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Your money,

your life A financial guide to help you make the most of it


Your online money toolkit MoneySmart is an initiative of the Australian Securities & Investments Commission (ASIC) that offers lots of easy-to-use tools to help you make the most of your money. Visit moneysmart.gov.au for a Budget Planner you can download or use online to: ››work out where your money is going, and ››check if you are spending more than you can afford. There are other financial tools too, like a savings goal calculator and a smartphone app to track your spending. 2


When it comes to managing money, are you on track ? page

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Everyone’s financial journey is different���������4

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No matter where you are in life, it’s important to be financially prepared.

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Things won’t always go to plan��������������������� 18

Find spare money and set some goals������������7

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Want to go on a holiday ? Renovate ? Start an investment portfolio ? The first step is to track where your money goes.

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Reach your savings goals�������������������������������22

Build wealth, not debt������������������������������������� 12

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Debt isn’t always a bad thing. The key is knowing the difference between ‘good’ and ‘bad’ debt.

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Investing is about putting your savings to work. And, depending on your goals, timeframe and attitude to risk, there are lots of investments to choose from.

Love your super������������������������������������������������25

Changing jobs ? Make the most of it������������� 14 Switching jobs can be a time of excitement and new beginnings. It’s also a great time to get your savings and super in order.

Time off work if you’re injured can have a big impact on your cash flow. The good news is that as a member of AustralianSuper, even if you don’t have insurance, it’s easy to get quality cover online or over the phone.

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For most people, apart from the family home, super is their biggest financial asset. And it’s often the best way to achieve a comfortable retirement.

We can help������������������������������������������������������29 Sometimes, the financial help you need is really just the answer to a question. And it’s easy to get help through AustralianSuper online, over-the-phone or in person.

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veryone’s financial E journey is different

Financial life stages

No matter where you are in life, it’s important to be financially prepared.

Start job

You might be wondering why a super fund is talking to you about managing money. As one of Australia’s largest super funds, we have a lot of experience in managing and investing money. That’s why we put together this guide – to help you retire with more and enjoy life’s journey on the way. We explain simple money principles, like how to budget and achieve savings goals. We’ll show you how you can manage credit, work out what you’re worth, help make your money grow and plan for the unexpected. And if you need more help, there are lots of ways to get advice – online, over the phone or in person*. It’s your money and your life – make the most of it.

* The financial advice you receive over the phone or in person will be provided under the Australian Financial Services Licence held by a third party, not by AustralianSuper Pty Ltd (AustralianSuper), and therefore will not be the responsibility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is provided. 4

Friendships/working/ move out of home

Travel/ hobbies

20

30

››Choose a super fund for life ››Start a budget ››Set savings goals ››Pay off personal, study-related or credit card debt


Separation/ divorce

Marriage

Buy house or investment property

Kids start school Job promotion or back to work

Kids leave home Renovate or upgrade home

40

››Combine your super ››Start investing for wealth creation

››Check you have

enough insurance

››Keep credit under control ››Make a Will, or update your Will for life events like marriage, children or divorce

Work part-time

50

››Build up your super ››Pay off your mortgage ››Plan for retirement

60

››Clear up debts ››Build up your retirement savings ››Review your Will ››Think about a career change or working part-time

In your 30s and 40s, you may have debts to pay off and assets to protect. You may be earning more, but your expenses are going up too. Think about what you want to achieve in the next one, five or ten years – like buying or paying off a home, investing, maybe having children, or even travelling. By setting goals, you’ll find saving and good money habits come naturally. 5


6


2

ind spare money F and set some goals

Even small savings can really add up. A budget is the first step towards effective saving. You can see where your money goes and reach your goals more quickly.

How much could you save ? Tip

Monthly saving* $15

$180

Give up the take-away coffee in the morning (saving $25 a week)

$108

$1,300

Bring lunch to work four days a week (saving $10 per day)

$173

$2,080

$15

$180

$311

$3,740

Total savings

* Does not take into account of interest or tax payable. † Rounded to the nearest $10.

Managing money is all about finding the right balance between what is urgent and what is important. For example, buying a new car might be more urgent than buying a house, but you might choose a cheaper car because owning your own home is more important in the long run.

