true wealth FEBRUARY 2018
YEAR +NEW NEW JOB? Your guide to making the switch
ALAN KOHLERâ€™S ADVICE TO MILLENNIALS
SUPER +FIVE STRATEGIES How to ensure your super is in great shape
Your fund. Your wealth. Your future.
THE MORE YOU KNOW ABOUT SUPER, THE MORE IT CAN WORK FOR YOU. Think of it as an hour or so of life savings
We’re here to help you build your wealth and invite you to attend our seminar series to learn more.
Key topics include: +Planning for retirement +Understanding Centrelink for retirees
Call us on 1300 133 177 or visit www.ngssuper.com.au/seminars to book any free seminar that suits your needs.
Your fund. Your wealth. Your future. 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
Our seminar series is a relaxed and informative way to learn more about super and discuss the topics most relevant to you. It’s free and runs throughout the year in every state.
WELCOME Wel Welcome to our ﬁrst edition for 2018. While this year’s already off to a ﬂying start, I’m proud yea to say that NGS Super enjoyed a successful 20 2017 with our Diversiﬁed (MySuper) option (A (Accumulation account default) and Moderate Gr Growth option (Income account default) each ret returning 11.76 per cent over the calendar year. Last year we also announced the six NGS Super Scholarship Award winners for 2017 who are listed on page 3. This year, we look forward to hearing about their successes and sharing their stories with you. It’s set to be an exciting year for NGS Super as we continue to invest in our capabilities and, in particular, our leadership. We recently welcomed two new executives to our Fund, Angie Mastrippolito (chief operating officer) and Ben Facer (chief risk and governance officer). For our members, this means enhancing our operations and your overall customer service experience. The new year offers a fresh start with new goals and resolutions. If getting yourself on track ﬁnancially is high on your agenda this year, seeking ﬁnancial advice could make all the difference. Read on page 6 about how a visit to an NGS Super ﬁnancial planner started one of our members on the road to being ﬁnancially secure for life. Please visit ngssuper.com.au/ﬁnancial-planning to ﬁnd out about how we can help get you moving in the right direction ﬁnancially, or call us on 1300 133 177 for a personal chat with an adviser. *Past performance is not a reliable indicator of future performance.
NEWS AND NOTES The latest from NGS Super, including an investment update and exciting partnership.
THE GREAT AUSTRALIAN DREAM Discover savvy tips to escape the rent merry-go-round and turn your dream of owning a home into reality.
A WEALTH OF KNOWLEDGE Hear how the team at NGS Super helped former teacher Jan Wettone achieve a retirement most dream of.
BACK IN THE SWING OF THINGS From financial security to a sense of purpose, here’s why more Australians are pressing pause on retirement.
YEAR, 10 NEW NEW JOB? If a new job is on your wish list for 2018 here’s how to keep your retirement savings on track as you make the switch.
LATER-LIFE 12 THE GAP YEAR Here’s what the experts have to say about taking a gap year in your thirties, forties or fifties.
WAYS TO GET 13 FIVE SUPER FIT So you suspect your super is not in great shape? Here are five ways to get it into tip-top condition.
Anthony Rodwell-Ball, CEO, NGS Super
THE TRUE WEALTH TEAM NGS Super Leni Vu Marketing and Communications Manager
Published by Hardie Grant Media
Acting General Manager Alison Palfrey
Art Director Dan Morley
Cover image Stocksy
Deputy Managing Director Clare Brundle
Managing Editor Tiffany Eastland
Designer Sue Morony
Print PMP Print
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.
STAKE A CLAIM The Australian Taxation Office (ATO) has revealed there are more than 6.3 million lost and ATO-held super accounts with a total value of $18 billion. Assistant Commissioner Debbie Rawlings encourages people to keep track of their super via the ATO’s myGov online services. “Over the past four ﬁnancial years we’ve reunited 1.68 million accounts worth $8.12 billion with the account owners, and there’s plenty more to be found,” says Rawlings. When you use the myGov platform to track down super, the money is transferred into your preferred fund within three working days.
