Telstra Super Pty Ltd ABN 86 007 422 522
OCTOBER 2016
Investing for the life you want How much is enough for retirement? It’s one of the most common questions we get asked at Telstra Super, and the answer varies for every member. Here we explore what some of the industry guidelines for retirement living standards include. Once you’ve worked out what sort of lifestyle you want to enjoy, the key is planning your long-term investment strategies to make the most of your nest egg. A great place to start is to check out the retirement standards outlined by the industry body Association of Superannuation Funds of Australia (ASFA). This handy budgeting guide can give you a ballpark figure on how much you may need for a modest or more comfortable lifestyle in retirement. According to the ASFA standards, a “modest” retirement lifestyle means having slightly more than the Age Pension, but still only enough to afford the basics. It would require $34,064 in income a year for a couple.[1] A “comfortable” retirement lifestyle allows retirees to enjoy a range of leisure and recreational activities, and have a good standard of living. It would require $58,922 a year in income a year for a couple.[1] To support that level of income, ASFA says a couple would need a combined $640,000 saved in their super when they retire.
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Some of the “extras” you may be able to afford with a “comfortable” retirement include: • private health insurance – top level of cover • domestic and occasional international travel • recreation – social/sporting club membership and regular dining out • reasonable car and good clothing • household goods and services – internet, air conditioning, home alarm and pest inspections. Both retirement standards assume that the couple own their own home and are fairly healthy. Choosing your investments Investment returns can have a major impact on your savings. There’s a trade off when considering higher investment returns, which is the higher risk of negative returns in some years. Younger Telstra Super members are more likely to opt for a Growth investment option, which has a strong bias towards growth assets such as stocks and property. But this option also carries a higher level of risk of negative annual returns during a 20 year period.
http://www.superannuation.asn.au/resources/retirement-standard March quarter 2016.
With decades to retirement, losses in these down years can be recovered over time. As members move closer to retirement, it’s prudent to move into a more conservative option that maintains some growth, with a lower risk of capital loss. Telstra Super’s Conservative option has a bias towards defensive assets, such as cash and bonds, to minimise short-term fluctuations. We also offer a Defensive Growth option, for members who want moderate growth with greater security. This option is designed to give more flexibility for members who might be looking to access their superannuation in the short or medium-term and want to continue participating in capital growth. We’re here to help Telstra Super Financial Planning can provide advice on a range of topics, including your investment options, and help you work out what options might suit you. There’s no additional charge for our phone based service as this is included in your Telstra Super membership. Call us on 1300 033 166.
More than just advice Telstra Super Financial Planning’s advice service can help you reach your financial goals, wherever you are in your financial journey.
Financial advice can not only help you manage your wealth but also can make you feel more confident and in control at retirement compared to people who don’t receive advice. The right kind of financial advice can make a big difference to your future. Simple phone advice included in the cost of your membership As a not-for-profit fund, our goal is to help you achieve a financially secure future which is why we offer you access to general and specific advice about your personal Telstra Super account over the phone at no additional cost. We can help you optimise your super, choose investment options and review your insurance so that your super is working hard for you and you don’t pay anything extra for this service.
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Need more comprehensive advice? If you need more complex advice, you have access to the Telstra Super Financial Planning team. We can help you grow your wealth inside and outside of super, discuss your cash flow and debt situation and help you meet your retirement goals. We provide comprehensive, low cost, financial advice on a range of topics that can help you maximise your savings throughout your life stages. We work only in your best interests Our Advisers operate on a fee-forservice basis and don’t accept or receive commissions. This means you pay for advice that’s based on and tailored to your individual objectives, financial situation and needs. The first meeting with an adviser is obligation free and gives you the opportunity to decide whether you would like to proceed with our advice or not.
More complex advice topics may include: • building long-term wealth • insurance outside super • preparing for retirement • understanding Age Pension entitlements • managing retirement income. We’re here to help You’ve just received your latest statement. Are you happy with how your super is tracking? If you’ve been thinking about getting your super sorted but weren’t sure what to do first, give us a call. Take advantage of the advice services available to you as a Telstra Super member. It’s only the cost of a local call to get started. Simply call 1300 033 166 to begin your journey.
