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Your guide to a better
retirement
July 2014
Inside
AA Are you ready to retire?
AA What will your retirement look like?
AA Planning your retirement
AA How UniSuper can help
AA Len and Janice Kelly. Len previously worked at The University of Melbourne and Janice was at MacCallum
Research Institute.
This booklet has been prepared by UniSuper Management Pty Ltd
(the Administrator) on behalf of UniSuper Limited (the Trustee).
This information is of a general nature only and does not take into
account your individual objectives, financial situation or needs.
Before making any decision about your UniSuper membership, you
should consider your personal circumstances, the relevant Product
Disclosure Statement (PDS) for your membership category, and
whether to consult a licensed financial adviser. If you would like
to download a copy of a PDS visit www.unisuper.com.au/productinformation or call us on 1800 331 685 to request a paper copy
(free of charge).
UniSuper Advice is operated by UniSuper Management Pty Ltd,
which is licensed to provide financial product advice.
Neither UniSuper Management Pty Ltd nor UniSuper Limited
accepts any liability whatsoever for any decision that is made
on the basis of or in reliance of the information contained in this
booklet.
The information contained in this booklet is current as at
September 2013 and any subsequent changes in the law or policy
have not been incorporated.
Fund: UniSuper
ABN 91 385 943 850
Administrator:
UniSuper Management Pty Ltd
ABN 91 006 961 799
AFSL No. 235907
Trustee:
UniSuper Limited
ABN 54 006 027 121
This booklet is jointly published by UniSuper Management Pty Ltd
and UniSuper Limited.
© UniSuper Limited 2014
SuperRatings, an industry benchmarking and research company, has
awarded UniSuper a Platinum rating for its Flexi Pension product.
SuperRatings does not issue, sell, guarantee or underwrite this product.
Go to www.superratings.com.au for details of its ratings criteria.
Your guide to a better retirement
1
contents
Contents
Are you ready to retire?
Congratulations3
How much do you have?
4
How much will you need?
4
How long do you need your money to last?
7
Ways to make your money go the distance
8
Keeping active in retirement
11
Are you eligible for the Government
Age Pension?
12
Other government benefits
13
Planning your retirement
When can you access your super?
14
How much tax will you pay?
16
You’re ready to retire – what are your
options?18
Plan your retirement with UniSuper
20
How UniSuper can help
Advice and super
22
We’re here to help
24
Your retirement checklist
25
2
AA Ian Harrison and his wife Derithe. Ian previously worked at RMIT.
Your guide to a better retirement
3
Congratulations
Congratulations
You’ve reached an important milestone in your life journey. This booklet is designed to
help you navigate the next stage of your life with confidence.
You’ve worked hard throughout your career.
No doubt you have a wealth of achievements and
memories to show for your efforts – as well as
your savings.
Wherever you want to be and whatever you want
to do in retirement, chances are your super will
form a large part of your retirement income.
We are committed to supporting you beyond
your working life by offering you the right
information to help you prepare for and enjoy
your retirement.
Thinking about your future is a very exciting
time, but your future is likely to be a lot more
enjoyable if you take the time to plan your
finances.
4
What will your life
after work look like?
Do you plan to travel, spend time with family and friends, or perhaps further your
education and pursue your other interests?
How much do you have?
How much will you need?
No matter how you see yourself, setting a budget
can help.
Everyone is different, and everyone has a
different idea of a ‘comfortable’ retirement.
Before you can start planning your retirement
you should find out how much super you
currently have. The easiest way to do this is to
check your latest benefit statement, or log into
MemberOnline through our website. If you have
more than one super account, don’t forget to
check all of them. You can read more about this
on page 24.
Perhaps your idea of comfort is having an
overseas holiday each year, eating out several
nights a week, and going to the cinema regularly.
Or perhaps you’d be happier having more time to
spend with your loved ones and staying closer to
home.
After looking objectively at the spending
patterns of many Australians, the Association
of Superannuation Funds Australia (ASFA)
has created a budget as a starting point for both
singles and couples to model their retirement
living costs on. These figures are updated
quarterly to reflect inflation.