Yearly saving*†

Save 50 cents a day in loose change

Pay bills on time and avoid fees (saving around $15 a month)

Getting the balance right

Could you think of something to do with an extra $3,740 a year ? Find out how much you could save with Money Smart’s Budget Planner at www.moneysmart.gov.au 7


Choosing the right bank is important Your bank account is where your wages go – where you pay your bills and how you finance your dreams. So, it pays to choose the bank that’s right for you.

Comparing banks. Know what you’re looking for. Asha got married last year and she and her husband, Harij, live with Asha’s parents, while they save for their first home. Asha decides to review their banking options. Comparing banks takes time and effort. But it can be well worth it. Here are some things Asha considers before she does.

1

What are you really comparing ? Fees, interest rates, penalties, all of the above ? Be clear on what you’re looking for.

2 3

Shop around Look directly at bank websites as well as comparison sites. Make a shortlist No more than three – and then drill down into the detail. Compare the relevant product disclosure statements and other details on benefits and fees.

4

Ask questions Get a mobile banker to come to you and ask as many questions as you need to.

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A

B

Comparison websites. They’re not all they’re cracked up to be. Comparison websites are businesses that make money through sponsored links and commissions. Most comparison sites only cover a portion of the market, not the whole market. Just like manufacturers ‘buy’ space on supermarket shelves, financial product providers ‘buy’ the right to be compared on the website. Remember too, the ratings and rankings are unique to each website – you should always compare rates on providers’ websites to be sure you’re comparing apples with apples.

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Helping with the costs of raising children Depending on your family income, you could qualify for Government assistance to help with the costs of raising children, including : ››Family Tax Benefit Part A and B – fortnightly payments to families ››childcare and out-of-school care, and ››the ‘Schoolkids bonus’. Until July 2016, parents who qualify for the Family Tax Benefit Part A will get up to $422 for each primary school child and up to $842 for each high school child, paid in instalments in January and July.

To find out more about Government help for families, visit www.familyassist.gov.au 10

Paying for the kids Raising children is expensive. And by far the biggest cost is education. For a child born in 2016, you’ll pay roughly $38,904 for their secondary schooling in a public school, $170,583 in an independent school (for example Catholic) and $325,220 in a private school, according to the Australian Scholarships Group (May 2015).


Case study

How to save for private school fees

Giving the kids a good education Luis and Francisca have two children, aged five and three, and they decide to start saving for their secondary education. Here’s how the figures add up :

Many parents work hard to give their children a private secondary education. If this is a goal you’d like to achieve, here are some ways to get started.

$700 a month invested @ 5% a year

1

2 3

If you pay childcare, once your children start primary school, put this amount as extra in your mortgage. Education savings plans are special purpose investments that may have tax advantages. You make regular payments before your child turns 11 and these payments are returned to you when your child starts secondary school. Advantages ››tax-paid investment ››set-and-forget savings plan, and ››can be topped up with lump sums anytime. Disadvantages ››low returns ››you could lose the tax benefits or even forfeit your entire investment if not used for education, and ››tax paid may be greater than investing in your own name.

$90,000 Investment balance

Paying more into your mortgage can save you interest on your loan. You could then draw back on these extra payments to cover school fees.

$60,000

$30,000

$0

1

2

3

4

5

6

7

8

9 10 11 12 13 14

Year

By starting early and topping up your savings regularly, even a big goal like private education may be achievable.

Assumptions: Invest $920 a month for 13 years. 4% earnings rate (no allowance for tax on earnings). Child 1 commences school at the beginning of Year 7 when school fees are $10,000 a year, increasing 10% each year. Child 2 commences school at the beginning of Year 9. School fees are paid at the beginning of each year they relate to. Results are in notional dollars. 11


