NSF Super News Member Edition
Winter 2014
Welcome to the latest edition of NSF Super News, where we look at the new, simpler way to consolidate accounts, getting help from a Money Coach, detail the new rates and thresholds for next financial year and look at some recent research on women in super, plus much more.
Rounding up your super accounts is even easier online If you do some research, you’ll see that just about every list of ‘top tips for saving more super’ includes gathering up the multiple accounts you may have and rolling them over into a single account. We think it’s a great idea too, because not only will it make it much easier to track and manage your super savings (no more ‘lost’ accounts), you could end up paying a lot less in fees. When thinking about rolling over super accounts, you should consider any exit fees you may be charged by other funds and the loss of any insurance cover held in other accounts.
How we’ve made it simple Up until now, the rollover process involved completing a detailed form for each fund, getting certified copies of your ID, and posting the forms away – but not anymore! Now you can consolidate any other accounts you may have, into your NSF Super account online, in just a couple of minutes through your MemberAccess account. After logging in to MemberAccess via our website, you will notice that there is now a ‘Consolidate Super’ tab, where you can follow a few simple steps:
Rounding up all of your old super accounts is easier than ‘ewe’ might think! Of course, if you don’t already have a MemberAccess account, it only takes a couple of minutes to register – just visit the website for more information. Another way we’re making it simple for you to manage your super!
SuperSeeker If you want to do some detective work of your own to track down lost accounts, the SuperSeeker facility on the Australian Taxation Office (ATO) website is a great resource – visit www.ato.gov.au/super
• Complete the online declaration
To register, you will need to provide your full name, date of birth and Tax File Number. You can then use the search tools to locate any super accounts the ATO can identify with your details, plus request a rollover to your current fund.
Then sit back and we will do the rest – you can even track the progress of your rollover through your MemberAccess account.
If you need any more help at any time, simply contact the NSF Super team.
• Use the search tool to select the other fund you are with • Include your member/account number for that fund • Select whether you would like to rollover the whole
amount or partial balance
Need a roadmap for your financial future? Sooner or later, we all have questions about our super and finances. And when it comes to helping our members make decisions about what options are right for them, we can call in the experts! The NSF Super team have partnered with Money Solutions to provide you with over the phone help from expert Money Coaches.
How can they help? Common questions that a Money Coach can help provide answers to include: • How much money do I need to retire?
Women facing huge savings gap Women are way behind in their retirement savings according to new research by Rice Warner, with a massive savings gap for working age Australian women of $383 billion. Commissioned by Women in Super, the research also shows that women are not currently in a position to contribute more towards their retirement savings either. While men aren’t off the hook, the savings projections are much worse for women, reflecting the income differences between the genders and time spent out of the workforce caring for children, with the research also aimed at identifying underlying issues and levels of engagement. There were approximately 1,500 women polled for the survey, which found the main reason women fail to make voluntary contributions is simply because they cannot afford it. 60% said affordability was a barrier and that any spare money was being directed to paying off debt.
• How long will my money last? • Could I do more with my super? • What insurance cover do I need?
And the cost? As a service to our valued members, we will pay the fees involved for the first piece of advice received on a super issue over the phone from a Money Coach^. Any additional expense will be discussed with you in advance and in most cases, some or all of the cost of obtaining help about super can be deducted directly from your NSF Super account.
Getting started Simply call the NSF Super team on 1800 025 241 to get started, and we will generally connect you directly through to a Money Coach. We can also arrange for face to face appointments for more complex matters. ^NSF Super will pay for the first piece of advice you receive on a single super issue over the phone.
Not ‘engaged’ The survey also showed that women aren’t particularly ‘engaged’ with their super – which means actively managing it – and that while older women are more likely to be engaged than their younger counterparts, the majority still don’t know what their retirement needs are. Another contradiction is that while the majority actively check their super balances each year, only 40% know what investment option their savings are in.
Is there a solution? While there needs to be a range of measures put in place to help close the gap, the clear message is to take control. Super savings are yours to support you in retirement, and there are plenty of things you can do to manage your nest egg. From using a range of tools and calculators available through the NSF Super website, to managing your investment options through MemberAccess or setting up a regular voluntary contribution. Of course, you may want some help to determine which options are right for your circumstances, which is where a Money Coach can help. Simply call the NSF Super team or visit the website for more details on how we can help. Source: SuperReview, April 2014
Super rates and thresholds for 2014/15 The Tax Office has released the key superannuation rates and thresholds for the 2014/15 year. From 1 July 2014, the key superannuation rates and thresholds include the following: • Concessional contributions cap - the cap has increased from $25,000 to $30,000 for the 2014/15 year. A higher cap of $35,000 applies to Australians aged 49 years or over on 30 June 2014. • Non-concessional contributions cap - the cap for 2014/15 will increase from $150,000 to $180,000. Under the bring-forward rules, the cap over three years from the 2014/15 year is $540,000. • Capital Gains Tax (CGT) cap amount - the CGT cap amount for 2014/15 is $1,355,000. • Superannuation co-contribution - the maximum entitlement for the 2014/15 year remains at $500. The lower income threshold increases to $34,488 and the higher income threshold increases to $49,488 for the 2014/15 year. • Superannuation benefit caps - the low rate cap amount (lump sum amount able to be withdrawn tax-free over a lifetime for those aged 55 and over) for 2014/15 is $185,000. • Superannuation Guarantee (SG) - Increases from 9.25% to 9.5%, with the maximum super contribution base for 2014/15 being $49,430 per quarter. For more information regarding these changes and how they may impact your retirement savings and plans, simply contact the NSF Super team to get started.