Your guide to a better retirement
5
What will your life after work look like?
ASFA’s retirement budget and living standard (June quarter 2013)
Weekly living cost
Modest
lifestyle
Single Couple
Comfortable
lifestyle
Single Couple
Housing (ongoing only)
$61.88
$59.40
$71.72
$83.14
$.................................................
Energy
$41.14
$54.64
$41.75
$56.72
$.................................................
Food
$74.31
$153.92
$106.15
$191.07
$.................................................
Clothing
$17.96
$29.15
$38.87
$58.30
$.................................................
Household goods and services
(includes hairdressing and
personal care)
$26.21
$35.54
$73.73
$86.37
$.................................................
Health
$38.80
$74.89
$76.98
$135.87
$.................................................
Transport
$93.64
$96.29
$139.54
$142.20
$.................................................
Leisure
$71.04
$105.83
$215.27
$295.00
$.................................................
Communications
(phone, internet)
$9.49
$16.61
$26.08
$33.19
$.................................................
Total per week
$434.46
$626.27
$790.08
$1,081.76 $.................................................
Total per year
$22,654
$32,656
$41,197
$56,406
You
$.................................................
These figures assume you own your own home and relate to expenditure by the household. This can be greater than household income after income tax, where
there is a drawdown on capital over the period of retirement. Single calculations are based on female figures. Source: ASFA Retirement Standard June quarter
2013.
What do these figures mean?
ASFA’s retirement budget suggests a single
person needs around $41K each year to live a
‘comfortable’ lifestyle and a couple needs around
$56K each year.
According to ASFA, a ‘modest’ retirement lifestyle
involves more spending than the Government
Age Pension allows (see page 12), but it still only
allows you to afford fairly basic activities.
However, a ‘comfortable’ retirement lifestyle
for a healthy retiree would generally allow you
to be involved in a broad range of leisure and
recreational activities. It would help give you a
good standard of living by being able to purchase
things such as private health insurance, a
reasonable car, good clothes, a range of electronic
appliances, and domestic and occasionally
international holiday travel.
It’s important to be aware this is a guide only,
and doesn’t factor in any of your own needs or
wants. To help work out your retirement budget,
use the ‘You’ column on the table above to record
estimates of your living costs.
Use what you already spend to guide you, but
remember your retirement lifestyle could change
in a number of ways. For example, you may
not need to factor in commuting costs or work
clothing expenses, but with more time on your
hands you may decide you’d like to spend more on
regular leisure activities, like going to the cinema
or trips away.
Other things you might want to consider about
your ideal retirement:
Whether you have anyone dependent on you,
this may include children.
Any big one-off expenses you may have, like a
new car or home.
Whether or not you want to leave money for
your loved ones to inherit.
Debts and the current value of your assets.
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6
Your guide to a better retirement
What will your life after work look like?
Get advice on your retirement plan
Like many people, you probably have a
certain amount of money that needs to last an
indefinite amount of time.
To make an appointment to see a financial
adviser or for more information, call UniSuper
Advice on 1300 331 685.
That’s why planning for retirement is so
important and why we recommend that you
get advice from a qualified financial adviser
who can tailor a plan to your individual
circumstances and financial needs.
UniSuper Advice is operated by UniSuper Management Pty Ltd (ABN 91
006 961 799, AFSL No. 235907) which is licensed to provide financial
product advice.
ADVICE
Super and retirement calculator
Use our Super and retirement calculator
to see if you’re on track with your
retirement savings.
This calculator can project your potential
retirement savings, and shows you if there
is a gap between how much super you may
need in retirement and how much super
you’re likely to have.
www.unisuper.com.au/calculators
AA Peter Murphy is an Emeritus Professor at La Trobe University’s School of Management.
He works two days a week and is transitioning into retirement with a UniSuper Pension.
7
How long do you
need your money
to last ?
When you decide to retire, you want to make your super (and other savings) last as
long as possible.