NEWS and notes
2017 proved to be a great year for growth assets. In the USA, the S&P 500 share market index rose 21.8% over the year and, more remarkably, posted positive returns each month – something that had not been achieved in almost six decades. In Australia, our economy continues to break records with the longest period of uninterrupted economic growth and the S&P/ASX 300 share market rose 12.0%. The Fund’s investments into both direct property and infrastructure continued to provide high levels of income together with stable capital growth. On the ﬁxed income side of the portfolio, the Reserve Bank of Australia kept domestic cash rates at 1.5%, while the Federal Reserve raised US cash rates three times. Overall, the returns of 11.76% over the calendar year for both the Diversiﬁed (MySuper) option (Accumulation account default) and the Moderate Growth option (Income account default) are reﬂective of the Fund managing a balance in its exposure to strong equity markets while maintaining a prudent approach to risk.
Ray Dalio is one of the world’s most successful investors and entrepreneurs. In his #1 New York Times bestseller Principles (Simon & Schuster, $45), he shares those unconventional principles that helped him achieve unique results in both his professional and personal life. This two-in-one book features Life Principles, which tells the story of Dalio’s career and explains his overarching approach to life, and Work Principles, which explains the unusual way Dalio ran Bridgewater Associates for more than 40 years.
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+ INSPIRATIONAL READS
NEWS & NOTES
CEO Anthony Rodwell-Ball with recipient Mark Fielding.
Gettingg to kn ow you... We chat to Toby Perkins, NGS Super financial planner Q.What does your role involve?
2017 NGS Super Scholarship Awards NGS Super recently announced the winners of the 2017 NGS Super Scholarship Awards, which encourage the professional development of those in the independent education sector. Six scholarships were awarded, giving recipients the opportunity to undertake a professional development course, project or study tour of their choice.
Congratulations to: + Cynthia Jobe-Parker, Lakes Grammar, NSW + Brett Salakis, MLC School, NSW + Margaret Jordan, Abbotsleigh, NSW + Mark Fielding, St Stephen’s School, WA + Victor Calleja, St Columba College, SA + Peter Garside, Abbotsleigh, NSW
FUTURE LEADERS Within the past six months, two senior appointments have commenced at NGS Super, marking an exciting period of growth for the Fund. “A lot of work has been completed over the past year to position the fund for its next stage of growth and sophistication, including assessing succession planning and skills and competencies,” explains NGS Super CEO, Anthony Rodwell-Ball. Angie Mastrippolito joined NGS Super in October last year as chief operating ofﬁcer, while Ben Facer commenced in September as chief risk and governance ofﬁcer. On the two new appointments, Rodwell-Ball says: “We’re thrilled to have both Angie and Ben joining us to continue to drive the Fund forward and
further enhance operations and the customer service experience.” Rodwell-Ball says Mastrippolito brings a wealth of knowledge from her years at NESS Super, and prior to that Mercer and Towers Watson. “We really value her strong operational background, her success in managing third-party relationships and her ‘can do’ attitude,” he says. Facer, who is highly respected in the superannuation industry, impressed Rodwell-Ball with his track record in consulting and his intricate knowledge of the super space from a risk and governance perspective. “We are really excited about what the next chapter for NGS Super holds and look forward to working closely with both Angie and Ben to continue our journey.”
A. In a nutshell, my role is to help my clients grow, preserve and protect their wealth. Alongside this, a big part of what I do is to educate clients and help provide a long-term perspective in relation to their finances. Q.What is the most satisfying part of your job? A. The most interesting part of my role is getting to meet such a diverse range of people, with different life goals, experiences and perspectives. However, the most satisfying part of my role is helping people get closer to their goals and providing a better understanding of whether they will be able to achieve these. For some this might mean making some small adjustments to their current strategies, whereas for some it can mean implementing some big changes. Q.What is your top tip for looking after your finances? A. Don’t procrastinate. Get help and seek advice. This might be in relation to something relatively simple but it can still make a big difference. If you’re approaching retirement or have other needs, seeking the help of a financial planner could be the smartest decision you make.