3

uild wealth, B not debt

Debt isn’t always a bad thing. When you take out a mortgage, you’re borrowing to buy an asset that may be worth more by the time you pay off the loan. So a mortgage may be a good debt. Make the most of your mortgage Paying more than the minimum in the early years of your mortgage can : ››reduce the interest paid by tens of thousands of dollars ››create a reserve to cover unexpected expenses ››give you the option to slow down your payments in later years. Bad debts are the ones that don’t help you build wealth and the most common is credit card debt. In the last 15 years*, credit card use has risen from around 9 million to almost 16 million and the amount of debt has quadrupled. At March 2015, Australians owed over $51 billion on credit cards – plus spent more than $20 billion on finance cards with an interest-free period. * RBA Credit Card and Charge Card Statistics March 2015. 12


If you owe $5,000 on your credit card and only make the minimum repayments, it would take you 33 years to pay it off... longer than a mortgage.*

What is your credit history ? Did you know that just applying for credit or a loan gives you a credit history ? Most people never see their credit file, so they don’t get a chance to check if it’s accurate. You need a decent credit history to borrow money for a house, car or even to get utilities connected.

Things that could give you a bad credit history

››overdue repayment (more than 60 days late) ››missing a repayment or failing to repay a loan, or ››having goods repossessed.

Any of these things can make it harder for you to get credit in the future.

How long does a credit history last ? Details of warnings or issues may remain on your credit file for up to five years.

To find out more about your credit history visit www.moneysmart.gov.au

*C  alculation made using ASIC’s Credit Card Calculator at www.moneysmart.gov.au 13


4

hanging jobs ? C Make the most of it

Switching jobs can be a time of excitement and new beginnings. It’s also a great time to get your savings and super in order.

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Before you change jobs

Low fees

Read your new employment contract and make sure you’re clear about your wages, working hours (including overtime), performance reviews and any special conditions.

AustralianSuper works hard to keep fees and charges low by using our size and financial strength to get the best deal with our investment managers and service providers.

When you start your new job

AustralianSuper charges fewer fees than some other funds and our fees are generally low, which may help your super grow faster.

You’ll probably visit Payroll to sort out your tax and super.

1

Your tax Make sure you complete a Tax File Number (TFN) declaration form. If you don’t, you’ll be taxed at 49% (including Medicare levy and Temporary Budget Repair levy) – almost half your pay.

2

Your super choice When you change jobs, you can tell your boss you’re with AustralianSuper. This way, you won’t have another super account to keep track of.*

Type of fee‡

Amount

Establishment fee

Nil

Administration fee

$1.50 a week

Investment costs (Indirect cost ratio – the cost to manage your investment – for 12 months to 30 June each year)

From 0.06% to 0.73% a year (depending on your investment option)

Investment switching fee

Nil

Contribution fee

Nil

Exit fee

$35. Charged on withdrawals

3

Your savings goals If you get a pay rise, think about putting this extra into a savings account, it can be a great way to kick start your next savings goal, or boost your super.†

* Check fees, charges and insurance cover provided by your employer plan before making a decision. † You should consider your debt levels before adding to super. ‡ Other fees may also apply. Go to www.australiansuper.com/RefFees for more information about other costs.

Size matters Our size gives us greater buying power, more investment opportunities and helps keep costs low. At 31 March 2015, AustralianSuper looked after the super of more than 2 million Australians – that’s over $90 billion in super savings. We also help more than 210,000 businesses across almost every industry to manage their super payments – easily. 15


Case study

Kate saves for a flat Kate is about to start a new job. Her take-home pay will be $165 a week more than in her last job. She decides to to save this extra money using an online savings account. In five years, Kate could have saved $45,552 – enough for a deposit on a one-bedroom flat. Source: MoneySmart Compound Interest calculator at www.moneysmart.gov.au, May 2015 saving $165 a week for five years and earning 3 % pa interest.

Want to save fees on your super ? Whenever you change jobs, tell your new employer to pay your super into your AustralianSuper account. Just fill in the form at www.australiansuper.com/ PayMySuper print it off and hand it in to Payroll. Check fees, charges and insurance cover provided by your employer plan before making a decision. 16


What if you lose your job ? Retrenchment can be a stressful time, especially if it takes a while to find a new job. If you receive a retrenchment payment, it’s important to look ahead a few months and consider putting some money towards existing debts and essential living costs. If you have a mortgage, you could speak with your bank about your situation and show them your budget – something that will show the bank you’re willing to take control of the situation in a positive way.

