excited and motivated about Telstra Super’s future; hand on heart, we believe that our members are better off with us, and this drives us forward.” A challenging industry
Telstra Super: where to next?
When we talk about superannuation, we are potentially talking about someone’s entire life savings. One challenge we face is that the industry will always be under review, both politically and socially, and because of this, we have to keep an eye on the future. Super is a serious business and I can especially relate to the baby boomer generation saving for the transition to retirement, needing professional advice, support and guidance. Our education seminars and financial planning are a couple of the critical things we do for our members. I’ve worked closely with financial planners over many years and understand the excellent value they create for their clients.
Since starting at Telstra Super, I have been working with the Board and senior management to further develop our purpose and mission. We will work towards aligning the objectives of the fund with the needs of our members and the Telstra Group of companies. We’re excited and motivated about Telstra Super’s future; most importantly, hand on heart, we believe that our members are better off with us, and this drives us forward.
Another challenge is the idea that young people are completely disengaged. When people say this I disagree, as I believe with the right message and offer they can become engaged. My own children, who have only been working for a couple of years, are already building meaningful super balances. The activity of our younger members also indicates an interest that we need to support and foster; using online tools and social media to engage younger members has just commenced, but will lead to a better understanding of the fund.
April 2014
There are a few themes that I see becoming more important in the future, such as the post-retirement phase; with life expectancy increasing, the number of people entering this phase is higher than previously experienced. These members will stay with us through their retirement for longer periods and expect ongoing support and services throughout their retirement years. Unsurprisingly, there will also be a focus on our online capabilities; more transactions, real-time changes, integration with other services to add value and save money. We will also focus on the ‘voice of the member’ to ensure we are providing the right services and information to be responsive to evolving needs. Helping our members within a not-for-profit environment enables us to focus on our member’s needs. www.telstrasuper.com.au
I recognise the high level of trust our members have in us and this is important to the entire fund. Onwards and upwards Telstra Super is on the cusp of an exciting period in our history. We have the strong support of the Board and Telstra, and there are lots of great things we have done and can continue to do for our members’ benefit. Our members are part of something special; they can look forward to an exciting future, where we can continue to work hard for them and provide a safe place for their money. I look forward to meeting as many of you as possible and sharing our vision with you.
Do you have any feedback? We’d love to hear from you. 1300 033 166 8.00am to 5.30pm (Melbourne Time) Monday to Friday Web www.telstrasuper.com.au/feedback
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We love working with members to help them reach their retirement dreams and we are proud of what we have achieved for you; important milestones, innovative and exciting products and services, and a range of awards and ratings. As we look forward to an exciting future, take a quick look at how far we have come together*…
Telstra Super: the story so far
Super of the Year 2014 & 2012 SuperRatings†
Over 100,000 members building their retirement dreams with us
Helping you achieve your retirement dreams The comfort of a strong super fund
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8
eligible investment options have achieved
above average returns over a 10 year period†
5 of our investment options are ranked in the
top 10 performing funds over a 10 year period† in assets
27,500 members have received advice from Telstra Super Financial Planning
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Australia’s largest corporate super fund
* as at 31 January 2014 † SuperRatings, www.superratings.com.au as at February 2014. Past performance is not a reliable indicator of future performance. ‡ A Chant West rating sums up their overall view on the merits of a particular fund relative to industry best practice. Funds are awarded a rating from 5 Apples (the highest) to 1 Apple (the lowest). Find out more at www.chantwest.com.au
movingforward
5 out of 5 apples for Super and Pension Chant West ratings 2014‡
Access to awardwinning benefits and services Introduced:
Financial planning: the basics You make financial decisions every day, from deciding whether to buy lunch to choosing the best way to manage your income. But with bigger decisions like planning for your retirement, it can be harder to know where to start. An Adviser can help you prepare a plan to reach your financial goals, but do you know what it involves? Financial planning is where a qualified investment professional provides you with financial advice to help you develop a strategy tailored for you.
Direct Access
in 2013 giving you more control and freedom
Diversified Income
How does it work? These six steps show what you can expect when seeing an Adviser:
in 2012
Step 1
Defensive Growth
Defining the advice (‘scope of engagement’): discuss the process and any costs, get to know your Adviser and ask any initial questions you may have, and agree on the topics the advice will focus on.
in 2010
Step 2 I dentifying your goals: you work with the planner to identify your short and long term goals, and determine if they are achievable.
Average balance of over $127,000 for our accumulation members
Step 3 Assessing your financial situation: what is your income? What do you own? What do you owe? Do you have any insurance? Step 4 Preparing your financial plan: your Adviser recommends suitable strategies, products and services, based on your best interests. Step 5
7 year Platinum Performance 2007-2014 SuperRatings†
4,993 members
enjoying quality health cover at a lower cost thanks to our alliance with leading health fund, HCF.
If you would like more information on the fund, visit www.telstrasuper.com.au April 2014
Implementing the recommendations: putting the plan into action!
www.telstrasuper.com.au
Step 6 Reviewing the plan: things change, so a regular review of the plan will help you stay on track. Don’t wait! You can book an appointment with Telstra Super Financial Planning by calling 1300 033 166 or visiting www.telstrasuper.com.au/advice
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What’s your retirement age?
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Working out the right age or time to leave work behind often involves a bit of homework to help ensure you’re financially able to live the sort of lifestyle you expect.