Every little bit helps Giving your super a little extra push now can make a big difference later to your balance.
Nearly half the Australians due to retire over the next four decades won’t have enough money to live comfortably in retirement.^ Don’t give up the things you enjoy in life. Make small, regular contributions into your super so you will have enough! By contributing as little as $70 per week into your account, you could be $100,995* richer when you retire. If you can’t contribute $70 a week then $40, $20 or even $10 can make a difference! Why should you consider topping up your super? • Pay less tax – the tax benefits of contributing to your super makes it worthwhile. Salary sacrificing (contributing before you’re taxed) reduces your taxable income, meaning you can top up your super while seeing little difference in your take home pay.
• Catch up your super – taking long career breaks to travel, study or start a family (especially for women) can have detrimental effects on your super balance. Contributing a little extra per week leading up to and after taking time off can help bridge the financial gap you may face later in life. Topping up is easy 1. Pre-tax contributions – If you’re working, speak to your payroll area to set up ongoing contributions into your Telstra Super account. 2. Post-tax contributions – You can make contributions from your post-tax salary by BPAY or cheque.
Want some help? If you want to set up contributions but you’re not sure which kind or how much to contribute a Telstra Super Financial Planning Adviser can work through your options with you over the phone. For the cost of a local call you can get your super sorted. Give us a call on 1300 033 166 to get started. ^ I ndustry Super Australia’s Off Target - Tax Discussion Paper Submission June 2015 * Example done using the Telstra Super Simulator based on a 40 year old earning $100,000 a year. Assumes ongoing Superannuation Guarantee rate of 9.5% increasing to 12% by 1 July 2025, investment returns based on MySuper Growth lifecycle options and inflation rate of 2.5% pa. Results are discounted to today’s dollars. Contributions are made pre-tax and are indexed to inflation. Assumes administration and insurance fees of $196 p.a. Note that the Simulator imposes some limits on the fixed assumptions but the actual experience could be outside these ranges (e.g. investment returns may be negative in some years).
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If they’re family to you, then they’re family to us! Did you know that membership of Telstra Super extends to every eligible member of your family? This means more people can now enjoy the benefits of belonging to Australia’s largest corporate super fund. Your family is important to us and we want you to know that we’re here to guide each generation as they move through their different life cycles and into retirement. By joining Telstra Super, your family members will have access to a broad range of products and services. Here are just a few benefits on offer:
market yourself, then we have an investment platform that allows that too!
Investment strategies and products for everyone
Financial Advice that covers it all
Our continuous high-performing investment returns and quality products have seen Telstra Super win some of the highest ranked industry awards. And if you want to try your hand at investing in the stock
Comprehensive insurance options We have you and your family protected! We offer our members access to flexible and competitive insurance options covering death, Total & Permanent Disablement (TPD) and income protection insurance.
Telstra Super Financial Planning’s experienced Advisers can provide advice to help manage, protect and build your wealth, not just your super! We also offer phone based advice that’s included in your membership at no additional charge.
Declutter your life with less paperwork Don’t wait around for your next statement to arrive, register today to receive your statements online, wherever you are, 24/7. Register at telstrasuper.com.au/subscribe
Free seminars and online publications We hold seminars and webinars around Australia throughout the year, at no additional cost to you and your guests. Our speakers are industry experts who cover topics relevant to everyone. We’re here to help Whether they’re ready to retire or just starting to build their super savings, we have a something to suit your family members. To find out more about joining family members give us a call on 1300 033 166 between 8.00am and 5.30pm (Melbourne time) Monday to Friday.
Call 1300 033 166 8.00am to 5.30pm (Melbourne time) Monday to Friday Web www.telstrasuper.com.au Email contact@telstrasuper.com.au
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, October 2016 The information contained in this publication is correct as at October 2016 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. Moving Forward® is a trademark in Australia of the Telstra Corporation Limited.