AustralianSuper can help with information if you’re retrenched. Visit www.australiansuper.com/retrenchment 17


Case study

5

hings won’t T always go to plan

If you were off work even for a short time through illness or injury, could you cope without your salary ? There are three key types of insurance everyone should think about:

1

Death cover, which pays your dependants or legal representative a lump sum if you die

2

Total & Permanent Disablement (TPD), which pays you a lump sum if you are unable to work again, and

3

Income Protection, which pays you a monthly benefit if you are unable to work through illness, injury or accident for up to two years.

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Eleni and Theo are married and have three children. Theo is 36 and earns $54,000 a year, or $4,500 a month (plus 9.5% SG contributions). While playing soccer, Theo badly injured his knee and spent four months off work. When Theo joined AustralianSuper, his automatic Income Protection cover was $3,000 a month. Luckily, he decided to review his cover and realised he could apply for $4,000 a month of cover based on his salary. This gave him $3,825 (75% salary plus 10% super) a month. This extra income really helped cover living costs while he recovered.


How much cover do you need ? To work out how much cover you need, you might think about: ››any credit card, personal loans, or mortgage commitments ››medical expenses caused by illness or injury ››other costs, like private education or investment loans, and ››other income you could use to meet expenses while you’re off work.

Get insurance cover through AustralianSuper When you join AustralianSuper, most members automatically receive Death and TPD cover based on their age. Most members also get some Income Protection. It’s a good idea to check your level of cover, if any, with us – you may find you need more or even less cover depending on your situation. Find out more about your insurance options and conditions of cover in the Insurance in your super guide available at www.australiansuper.com/ InsuranceGuide

Work out how much cover you need It’s easy with our online Insurance Calculator at www.australiansuper.com/calculators 19


Case study

What about divorce ?

Starting again at 42

Separation or divorce can be financially devastating. With nearly one in three marriages ending in divorce*, it’s important to understand the impact divorce could have on your finances.

Steve and Suzanne divorced two years ago and they have two boys, Luke and Michael.

Financially, divorce affects men and women differently, depending on how property is divided. The median age of divorce for men is 45 years* and for women is 42 years*, and almost half involve children. Typically, men’s living standards decline as women tend to be awarded the family home. On the other hand, women’s incomes can drop sharply if the husband was the main wage earner. * ABS Divorces Australia, 2013.

Have a ‘Plan B’ Sudden and unexpected changes that affect your earnings, like illness, retrenchment or divorce can be very costly. Try not to tie up every dollar in your budget. Making extra payments on your mortgage can be a good way to give yourself room to move financially. 20

Suzanne got the house as part of the settlement, but had to give Steve half of her super, leaving her with only $14,000 for her retirement. Steve’s cost of living goes up because he has to cover his own day-to-day living expenses, as well as contributing to the costs of raising Luke and Michael. Luxuries like annual holidays become a thing of the past. For Suzanne, life is a struggle as she returns to work full-time to pay the mortgage, as well as caring for the boys on her own.


Where to get help If your relationship breaks down, it might help to take stock of your financial position. Gathering copies of joint bank accounts, bills, financial commitments and other legal documents can give you a clear picture of your financial situation. The Family Law Courts website, www.familylawcourts.gov.au is a good source of information on how to : ››apply for divorce ››get legal advice ››deal with property and money, and ››make arrangements for children during and after separation.

How is super split ? Superannuation law lets couples whose relationship has broken down split their super in the same way as they can divide other property. You should get legal advice before deciding what to do. A lawyer can help you understand your legal rights and responsibilities, and explain how the law applies to your case.

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6

each your R savings goals

Investing can help you reach your goals faster. And there are different types of investments to suit your goals and the level of risk you’re comfortable with. Your goals When investing, you should think about how much you’ll need and how long your money will be invested. Below are some typical goals and how long you might need to invest to achieve them.

Goals for the short, medium and long term Short term

Go overseas

Medium term

Private school fees Retire from full-time work

Long term 1 year

22

5 years

20 years plus


The different asset classes Shares

Part of a company that you can buy and sell on a securities exchange. Share investments can include both Australian and overseas companies.