Whether or not your savings can go the distance
depends on a range of things, including your
spending habits and expenses. Hopefully the
ASFA retirement budget and living standard
table on page 5 has helped give you an idea of
how much you might need.
Your life expectancy is also very important to
consider, as well as your partner’s (if you have
one), because you will need to figure out roughly
how long your retirement benefit will need
to last.
The table below shows life expectancy data from
the Australian Government Actuary based on
gender and current age. When you’re planning
your retirement, you might like to use this table
for an estimate of how long you may need your
savings to last.
Did you know?
Since the late 1800s, life expectancy for
Australians has increased by more than
30 years.
Even though many of us will retire later
than previous generations, an increasing
number of Australians will spend more
than 30 years in retirement.
Average Australian life expectancy
Your current Age you’re likely to
age (years)
live until (rounded
to closest whole
year)
Female
Male
55
86
82
60
86
83
65
87
84
70
87
85
75
89
86
80
90
88
Source: Australian Government Actuary, Australian Life Tables 2005/07.
Figures are rounded to the nearest whole year.
This table is a guide only and does not take
family history, your current state of health, and
other personal or financial factors into account.
8
Ways to make
your money go the
distance
If you’ve realised there is a shortfall between your current super savings and what you’ve
estimated you’ll need in retirement, you still might have time to address this gap. There
may even be some advantages in delaying your retirement.
1. Work longer
If you continue to work, your employer is
required to provide you with the minimum level
of superannuation support (currently 9.5% of
your ordinary time earnings).
Some employers might also offer flexible
working arrangements, like reduced hours or
project work, which may provide the best of both
worlds. This may give you the extra time needed
to pursue the extra-curricular activities you love
while building your savings.
You might also find that you’re able to benefit
from a Transition to Retirement (TTR)
arrangement.
Transition to Retirement
The TTR rules let you access some of your super
as a non-commutable income stream while
you‘re still working (if you meet certain criteria).
If you qualify, there are two main ways you
could benefit from a TTR arrangement:
1. Keep working and boost your super
Maintain your current level of work.
Access a pension income.
Salary sacrifice increased amounts (subject
to contribution caps limits) into your super.
This strategy can even be structured so there’s
no effect on your take-home income.
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2. Ease into retirement
Gradually reduce your work hours.
Supplement your income from your super
benefits.
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Just how a TTR strategy would work for you
depends on several factors, including your
personal situation and your financial needs, as
well as the type of UniSuper membership you
have. Before making any decisions we strongly
recommend that you get advice from a licensed
and qualified financial adviser.
This is a summary explanation of a TTR
strategy. For more details, refer to our
Transition to retirement fact sheet and the
Your guide to pensions – Flexi Pension product
disclosure statement, both available at
www.unisuper.com.au, or speak to a licensed and
qualified financial adviser.
Your guide to a better retirement
9
Ways to make your money go the distance
2. Make extra contributions
Concessional (before-tax) contributions
Contributing to your super from before-tax
salary may potentially reduce the amount of
income tax you pay, while giving your super
savings a boost. This is also known as salary
sacrifice and is usually organised through your
employer’s payroll department.
Before-tax contributions of up to $30,000 (or
$35,000 if you are 49 or older on 30 June of the
previous financial year) in the 2014/15 financial
year will only incur 15% contributions tax.
Any concessional contributions in excess of
your cap will be taxed at your marginal rate.
You may apply to have your excess concessional
contributions released to you (after the 15%
contributions tax ). You will be entitled to a
non-refundable offset equal, which will be 15%
of your excess concessional contributions. This
will reduce your tax liability to account for the
contributions tax paid by your super fund. You
may, however, be required to the pay a notional
interest charge to account for the deferral of tax.
If your income and relevant concessionally
taxed super contributions exceed $300,000 for
an income year, you may be subject to additional
15% tax on your super contributions.
For more information on how your super is
taxed, please refer to the booklet relevant
to your membership, available at
www.unisuper.com.au:
How your super is taxed (for Accumulation 1
and Spouse Account members)
Defined Benefit Division and Accumulation 2
Product Disclosure Statement
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After-tax contributions
You can also make voluntary member
contributions to your super, after income tax
has been deducted from your salary. These are
called non-concessional (personal after-tax)
contributions.