The Great AUSTRALIAN DREAM B
uying a house, especially for young people only starting to ﬁnd their ﬁnancial feet, has become increasingly difficult. From 2006 to 2016, ﬁrst home purchases across Australia declined by around a third according to the Australian Bureau of Statistics (ABS), although the numbers did rally in the latter part of 2017 due to ﬁrst home buyer incentives offered by the Victorian and New South Wales governments. Veteran ﬁnancial journalist and publisher of The Constant Investor Alan Kohler says these statistics can be dispiriting for young people hoping to purchase their ﬁrst home. It’s also frustrating when they’re sometimes painted in the media as frivolous or poor ﬁnancial managers. “The millennials I speak to about that respond that there is no point scrimping and saving for a deposit because they’ll never get there – they might as well enjoy life and keep renting,” he says. This is the main stumbling block for millennials who struggle to purchase their ﬁrst home – scraping together a decent deposit on a limited salary. “The main reason is the difficulty of saving a deposit, especially in Sydney and Melbourne. Wages growth is around two per cent per annum, while Sydney house prices have been
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growing at 15 per cent since 2012, while Melbourne has been 20 per cent,” he says. “That has basically made saving a deposit of 20 per cent of the house impossible – the goal is rising faster than wages.” Another issue is urban sprawl and making sure cities have public transport and other resources in place to support the number of households on the outskirts and ensure they have adequate employment opportunities. “Part of the problem is infrastructure – each successive generation has had to move further out, but now the affordable housing is too far away to easily get to a workplace. The cost of living has increased mainly because wages growth has not been keeping up with inﬂation,” says Kohler. To help offset the rising cost of living, Kohler has a few recommendations if you’re wanting to save for a house deposit and wave goodbye to living at home or paying off someone else’s mortgage. There are simple ways to lower your household bills without altering your lifestyle drastically. “Shop around for utilities and health insurance,” he says. Insurance companies are notorious for imposing a “lazy tax” on customers who blindly renew each year. By comparing the prices of at least three providers once renewal time rolls around and being prepared to switch
providers for a better deal, you could be saving yourself serious money. Mobile phone bills can also skyrocket quickly when roaming or data charges get out of hand, so keep a close eye on the data you’re using. Bill shock from racking up hundreds of dollars in excess charges can be a severe blow to your budget, so if you do incur extra charges, talk to your provider about a more appropriate plan to suit your needs. When it comes to purchasing, Kohler suggests your three main options are starting with a small apartment close to a major city or an outer-suburbs house without a backyard, or looking further aﬁeld in a regional town or smaller city such as Perth or Hobart.
Discover some savvy tips to escape the rent merry-goround and turn your dream of owning a home into reality. By Rebecca Douglas
If you’re looking for an apartment, he says choose wisely to maximise the return on your investment. “Don’t buy one off the plan. Make it a solid apartment in a small block, if possible, and you’ll get some capital appreciation,” he says. According to Kohler, options like a small apartment close to the city are preferable to splitting the cost of purchasing a home with friends or siblings. Relationships can break down over the years, especially if pressure is brought to bear through money woes or unequal incomes. “Have breakfast with your friends, go on holidays with them if you must, but for goodness’ sake, don’t buy a
DON’T BUY OFF THE PLAN. MAKE IT A SOLID APARTMENT IN A SMALL BLOCK, IF POSSIBLE, AND YOU’LL GET SOME CAPITAL APPRECIATION. house with them,” Kohler warns. There is some good news on the horizon to help with your budget, though. Kohler says that although he doubts there will be a dramatic decrease in house prices, he expects a modest fall could be on the cards in the not-too-distant future. “I think 10-15 per cent declines in price, especially in Sydney and Melbourne, are deﬁnitely in prospect,”
he says. Keeping an ear out for how housing prices are rising or falling in your area is useful so that you have an idea of where the market’s at when it comes time to buy. Further information for ﬁrst home buyers about saving for a deposit, applying for a mortgage, stamp duties and other costs can be found on the ASIC Moneysmart website (moneysmart.gov.au). TRUE WEALTH
A wealth of
Here’s how the team at NGS Super helped former teacher Jan Wettone achieve a retirement most dream of. By Tiffany Eastland
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for good service and I want to feel that I’ve been advised and made the best decisions possible.” When nearing her retirement, Wettone booked an appointment with an NGS Super ﬁnancial planner and admits to having felt a little out of depth at times. “I’m a fantastic teacher, but I’m not a money manager. I need someone to be able to teach that to me.” Wettone appreciates the patience of the people she has dealt with at NGS Super and was grateful to have had access to experts who could explain legislation in plain language. The next step was to establish a transition-to-retirement-plan – Wettone says this was the most important advice she received and it was
crucial on the road to retirement. “I went into town and spoke to my advisers, Darryn and Maria, and said, ‘Can I live like this until I’m going to die?’ and they said, ‘Yes, that’s ﬁne’,” she reﬂects. In fact, Wettone is now in a position most of us dream of – she has allocated funds for annual overseas trips, but is also determined to give back during her retirement. “I feel it’s important to make some sort of contribution because I accumulated quite a lot of knowledge in the time that I’ve been working.” Wettone now spends a day a week helping at the school she retired from. As for her next step, “I like education and I will always like learning, so at the moment I’m just putting one foot in front of the other.”