1. Have an age when you think you would like to retire
2. Decide what sort of retirement you want
Choosing when to retire is rarely as simple as just picking a date. In most cases, you will need to consider:
To figure out your post-retirement income needs, consider the sort of retirement you would like and how much this lifestyle will cost. As a general rule you’ll need between 60% and 80% of your final annual salary to maintain your current lifestyle in retirement.
We’ve listed some factors you may wish to take into account before starting to plan your retirement party.
Can your financial plan sustain your retirement if you live well into your golden years?
• when you would like to retire • when you can afford to retire • your life expectancy.
You can estimate your annual costs and projected super balance by using our Budget Planner and Telstra Super Simulator on the ‘Tools + Forms’ section of our website.
movingforward
Dreaming of retirement? 3. Whether you may be eligible for Government assistance Your eligibility age for the Pension depends on your date of birth, and is currently: • 64 and a half for women born before 1 January 1949 • 65 for women born between 1 January 1949 and 30 June 1952 • 65 for men born before 1 July 1952 Residence requirements also apply. The amount of Government assistance you could receive will depend on your personal circumstances. For more information call us, or visit the Department of Human Services website and search ‘payments for older Australians’.
When you picture your dream retirement, is it filled with travel to exotic places, spending carefree days with your loved ones and having the financial security to live life as you please? If the stories submitted to our Retirement Dreams website are any indication, you’re not alone. “My ambitions are simple. I’d like to catch up with friends from around Australia, spoil the grandkids whenever I can and travel Australia and overseas a few times doing volunteer work.” Mary “Retirement is about enjoying your well-earned break. Spending time with those you care about and not worrying too much about your finances.” David
Get inspired Our Retirement Dreams website lets you create your very own inspiration board for retirement, using images to paint a picture of all those things you’ve said you’ll get to ‘one day’. Even better, we can then show how close you may be to making these dreams a reality.
4. Ability to ease into retirement If you are approaching the end of your working life you may benefit from a Transition to Retirement strategy, which can allow you to heavily salary sacrifice into super while also receiving tax-effective income payments from a retirement income stream. If you are aged 55 or over and still working, you may wish to consider the advantages of Telstra Super RetireAccess®, a flexible account-based income stream designed to help maintain your income, reduce your overall tax bill and increase your super savings so you can ease into retirement.
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Select or upload images that represent your dream retirement
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Use our handy calculator to see how close you may be to achieving your goals
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Find out what steps you may need to take to bridge the gap between where your finances are, and where you’d like them to be.
Take charge today If you are concerned about the size of your expected super benefit, there are a number of ways to help maximise your balance at retirement; go to www.telstrasuper.com.au/Life_changes and select ‘Planning my retirement’ for more information.
It’s never too early (or too late!) to start planning how to achieve your goals. www.retirementdreams.com.au
® is a registered trademark in Australia of Telstra Corporation Limited.
April 2014
www.telstrasuper.com.au
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Some recent changes from your super fund Diversified investment option review As a result of Telstra Super’s recent investment review, some changes were made to the asset allocations and ranges of our diversified options. Telstra Super reviews the asset types and allocation ranges for our diversified investment options on a regular basis. During the most recent review, we deemed it appropriate that the Defensive Growth investment option diversify to include ‘international equities’, in addition to ‘international fixed interest’ in which it already invests.
Changes to our Privacy Policy Changes were also made to some of the existing asset allocations and ranges for our Growth, MySuper Growth, Balanced, MySuper Balanced and Diversified Income options. The split of growth and defensive assets for each of these options remains the same. For more details, please refer to the Investment Guide or visit the Investment options section of our website.
Protecting your personal information is important to us, and there have recently been some changes to the Privacy Act 1988 which has required us to update our Privacy Policy and Privacy Collection Statement. These changes took effect from 12 March 2014. For more information about our privacy policy go to www.telstrasuper.com.au/privacy As part of this new legislation you are not required to do anything.
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Visit
1300 033 166
www.telstrasuper.com.au
Telstra Super Member Centre Foyer, 242 Exhibition Street Melbourne VIC 3000
8.00am to 5.30pm (Melbourne time) Monday to Friday
This magazine has been prepared by Telstra Super Pty Ltd, ABN 86 007 422 522, AFSL 236709, the trustee of the Telstra Superannuation Scheme (Telstra Super), ABN 85 502 108 833. PO Box 14309 MELBOURNE VIC 8001, Telephone 1300 033 166 © Telstra Super Pty Ltd, April 2014 The information contained in this publication is correct as at April 2014 and may change in the future. This information is general advice only and does not take into account your individual objectives, financial situation or needs. Before acting on any advice you should assess whether it is appropriate for you and consider talking to a financial adviser. Before making any decision about acquiring any product, you should obtain and review its product disclosure statement by calling 1300 033 166 or visiting www.telstrasuper.com.au. Telstra Super Pty Ltd does not recommend that any member make a decision concerning superannuation arrangements based solely on this publication. References in this document to Telstra Super Financial Planning are references to Telstra Super Financial Planning Pty Ltd (ABN 74 097 777 725). Telstra Super Financial Planning Pty Ltd is a legal entity separate to Telstra Super Pty Ltd. Telstra Super Financial Planning Pty Ltd is a licensed financial adviser (AFSL 218705) and is able to provide financial advice about Telstra Super products to members of Telstra Super. Telstra Super Pty Ltd does not endorse or accept responsibility for the information or advice provided by Telstra Super Financial Planning Pty Ltd. The investment returns from any Telstra Super product are not guaranteed. ® is a trademark in Australia of the Telstra Corporation Limited.