Property

Investments in real estate that can be made directly, or through a real estate investment trust, listed on a securities exchange. Investments include office buildings, shopping centres, hotels, resorts and industrial properties.

Infrastructure

Assets that provide essential and community facilities, such as power supply and generation, transport, sewerage, water, toll roads and ports.

Fixed interest

Loans to governments, private companies, banks and other corporations, which pay regular interest over a set term.

Cash

Investments in the money market, such as bank bills, and bank deposits that typically pay regular interest over short periods of time.

Private equity

Investments in companies that are not listed on a securities exchange. They can include Australian and international companies.

Short-term and long-term risks Similar investments grouped together are called asset classes. Each has different risks and potential returns. For example, an investment that offers a higher potential return, might also have a higher risk of short-term losses. Your risks change with your investment timeframe :

››the key short-term risk is that

investment market ups and downs (volatility) cause your investment to fall in value, and

››over the longer term, the key risk is that your investment won’t keep up with inflation.

Be specific about your investment goal and remember to check your progress against your goal regularly. You can use the savings goal calculator at www.moneysmart.gov.au 23


How can you reduce investment risk ? Asset classes generally perform in cycles. When one asset class is performing poorly, another may be performing well. So one of the most successful ways to help reduce investment risk is to spread your investment across a range of asset classes. This is known as diversification.

How inflation can impact your buying power If you’re investing, you need to consider the potential impact of inflation on your investment return. If you’re too conservative, you may find your investment doesn’t keep up. For example, if you were to put $10 in your purse today, and then take it out again in 30 years’ time, what would you expect it to buy ?

The buying power of $10, now and in 30 years, with and without the benefit of investment returns Now An apple costs $1, so $10 can buy 10 apples today.

$10 In 30 years In 30 years without investment.

In 30 years with investment returns of 6% pa and returns on those returns (‘compounding’).

$10 If that $10 has been in a wallet for 30 years, and assuming inflation of 2.5% a year, the price of apples may have risen to $2.10. That $10, dusted off and taken to the shop, only buys 4 apples plus some change.

$66 If the $10 had been in an investment account returning 6.5% a year, the initial $10 will have grown, with your investment returns and returns on those returns, to be worth $66, which will buy 31 apples at the increased price of $2.10.

For more information on risk, read our Investment Choice Guide available at www.australiansuper.com/InvestmentGuide

Assumptions : To assess the buying power of $10 in 30 years, we have to make some assumptions about inflation (the rise in the Consumer Price Index and therefore prices) and investment returns. In this case we have assumed 2.5% inflation based on the midpoint of the Reserve Bank of Australia’s stated target rate of inflation which is 2–3%, on average, over the cycle. The assumption of 6.5% investment return is based on AustralianSuper’s Balanced option where the investment objective is to outperform an average annual return of CPI + 4% over the medium to long term. In this example, the inflation and investment return have been compounded annually. All income has been reinvested. No contributions, withdrawals or taxes have been taken into account. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. 24


7

Love your super

For most people, apart from the family home, super is their biggest financial asset. And from an investment perspective, it doesn’t get any better because it’s one of the few tax-savings plans actively encouraged by the Government.

25


Case study

Things you can do to make your super happy – put in more, sooner * Sam, Diane and Jason decide to add $200 a month extra after-tax to their super for 10 years. They each contribute $24,000 extra, but start at different ages. Here is the result of their efforts :

Sam

Diane Jason

$200 a month extra to super from age 55 to 65 : $446,700 by age 65 from age 32 to 42 : $471,600 by age 65 from age 22 to 32 : $500,100 by age 65

$400,000

$450,000

$500,000

What a difference time makes Even though they put in the same amount, Sam’s final super balance is $28,500 more than Diane’s and $53,400 better than Jason’s. Source: AustralianSuper actuarial calculations May 2015. No withdrawals or taxes have been taken into account. Assumptions: $30,000 super balance at age 22, $50,000 annual salary increasing by 3.5% annually, 9.5% Superannuation Guarantee (SG) contributions, 6.5% annual investment return net of fees and taxes. Figures expressed in today’s dollars and rounded to the nearest $100. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. * You should consider your debt levels before adding to your super. 26


How can you add more to your super ? Making extra contributions to your super makes sense

Contribution limits and tax

But which way is best ? Depending on your income and personal circumstances, you may be better off contributing before or after tax, or using a combination of both.