Start planning for your retirem en t today General (information) advice For answers to questions of a general or factual nature such as ‘What is the default investment option?’ and ‘When can I access my super?’ contact the NGS Super Helpline (1300 133 177). Limited personal advice Wondering whether the Fund’s default investment option is right for you or whether you are contributing enough to your super for a comfortable retirement? NGS Super offers free over-the-phone advice or an onsite visit at your sponsoring employer’s premises. The limited personal advice service does not take into account your entire ﬁnancial situation, but a Statement of Advice is provided.
Full personal advice All members can access a full ﬁnancial planning service at the NGS Super ofﬁces in Sydney, Melbourne, Brisbane and Adelaide. As a member, your initial over-the-phone consultation with a ﬁnancial planner is free of charge. Financial planning is provided on a fee-for-service basis. There are no commissions – NGS Super’s ﬁnancial planners are salaried and do not receive bonuses. For more information about these services or to make an appointment to speak with an NGS Super ﬁnancial planner, call us on 1300 133 177 between 8am and 8pm (AEST/AEDT) Monday to Friday, or +61 3 8687 1818 from outside of Australia.
Image: Chris Ireland
an Wettone dedicated four decades to teaching, and though officially retired, it would seem the former teacher’s days of imparting knowledge are far from over. Since retiring from a Sydney independent school for girls where she worked for 27 years, Wettone has helped ﬁve friends on the road to retirement by referring them to NGS Super’s ﬁnancial planning service – a service Wettone beneﬁtted from 18 months earlier. Wettone has been a member of NGS Super ever since the opportunity was made available. “It’s a consistently highperforming scheme, and it’s industry speciﬁc – these were important to me.” Wettone was working at an independent school when compulsory contributions were ﬁrst introduced and was one of the earliest adopters of salary sacriﬁce. “I’ve always believed that you have a responsibility to plan for your own future. People need to get into the habit of thinking ‘There’s going to be a time when I can enjoy my life with what I’ve accumulated’,” says Wettone. Since joining NGS Super, the recent retiree has embraced every opportunity to become better educated. Wettone says NGS Super has always provided sufficient education and advice. “It’s really the accumulation of knowledge that’s been most important to me. In the early days, NGS Super would send out an adviser to update members and provide basic education,” she explains. “I’m happy to take advice from people and I’m happy to pay for the management of my money – in fact, I couldn’t think of anything worse than managing it myself. I’m happy to pay
After more than four decades teaching, Jan Wettone is enjoying a well-earned rest in retirement. TRUE WEALTH
Back in the
SWING OF THINGS
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From financial security to a sense of purpose, here’s why more Australians are pressing pause on retirement. By Jo Davy
ransitioning into retirement used to be fairly straightforward. You had worked hard, invested wisely, and now you had reached that magic number where it was time to sit back and reap the rewards. But longer life expectancies have led to changes to the proﬁle of an Australian retiree, not least because an increasing number of us are hitting pause on our retirement by returning to part-time or even full-time work. Roughly 177,500 Australian retirees returned to the workforce (or planned to) in 2016-17, according to the Australian Bureau of Statistics, and it’s not necessarily for the reasons you might think. Financial need was the more common motivating factor behind a pause in retirement, but 30 per cent said they went back to work simply to keep themselves busy. NGS Super ﬁnancial planner Trudy Jenkins says a ‘working retirement’ is the most likely way forward for many in the baby boomer generation. “Over seven in 10 pre-retirees say they want to work in retirement,” Jenkins says. “In the near future it will be increasingly unusual for retirees not to work. Motivated, driven people who love their work and the associated regular income may ﬁnd themselves back at a desk before they even have a chance to spend too much time on the tennis court.” So why are retirees dusting off the briefcase?