You can contribute up to $180,000 a year in
after-tax contributions. If you exceed this
limit your excess contributions will be taxed
at 49%. If you’re under 65, you may be able to
average your contributions over a period of three
years by bringing forward the next two years
of contributions. Certain conditions apply so
make sure you check that you are able to use this
strategy.
Spouse contributions
You can contribute to a UniSuper Spouse
Account on behalf of your spouse. You may
benefit from an 18% tax offset on spouse
contributions of up to $3,000 if your spouse
does not work, or earns a low income. To do this
you must meet certain conditions – refer to the
information about super spouse contributions
on the ATO website for details.
Important note
The government imposes limits, known as
contributions caps, on the total contributions
you can make each year to your super. If you
exceed these caps you may be required to pay a
higher rate of tax.
If you are a member of more than one super
fund, the contributions made to all the funds
will be added together and count towards the
caps. For more information see our website.
10
Your guide to a better retirement
Ways to make your money go the distance
3. Consolidate your super
Combine your super with your
UniSuper account in three steps:
If you’re like most Australians, you probably
have more than one super account. If this is
the case, combining your other super into
your UniSuper account could make sense.
Having just one super fund means just one set
of fees which may ultimately lead to a larger
account balance.
1. Gather details about your other super
funds.
This includes membership number, the
fund’s ABN or Unique Superannuation
Identifier (USI) and address. You should
be able to find these details on your latest
communication from them.
You should check with your other fund/s if any
exit or withdrawal fees apply, and whether
you will be giving up any benefits such as
insurance cover.
2. Complete a Combine my super
(rollover) form
You can find this at www.unisuper.com.au.
3. Provide certified identity documents
Everything you need to know about proof of
identity, including when it may be required
and who is authorised to certify your
documents can be found in the Combine my
super (rollover) form.
11
Keeping active in
retirement
When you’re no longer working, you have more time to travel, pursue your interests fully
and enjoy a slower pace of life. But it can also be challenging to adjust to the loss of a stable
routine and sense of achievement and purpose that work provides. Here are some top tips
for making the most of your retirement.
Keep active
We all know exercise is one of the best things we
can do for our physical and mental health—and
getting older is no excuse for slowing down! The
key to sticking to it is finding an activity you
enjoy. Cycling, swimming, gym, golf … there are
many ways to stay active. Need some help to
stay motivated? Take a class at a nearby leisure
centre, join a local walking club, or try tai chi in
the park.
Share your knowledge
You’ve acquired a lifetime of wisdom and
experience, so why not give back to the
community by volunteering? Here are some
ideas: run an adult education course in your
area of expertise at a local community centre,
teach English to new Australians, give talks to
schoolchildren, or be a big brother or big sister to
a young person. Want some more ideas? Browse
volunteering opportunities at www.govolunteer.
com.au.
Take up a hobby
Retirement is the ideal opportunity to pursue
your passion. And by joining an association
or club in your area of interest, you can also
expand your social network by meeting and
sharing ideas with like-minded individuals.
With thousands of clubs in Australia across a
range of categories—from astronomy and jazz
to photography and ten pin bowling—you’re
likely to find something for you. Go to www.
clubsofaustralia.com.au to find out more.
Keep in touch with your university
community
Just because you’re retired, doesn’t mean
you’re no longer a member of your university
community. You can get involved by
investigating Senior Honorary (Research)
Fellowship opportunities, joining an
alumni association to catch up with former
colleagues and students, or signing up with
your university’s sports club to participate in
recreation and fitness activities. Contact your
university’s alumni to find out how you can stay
in touch.
Go back to school
Always been interested in a particular subject
but never had the time to explore it further? It’s
never too late to go back to school! So why not
keep your mind active by signing up for a course
at your university, adult education centre or
online? You can also try the University of the
Third Age (www.u3auwa.org), an international
organisation that offers an extensive course
program for people aged 50 and older.