The Government puts limits on how much you can contribute to super at the low tax rate of 15%. The table below shows how much you can put into super and some of the ways you can get a top-up from the Government or build your spouse’s super account.

Type of contribution Before-tax (salary sacrifice and employer SG contributions)

After-tax (from take-home pay)

Limits

Government co-contribution

Tax payable

Up to age 49 : $30,000 a year. Age 50 and over : $35,000 a year.

15% on amounts up to your allowable limit*.

Amounts over the before-tax limit count towards your after-tax limit.

Your personal tax rate, plus an interest charge.

$180,000 a year.

0% on amounts up to the limit. 49%† on amounts in excess of the limit‡.

If under age 65, you can contribute up to $540,000 over a three-year period. The three-year period is triggered in the year you first exceed your $180,000 limit.

Any contributions over $540,000 in that three-year period will be taxed at 49%†‡.

* If your income (including your before-tax contributions) is over $300,000, all or some of your before-tax contributions will be taxed at 30%. † Based on 2014/15 rates and includes the Medicare levy and Temporary Budget Repair levy. ‡ If you go over the limit, you can ask your super fund to release the excess amount so you don’t pay the extra tax.

Spouse contribution

No

No

Yes, but limits apply. If you earn $34,488 or less, the Government will pay 50c for every $1 you add to super from your take-home pay up to $500 before cutting out at $48,488.

Yes, but limits apply. You can put in up to $3,000 as a super contribution and get a tax rebate of 18% (up to $540) if your spouse earns less than $13,800.

Paying extra into your super may reduce your tax, earn you a government co-contribution, or help you retire with more. Log in to your account at www.australiansuper.com to see what a difference adding to your super could make. 27


Case study

When salary sacrifice is no sacrifice at all Lisa is 37 and earns $45,000 a year. She can afford to put $50 a fortnight more into super – but she’s not sure if she should do it as a before-tax or after-tax contribution or a combination of both. Let’s have a look which way might work out best.

Salary Before-tax (salary sacrifice) contributions Taxable income Income tax

*

After-tax contributions Take-home pay after super contribution Total annual super contribution†

Scenario 1 Before-tax

Scenario 2 After-tax

Scenario 3 A mix of beforetax and after-tax

$45,000

$45,000

$45,000

$2,031

Nil

$1,564

$42,969

$45,000

$43,436

$6,016

$6,747

$6,184

Nil

$1,300

$299

$36,953

$36,953

$36,953

$5,360

$5,084

$5,412

Lisa adds more to super each year... and keeps the same take-home pay

* Tax based on 2014/15 rates, including Medicare levy and low income tax offset. † After 15% contributions tax deducted and including the 2014/15 Government co-contribution amount of $150. Source : AustralianSuper Actuarial calculations, May 2015. Assumptions : 37 year old, earning $45,000 before tax pa. Contributions tax 15%. Individual rate 34.5% (including Medicare levy). 28


8

We can help

Want to manage your money better ? Sometimes, the financial help you need is really just the answer to a question. But you won’t know what you need until you start looking. AustralianSuper offers simple financial help and advice options you can trust. You can do your own fact-finding using our website and online calculators, get over-the-phone super advice* or speak to a financial planner†.

Website and online calculators Our website is an online resource at your fingertips, whenever and wherever you need help with your super. You can see how some of the examples used in this guide apply to your situation. Visit www.australiansuper.com and log on. What do you get ?

Who does it suit ?

You’ll get answers and information tailored to your needs. ››Our Contributions Adviser shows you how paying extra into your super may reduce your income tax, get you a government co-contribution payment, and help you retire wealthier. ››Use our AustralianSuper Retirement Income Calculator to find out how much income your super may provide in retirement and the steps you can take to help increase it. ››Check out your insurance with our Insurance Calculator. Most of us are under-insured. Find out how much insurance cover you may need and how much it will cost.