‘money’ and ‘staying mentally active’ as the top reasons they would continue to work during retirement. Retirees who continued to work in some form were also found to be more stimulated, connected to others and proud of their lives than their non-working counterparts. Jenkins says that after decades spent building a career, it can be difficult for people to simply switch off their ambition. “Many people have a large part of their identity tied up in their jobs,” she says. “For reluctant retirees, even part-time work serves as a constant and holds individuals accountable.”
Closing the gender super-gap Women are living longer than men but retiring with less superannuation – about $120,000 less on average. So it’s no coincidence that women make up more than 60 per cent of Australian retirees returning to work. The deﬁcit has been caused by the gender pay gap, the increased likelihood of women taking career breaks to care for children or elderly relatives, and contribution restrictions for people working in lower-paid or part-time jobs.
MANY PEOPLE HAVE A LARGE PART OF THEIR IDENTITY TIED UP IN THEIR JOBS.. Returning to full- or part-time work late after retiring can be an excellent opportunity for women to supplement their superannuation and start closing the gap.
The longevity bonus
Illustration: Andrea De Santis
We have all heard the statistics. Australians are living longer. And while this means more time to spend with family, it also means your retirement fund has to stretch further. “Fifty or 60 years ago, people lived only a few extra years after retirement,” Jenkins says. “Now people are comfortably living to age 90 with a whole extra life after retirement – the period of funding retirement is now 30 years or more.” Full- or part-time employment can serve as a ﬁnancial safety net, allowing retirees to put off drawing from their retirement accounts while they continue to contribute to them.
A sense of purpose While it is true more people return to work for ﬁnancial reasons, maintaining a sense of purpose is just as important, according to Work in Retirement: Myths and Motivations, a 2014 Merrill Lynch retirement study conducted in partnership with Age Wave. Researchers looked at the myths and misconceptions around retirement and found that pre-retirees ranked
Light bulbs late in life Starting a new business is not to be limited to those starting out in their careers – quite the opposite, in fact. Another common retirement myth identiﬁed in the Age Wave study was that career changes are only for young people, with three in ﬁve respondents seeing retirement as an opportunity to pursue a new line of work. Senior entrepreneurs are Australia’s fastestgrowing segment of entrepreneurs according to Senior Entrepreneurship in Australia: Active Ageing and Extending Working Lives, a 2015 study by Swinburne University of Technology and Queensland University of Technology. Jenkins says that popular sectors for these ‘encore’ careers include public service and education. “Retirees returning to work want to do something different, stay inspired and stay informed. They want to engage with new people and learn new skills while giving back. They may not need to work yet they want to stay up to date and be challenged.” TRUE WEALTH
NEW YEAR, If a new job is on your wish list for 2018 here’s how to keep your retirement savings on track as you make the switch. By Christine Long
hen you’re changing jobs, or even careers, it’s easy to focus all your attention on ﬁnding a fulﬁlling role or securing that coveted promotion with better pay. But it’s also important to keep an eye on how the changes might impact your long-term ﬁnancial future. The growth of the ‘gig economy’ and industries such as aged care, where it’s
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common to pick up shifts with multiple employers, may pay the bills but they are not necessarily good for your retirement savings goals. Under Australia’s compulsory superannuation system, employers have to pay the Superannuation Guarantee (SG) which is 9.5 per cent of ‘ordinary time earnings’ (generally, regular salary or wages) for eligible employees. However, there are a number of exceptions to this rule. For instance, if you are earning less than $450 per month from an employer there is no requirement for them to make superannuation payments on your behalf. There is also no need for employers to make super payments for
part-time employees aged under 18 and working 30 hours or less each week. Even if you’re eligible to receive compulsory superannuation contributions from your new employer you shouldn’t take a set-and-forget attitude. “The majority of people who change jobs leave their super behind in an account that becomes inactive and still incurs fees,” says Anthony Arndt, customer relationship manager, NGS Super. Often this is when people start to collect multiple super accounts that can cost thousands of dollars in fees over someone’s working life. So what can you do to ensure your super savings stay on track when your employment situation changes?