Your insurance can keep up with your changing life! You probably have Death and Total and Permanent Disablement (TPD) insurance cover on your NSF Super account. This means that if you pass away or become disabled and unable to work again, you or your beneficiaries can receive a lump sum insurance benefit, to financially help during this time of need. You can also apply for Income Protection insurance cover with NSF Super, which can pay a monthly amount to you if you are unable to work (even temporarily!) due to illness or injury. As a NSF Super member, with our help, you can get your insurance sorted and pay the premiums from your super account.
It’s important that you change your insurance cover to suit you as your life changes - have you experienced any of the following life events in the last year? • Marriage • Birth or adoption of a child • Taking out or increasing a home mortgage • Completing an undergraduate degree • Death of a spouse • Divorce • Becoming a carer of a family member • Child commencing secondary school • A salary increase of at least 15% If ‘Yes’, you can increase your existing Death & TPD cover by up to 2 units by answering one simple health question and providing proof of the life event. Contact the NSF Super team for help with: • Finding out what insurance cover you have with NSF Super and how much it is worth • Speaking to a Money Coach about how much insurance cover is right for you • Applying for extra cover when you have experienced one of the above life events • Reapplying for insurance cover if you have opted out or cancelled your cover in the past
eStatement As more and more of your super information is managed and available online, you can help us reduce paper usage and ‘go green’! You can choose to receive your annual super statement electronically and even this newsletter – plus, we already make our Annual Report available online only, unless you request a printed copy. Making your selection is simple – you can manage your communication preferences online through MemberAccess, by editing the ‘Personal details’ section. Alternatively, you can email or call the NSF Super team.
Genuinely fairer banking with ME Bank As a member of NSF Super, did you know you also have access to a range of simple and straightforward everyday banking products from ME Bank – the bank that only services eligible super fund and union members. ME Bank is a 100% Australian-owned bank. Established by industry super funds – the same people who brought you low-cost, no-commission super, ME Bank was proudly built to provide a genuine banking alternative – a fairer way to bank. All ME Bank’s products are straight forward, transparent
NSF Super in the community – Hunter Life Education
and low-cost – from home loans and personal loans to transaction and savings accounts. In fact, they’ve kept their standard variable rate home loan for eligible members below that of the ‘big four’ banks every month, of every year, since becoming a bank in 2001. ME Bank respects each and every one of its customers. Regardless of how much you earn or where you live, they treat their customers with care and understanding. ME Bank prides itself on real service. And because they appreciate the importance of your time, they’ll visit you at home or at work. To see how you could benefit from fairer banking call 13 15 63 or visit mebank.com.au
is to help develop generations of confident, inspired and healthy community members living to their full potential. For more information on the Hunter Life Education program, visit www.hunterlifeeducation.org.au
The NSF Super team were proud to support Hunter Life Education’s ‘Adopt-a-Class’ program this year. Through our involvement, the students of Charlestown South Public School were able to participate in an innovative and interactive drug and health education program that is delivered to over 30,000 kids in the Hunter region each year. Representatives from the fund, including current Chair, Kim McHugh attended the Edgeworth campus along with Healthy Harold, to welcome some of the classes. Each session is conducted with approximately 30 children, and the broader aim of Hunter Life Education
Contact Us 242 Pacific Highway (PO Box 42) Charlestown NSW 2290 Telephone: 1800 025 241 Facsimile: 1800 839 774 Email: enquiries@nsfsuper.com.au Website: nsfsuper.com.au NSF Nominees Pty Limited ABN 29 053 228 667 • AFSL 253129 Trustee of NSF Super (Nationwide Superannuation Fund) ABN 15 201 768 813
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This document contains general information only and has been prepared without taking into account your financial objectives, situation or needs. It may, therefore, not be right for you. Before you make any investment decision, we suggest you consult NSF Super’s Product Disclosure Statement and/or seek licensed financial advice. As at the time of compilation, the information contained in this document is correct and any estimates, opinions, conclusions or recommendations are reasonably held or made. Subsequent events may mean that the information becomes out-of-date and so, to the maximum extent permitted by law, we disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this document. The financial advice service available for NSF Super members, will be provided by Money Solutions Pty Ltd, AFSL 258145. Neither Money Solutions Pty Ltd nor its employees are representatives of NSF Nominees Pty Ltd, the Trustee of NSF Super. No commissions are paid by any party to any other party, for referring NSF Super members to Money Solutions Pty Ltd. NSF Nominees Pty Ltd does not accept liability for any loss or damage incurred by anyone using Money Solutions products or services.