12
Are you eligible for
the Government
Age Pension?
The Australian Government, through Centrelink, offers eligible Australians a social
security benefit known as the Age Pension.
To qualify for the Government Age Pension,
you must first meet the age and residence
requirements. If you’re eligible, Centrelink will
work out the pension rate you can receive, which
may be reduced depending on your income and
the assets you own.
The table below shows the maximum
Government Age Pension payments to
eligible singles and couples as at March 2013.
These figures are updated on 20 March and
20 September each year.
Status
Pension rate per
fortnight
Single
$733.70
Couple
$553.10 each or
$1106.20 combined
Couple separated
due to ill health
$733.70 each
* These amounts exclude the Pension Supplement and Clean Energy
Supplement which pensioners may receive as an additional payment
to the base pension. Source: Department of Human Services website,
September 2013.
On page 5, we had a look at ASFA’s suggested
weekly expenditure for a retiree, depending on
the type of lifestyle wanted.
A ‘modest’ lifestyle, affording only basic
activities, will cost a single around $868.44 a
fortnight, and a couple around $1,250.52
a fortnight.
Both of these suggested amounts are still more
than the maximum Government Age Pension
payment rate.
For more on the Government
Age Pension and the benefits you
may be eligible for as a retiree, please
download A Guide to Australian
government payments from
www.humanservices.gov.au.
Your guide to a better retirement
13
Are you eligible for the Government Age Pension?
Other government benefits
Even if you don’t qualify for the Government Age Pension you may still be able to access some other
handy government benefits.
Card type
Benefit
Pensioner
Concession
Card
If you qualify for the Government Age
Pension, you’ll receive a Pensioner
Concession Card which provides discount
prescription medicines under the
Pharmaceutical Benefits Scheme (PBS),
and reductions on property and water
rates.
Commonwealth
Seniors Health
Card (CSHC)
If you don’t qualify for the Government
Age Pension, but are still of pension age,
you might be able to get some concessions
on healthcare and travel costs with the
CSHC.
Seniors Card
If you’re aged 60 or older, this free card
entitles you to a host of business and
government discounts across Australia.
With your Seniors Card you can:
travel on public transport at
concession rates,
watch films at reduced prices, and
enjoy discounted meals, travel,
accommodation, and leisure
activities.
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If you want to travel, you can even
use your card in New Zealand at
participating ‘SuperGold’ businesses. It’s
everyone’s way of saying thanks for your
contributions over the years.
Find out more
www.humanservices.gov.au
www.seniorscard.com.au
14
When can you access
your super?
There are generally no rules about when you can retire. In fact, you can retire whenever
you like, if you’re financially able to. However, super is a long-term investment and the
government has placed restrictions on when you can access it.
You’ll only be able to access your super if you
have satisfied a condition of release, which you
can read about on the opposite page.
Generally, your super benefit must be preserved
in the super system until you retire from
the workforce on or after reaching your
preservation age.
Your preservation age varies depending on when
you were born, as shown:
Your date of birth
Your
preservation
age
before 1 July 1960
55
1 July 1960 –
30 June 1961
56
1 July 1961 –
30 June 1962
57
1 July 1962 –
30 June 1963
58
July 1963 –
30 June 1964
59
1 July 1964 or after
60
Preservation rules
Exactly when you can access your benefit
depends on its ‘preservation status’ under the
government’s preservation rules.
Preserved benefits
From 1 July 1999, all member and employer
contributions made into super and all
investment earnings must be preserved.
Generally, you cannot access preserved benefits
until you have satisfied a condition of release.
Restricted non-preserved benefits
Generally, restricted non-preserved benefits can
be accessed when you terminate employment
with an employer who had contributed to
UniSuper on your behalf. Restricted nonpreserved benefits can also be accessed if you
meet one of the conditions of release.