THE MAJORITY OF PEOPLE WHO CHANGE JOBS LEAVE THEIR SUPER BEHIND IN AN ACCOUNT THAT BECOMES INACTIVE.
Know your entitlements When you start a new job, your employer needs to provide you with a Standard Choice Form within 28 days. This form allows you to nominate your super fund. “You can either nominate your current fund and avoid creating multiple accounts, or roll over the balance to a different fund,” says Arndt. “If you don’t complete this form your employer will automatically make payments to their own default or preferred fund.” Deciding on the best destination for your retirement savings should include weighing up your personal insurance beneﬁts within super. “Insurance
beneﬁts may depend on the type of industry you work in.”
Get help Some professional guidance can help you make decisions easier about your super savings as you transition to a new employment situation. “Many super funds including NGS Super provide a personal advice service. They can also assist with the transfer of accounts if you decide to consolidate your super.”
Start contributing A new role and a healthier pay cheque may allow you to make personal contributions to your super . “Making voluntary contributions
to your super fund is a great way to grow your super savings and help to achieve a comfortable retirement.” People frequently use their annual salary increases as a way to begin making these additional (voluntary) contributions without it having a signiﬁcant impact on their cash ﬂow. This can be done by making contributions from either before-tax salary or after-tax salary. Paying contributions from your before-tax salary is also known as salary sacriﬁcing and Arndt explains why salary sacriﬁcing into super can be a good opportunity. “These before-tax contributions are only taxed at 15 per cent when received by your super fund, which is quite a bit less than the marginal tax rate of 32.5 per cent (plus Medicare Levy of 2 per cent) which applies for average income earners.” All you need to do is arrange with your employer to direct some of your pay from your before-tax salary to your super fund. There are a few rules worth bearing in mind when it comes to salary sacriﬁcing. “Keep in mind that there’s an annual limit of $25,000 on your before-tax contributions regardless of your age. This includes the amount your employer is already contributing on your behalf.” The advantages of salary sacriﬁcing may be limited if you earn below $37,000. In that case, says Arndt, “aftertax contributions may be more effective if you’re entitled to the government co-contribution.”
Review regularly Finally, if you do ﬁnd yourself picking up shifts with multiple employers it’s important to ensure you’re receiving all your super entitlements. “The online facility provided by most super funds makes it easy to track contributions.” “If in doubt you can check with your super fund to ensure your information stays up-to-date and contributions are made on your behalf when you become entitled to them.” TRUE WEALTH
“But for some, the life experience more than outweighs the potential ﬁnancial setback.”
Careful planning If you fall into the latter category, careful planning is the key to maximising the fun and minimising the ﬁnancial impact. Start by determining how you’ll manage your mortgage while you’re away, Perkins advises. You’ll need to talk to your lender if you’re looking to vary your loan terms. Renting out your home may provide additional income but you’ll need to factor in the tax implications. Swapping homes is one way to neutralise or reduce accommodation costs. If you’re intending to take on personal debt to fund your travels, set yourself a borrowing limit and develop a plan for how you’ll repay it.
Here’s what the experts have to say about taking a gap year in your thirties, forties or fifties. By Sylvia Pennington
ver watched those youngsters departing on gap year jaunts and wished it were you heading for the airport with a new backpack, a Lonely Planet guide and no ﬁxed itinerary for the next 12 months? For professionals, particularly teachers whose employment contracts include the right to take an extended leave of absence, a later life gap year may be possible – but is it sensible?
Weighing the cost That depends on your priorities, and the ﬁrst question to ask yourself is whether it’s worth it, personally and ﬁnancially, NGS Super ﬁnancial adviser Toby Perkins says. Factors that may inﬂuence your 12
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answer include the size of your mortgage and whether you’re ahead on repayments, if you’ll have a job to return to, and any family or caring responsibilities you may have. Taking unpaid leave may also set your retirement plans back unless you’re able to top up your superannuation with additional personal contributions. For many folk, the idea is relegated to the category of “nice to dream”. “While it might be common to want to take a gap year mid or late career, it isn’t something we see too often,” Perkins observes. “Buying a home, raising children and putting aside funds for retirement often take priority for people in their thirties, forties and ﬁfties.