If you prefer to do your own fact-finding, then our calculators may be for you.

*† See page 30 29


Over-the-phone super advice* A specialist team of superannuation advisers can speak with you over the phone about your super. They can help you with questions or issues like: ››choosing an investment option ››how to add to your account ››checking your insurance cover ››tax-effective planning for retirement Call 1300 300 273. What do you get ? Advice on questions and issues related to your super, following by a written Statement of Advice, if necessary. Who does it suit ? If you have specific questions about your super, retirement or insurance within your super, over-the-phone advice may be right for you.

*T  he financial advice you receive will be provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd (AustralianSuper) and therefore is not the responsibility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is provided.

†T  he financial advice you receive from an IFS planner will be provided under the Australian Financial Services Licence held by Industry Fund Services Pty Ltd, not by AustralianSuper, and therefore will not be the responsibility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is provided. ‡Y  ou may be able to use some of your AustralianSuper savings to pay for financial planning services relating to your AustralianSuper account only.

30

Speak to a financial planner† (commission-free, fee-for-service)

A qualified financial planner can help you look at the big picture of your finances and make a plan to help you reach your goals. They can help you with questions or issues like : ››Tax planning ››Investing inside and outside of super ››Managing debt ››Transition to retirement ››Making a Will and other estate planning What do you get ? You’ll receive an information pack before your initial consultation that will run for about 1.5 hours. If you wish to continue with formal advice, your financial planner will prepare a full financial plan outlining fees and all recommendations. You can also get your financial planner to implement the strategy for you. A financial plan can be provided on a no-commission, fee-for-service basis. All financial plan costs will be determined by your advice needs and the complexity of advice to be provided as agreed up front with your adviser. Who does it suit ? If you have more complex questions about your broader financial situation and you’re happy to pay a fee for comprehensive advice.


And don’t just listen to us… MoneySmart is a great initiative of the Australian Securities & Investments Commission (ASIC) that offers good consumer financial advice. There are tips, tools and easy-to-use calculators to help you make the most of your money. Visit www.moneysmart.gov.au

Some simple things to remember about managing money

1

Make your goals real Saving for your ‘financial freedom’ doesn’t really mean much. Saving for your first property, your next car, or a trip overseas – these are real goals.

2

Have short-term (one, two or five years) as well as long-term (more than five years) goals That way, you’ll enjoy ‘quick wins’ and feel motivated to save for the long term as well.

3

Super can be set and forget By choosing a good low-cost fund early on and keeping it for life, you’re sure to retire with more.

4

There’s no set recipe for how you should spend your money No matter how much you earn, you will always find things to spend your money on. The key is to use your money wisely to make your life truly fulfilling.

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About this financial guide The information in this financial guide should not be considered as personal financial advice. It gives general information only and doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read the Product Disclosure Statement. It’s important you consider your situation and seek your own independent financial advice before making financial decisions. Speaking to a licensed financial adviser may help.

Contact us Call

1300 300 273 (8am to 8pm AEST/AEDT weekdays)

Email www.australiansuper.com/email

Find updates online While all reasonable effort has been taken to ensure that the information contained in this guide is correct at May 2015, such information may be subject to change and should be verified before making financial decisions. AustralianSuper will not be liable, or bear responsibility, for any loss or damage arising as a result of your reliance on the contents of this guide. Keep up-to-date at www.australiansuper.com/YourMoney

Web www.australiansuper.com

SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. Go to www.australiansuper.com/ratings for details on the Heron Partnership’s rating of AustralianSuper. Important information: Investment returns are not guaranteed as all investments carry some risk. Past performance gives no indication of future returns. This guide was issued in May 2015 by AustralianSuper Pty Ltd  ABN 94 006 457 987  AFSL 233788, Trustee of AustralianSuper  ABN 65 714 394 898.

10461 05/15

Mail GPO Box 1901, MELBOURNE  VIC  3001


Your Money, Your Life (Builder)