Unrestricted non-preserved
benefits
Unrestricted non-preserved benefits can
generally be accessed at any time, regardless
of your age, employment situation or financial
position. This is generally made up of benefits
that you’ve already become entitled to, but
voluntarily decided to keep within the super
system (for example, if you’ve already reached
age 65 but you’re still working).
Your guide to pensions – Flexi Pension
15
When can you access your super?
What are the conditions
of release?
You must meet a condition of release before
your preserved benefits can be withdrawn
from a super fund. The conditions of
release include:
permanent retirement from the
workforce on or after reaching your
preservation age,
termination of employment after you
reach age 60,
attaining age 65,
permanent incapacity,
terminating employment with an
employer who contributed to UniSuper
on your behalf and your benefit is less
than $200,
compassionate grounds, or
death.
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Refer to the ATO website for further
details of when you can access your super
benefit.
AA Roger Brewer, previously at The University of Technology Sydney.
16
How much tax
will you pay?
If you’re thinking of withdrawing some or all of your super benefit, or rolling your super
from one fund to another, it’s important to consider the tax implications before you make
your decision.
Tax on your benefit
You may have to pay tax when you withdraw
your benefit from the Fund, depending on
your age. UniSuper will normally deduct any
applicable tax before paying your benefit.
Age 60 or older
Your benefit will generally be received tax free,
if it is paid in the form of a lump sum.
Under age 60
Tax may be deducted from your benefit.
The amount of tax payable will depend on
a number of factors including your age and
the components of your benefit. Your benefit
generally comprises a tax-free and taxable
component.
When you make a lump sum withdrawal, the
amount you receive will be drawn down from
your tax-free and taxable components in
proportion to the amount of each component in
your benefit. No tax is payable on the tax-free
component irrespective of your age when you
receive it.
The taxable component will be taxed as follows
(for the 2014/15 tax year):
if you are below preservation age (i.e. you are
younger than 55), the taxable amount will be
taxed at 22% including the Medicare levy, or
AA
AA if you have reached your preservation age
(but are under age 60), the first $185,000
of your taxable component will be received
tax free and any amounts in excess of this
threshold will be taxed at 17% including the
Medicare levy.
Different tax rates apply if you take your
benefit as a pension, as well as to payments to
temporary residents and death benefits.
Additional taxation would apply if the taxable
component of your benefit contains an untaxed
element or if you haven’t provided us with your
tax file number.
Tax on rollovers
No tax is payable if you roll over your super
from one complying fund to another, unless
the rollover is from an untaxed source (such as
certain public sector super funds or an eligible
termination payment).
Get tax advice
How super is taxed is complex. Before you
access your benefit, we recommend you see a
registered taxation agent.
Your guide to a better retirement
How much tax will you pay?
For more information on how your
super is taxed, in particular how certain
amounts are taxed, please refer to the
How your super is taxed booklet or your
product disclosure statement available
at www.unisuper.com.au.
A Geraldine Cook, Associate Dean, Equity and Senior Lecturer (Theatre), Victorian College of the Arts,
The University of Melbourne.
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18
You’re ready to
retire ... what are
your options?
So you’ve reached your preservation age ... now what? Accessing your super isn’t as easy as
withdrawing money from your bank account. To make the right choice for your situation,
you should consider your options carefully.
1. Start a pension
Pensions, also known as retirement income
streams, can help you make your money last
longer. Various pension products are available
and most super funds offer them. See page 20 for
an overview of our pension products.
Benefits of a pension from a
super fund
Depending on the pension product you
may:
receive tax concessions,
continue to receive a regular income
conveniently paid directly into your
bank account,
make lump sum withdrawals (if
applicable) on top of your regular
pension payments,
receive an income stream that may
increase annually based on the
Consumer Price Index (CPI), if you
have an indexed pension,
have reversionary payments paid to
your spouse if you die, and potentially
improve your eligibility for the
Government Age Pension (see page 12),
as Centrelink generally treats income
streams more favourably
than accumulated amounts retained
in super.
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2. Access your benefit as a lump
sum withdrawal
If you have permanently retired or met another
condition of release, you can generally access
part or all of your super benefit as cash.