A detailed budget for travelling and at-home expenses will reduce the likelihood of being caught short midtrip, or experiencing a cash ﬂow crunch when you return. “Travel expenses can add up quickly so write a budget, set a daily or weekly spending limit and monitor your ﬁnances as you go,” Perkins says. Ensuring your insurance cover remains current is also vital and prepaying policies up until your return date can be the safest approach. “Having a policy like your home and contents lapse unintentionally while you’re gone could be a potential disaster,” Perkins says. Depending on your situation, you may have other ﬁxed expenses to consider. Taking ﬁnancial advice can help ensure you have everything squared away before you head off. Looking at your super (including your insurance arrangements through super) should be part of the planning process because making additional contributions may not be realistic. “If you contact your fund it can help you to understand the continuity of your super insurance beneﬁts if regular contributions aren’t being paid”, Perkins says.
Don’t blow the budget
ways to get
5 SUPER FIT
*These figures are published by ASFA and are in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6%. They are based on the means test for the Age Pension in effect from 1 January 2017.
So you suspect your super is not in great shape? Here are five ways to get it into tip-top condition. By Christine Long
Run a health check
Start a training regim e
Want to do a quick check-up on the state of your super? Whether you are four or 40 years from retirement there Look up the balance on your super fund’s website, mobile are ways to get closer to your savings goals. Here are a few app or latest member statement. tips: make extra contributions; consider the tax beneﬁts of If you have multiple funds from working with different salary sacriﬁcing; consolidate your super into one account; employers there’s an easy way to access all your and review your in investment options. nt, major of super members are in the default information, suggests Andrew Broadbent, The majority uper. investme option, says Broadbent. “If you’re customer relationship manager, NGS Super. investment comfor “Set up a MyGov account and link it comfortable taking more risk, or have a Currently, there are to the Australian Tax Office records.” long time to invest, you could consider an almost 15 million inve Under the ‘super’ tab there will be a investment option that is invested in more Australians with a gro list of any accounts linked to your tax growth assets like shares and property.” T NGS Super True Wealth ﬁle number. The super account. More Re Retirement Calculator (https:// than 40% of these sup supercalcs.com.au/ris9/ngs) is a great people have two or Set som e goals way to see how an increase or decrease more accounts. How much money do you need to retire inv in investment returns can impact your ll retirem comfortably? Broadbent reports a lot will retirement balance. ely to depend on how much money you are likely spend each year in retirement. Change your habits d off The Association of Superannuation Funds Making extra contributions could mean changing your Australia (ASFA) provides some clues with its quarterly spending patterns or deciding to put a pay rise into super. Retirement Standard data. Based on the ASFA data at Broadbent suggests reviewing regular expenses such as September 2017, a single person in NSW needs an annual electricity, entertainment, mobile phone plans and the budget of $44,011 and a couple in NSW $60,547 to have a interest rate on your mortgage to ensure you’re getting the ‘comfortable’ retirement. “This equates to a total balance best deals possible. of about $545,000* for a single person and $640,000* for a couple, assuming you own your own home, plan to draw down all of your capital and are eligible to receive Check your progress and a part age pension,” says Broadbent. “Once you have a celebrate success better understanding of how much you’ll need each year, Staying motivated with any goal is easier when you it becomes easier to work out whether you’re on track to celebrate your progress. “The start of a new year or the end reach your goal.” of the ﬁnancial year is a great time to check that your super NGS Super’s relationship managers and ﬁnancial is on track,” says Broadbent. planners can help you review your plans and set goals.
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WE’LL COME AND MEET YOU AT YOUR WORKPLACE. Think of it as an hour or so of life savings
Making your super work hard for you shouldn’t mean hard work on your part. When you need advice on how to achieve ﬁnancial security and plan for your future, our local customer relationship managers can come to you.
Your fund. Your wealth. Your future.
To book our no-obligation free service, please call 1300 133 177. 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 3466 (0118)
For more information, please visit us at www.ngssuper.com.au