This option may appeal to you if you have plans
for a large one-off purchase, such as a holiday or
new car.
To find out more about accessing some or all
of your benefit, see page 14 or call us on
1800 331 685.
3. Take your benefit as a pension
and a lump sum
You may be able to take your UniSuper benefit
as a combination of a pension and a lump sum,
subject to preservation rules and other eligibility
criteria.
For example, you may like to put half your
benefit into an indexed pension (like our Single
Life Indexed Pension), some into an allocated
pension (like our Flexi Pension), and also
withdraw a lump sum of money.
Of course, if you’re not ready to start a pension
yet, you could leave your benefit in your
UniSuper account.
Your guide to a better retirement
You’re ready to retire ... what are your options?
AA Professor Ben Adler, Monash University.
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Plan your retirement
with UniSuper
UniSuper has three pension products you can choose from. Each has varying features to
suit your needs.
Flexi Pension
Indexed Pensions
Features:
Choose your level of annual pension income
(subject to an age-based minimum set by the
government) (and a maximum if the pension
is under the Transition to Retirement rules see page 8).
Choice of fortnightly, monthly, quarterly,
six-monthly or annual payments made
direct to your nominated bank account.
Tax-free investment earnings.
Income payments which are currently tax
free if you are over age 60.
The ability to make lump sum withdrawals
of $2,000 or more at any time. (This doesn’t
apply if the pension is under the Transition
to Retirement rules—see page 8.)
A choice of investment options to suit your
risk profile.
The option to make either a reversionary,
binding or preferred beneficiary nomination
to nominate who you want to receive your
pension balance should you die.
UniSuper offers two types of Indexed Pensions:
Commercial Rate Indexed Pension (Single
Life and Joint Life), and
Defined Benefit Indexed Pension.
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Things to consider:
May not provide a pension for the rest of
your life (payments continue until the
balance of your pension account reaches
zero, or until you close your account or you
die).
Requires a minimum investment of
$25,000.
Once a Flexi Pension is established you can’t
contribute any additional amounts into the
pension account.
Subject to investment performance.
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The payment of Commercial Rate and Defined
Benefit Indexed pensions is subject to the risk
that the Defined Benefit Division (DBD) will not
have sufficient assets to meet all obligations to
DBD members.
These risks are explained in the Your Guide
to pensions product disclosure statement for
CommercialRate Indexed Pension or Defined
Benefit Indexed Pension, or you can read more
at www.unisuper.com.au/DBDupdate.
Commercial Rate Indexed Pension
Features:
A guaranteed minimum payment period
being the lesser of 10 years or your life
expectancy at commencement (rounded up
to the next whole number).
Indexation in line with the CPI on 1 July
each year.
Monthly payments for the rest of your life.
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Things to consider:
You’re generally unable to make lump sum
withdrawals.
Requires a minimum investment of
$25,000.
Doesn’t fluctuate according to the
performance of investment markets.
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Your guide to a better retirement
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Plan your retirement with UniSuper
Which pension is right for you?
Your decision about a UniSuper pension is important.
Consider your options carefully and work out what’s right
for you. This booklet gives a broad overview only. For more
information on your pension options, please read:
The Your guide to pensions product disclosure statement
for each of our pension products.
Transition to retirement fact sheet.
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These are available on our website or by calling us on
1800 331 685.
Before you make a decision, we recommend you speak to a
licensed and qualified financial adviser who can tailor a plan
to your individual needs.
AA Once you have started your Commercial
Rate Indexed Pension, you cannot
contribute additional amounts into the
pension account.
Commercial Rate Indexed Pensions and
the annual pension income (less an exempt
amount) count towards the Centrelink and
Department of Veterans’ Affairs assets and
income tests.
The key difference between a Joint Life and
Single Life Indexed Pension is what happens to
your pension in the event of your death.
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With a Joint Life Indexed Pension the
reversionary pension for your nominated spouse
will be 100% of the pension you receive. In the
event of your death, your nominated spouse will
receive the chosen pension amount for as long as
they live. If your spouse dies within the 10-year
guarantee period, the residual amount will be
paid to your spouse’s estate.
With a Single Life Indexed Pension, no residual
amount is payable in the event of your death,
unless you die within the 10-year guarantee
period, in which case the residual amount will
be paid to your estate as a lump sum.
AA Ian Harrison, previously at RMIT.
Defined Benefit Indexed Pension
A Defined Benefit Indexed Pension is only
available to Defined Benefit Division (DBD)
members who joined the Fund before 1 July
1998 and have remained a member of the DBD
continuously since then.
Features:
A 62.5% reversionary pension for your
surviving spouse. Additional benefits may
also be available for any dependent or
disabled children in the event of your death.
A pension which is 100% exempt from the
Centrelink/Department of Veterans’ Affairs
assets test. The annual pension payments
(less an exempt amount) count towards the
income test.
No minimum investment required.
Monthly payment for the rest of your life.
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Things to consider:
Once you have started your Defined Benefit
Indexed Pension, you cannot contribute
additional amounts into the pension
account.
There is no guaranteed 10-year minimum
payment period.
There is no residual amount payable if you
die without a spouse or dependent children.
No minimum investment required.
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Advice and super
UniSuper Advice is solely dedicated to helping you and your spouse with your finances.
This means you get personal financial advice from a team with in-depth knowledge of the
Fund and the higher education and research sector.
Our qualified advice team members
are knowledgeable about the sector and
environment in which you work. UniSuper
Advice is therefore well positioned to provide
personal financial advice appropriate for
your situation.
How we can help
You benefit from our advisers’ first-hand
experience dealing with defined benefit products
and their in-depth understanding of the Fund
and UniSuper’s products. Many of our advisers
have worked in the financial services industry
or as financial advisers for over 15 years. Our
advisers can provide face-to-face personal
financial advice on more than just your super.
Our advisers are all members of various
professional bodies which means that they are
required to continuously maintain and update
their financial knowledge. This ensures you
receive advice that’s relevant and up-to-date.
UniSuper Advice operates Australia-wide
providing phone-based and face-to-face advice.
Call UniSuper Advice on 1300 331 685
for an obligation-free complimentary
initial consultation.
1. General advice
This may be the right choice for you if you are
looking for general information about your
super or a UniSuper product or service. General
advice services can be provided through
seminars, newsletters, fact sheets, online tools,
web-based publications, or by telephone.
2. Phone-based advice
This is a better option if you need more personal,
tailored advice on specific issues related to your
UniSuper membership. Phone-based advice is
conducted conveniently over the phone, and is
suited to those with less complex needs. Our
advisers can help in a range of areas, including
investment options, insurance options and super
contributions (including salary sacrifice).
Your guide to a better retirement
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Advice and super
Fees
3. Face-to-face advice
This is the best option if you need advice on a
range of issues or have more complex needs. For
face-to-face advice, one of our advisers will meet
with you to determine your needs and goals and
ways to assist you. Your adviser will prepare a
detailed, written personal financial plan for you.
Contact UniSuper Advice
Call 1300 331 685
Webwww.unisuper.com.au/advice
Emailadvice@unisuper.com.au
ADVICE
General advice is provided at no additional
charge to UniSuper Fund members. Personal
phone-based advice and face-to-face advice
are provided at either fixed or hourly rates,
depending on the extent of your requirements.
After assessing your needs during your initial
consultation, your adviser will provide you with
a quote detailing any potential fees before you
decide to proceed. You can learn more about
UniSuper Advice fees in our Financial
Services Guide.
UniSuper Advice is a financial planning service available to UniSuper
members and their spouses through UniSuper Management Pty Ltd (ABN
91 006 961 799 AFSL No. 235907). UniSuper Management Pty Ltd is
licensed to provide financial product advice.
AA Roger Brewer, previously at The University of Technology Sydney.
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We’re here to help
Online
www.unisuper.com.au
Check out our calculators –
www.unisuper.com.au/calculators
Our online calculators let you use your own
details to explore different financial scenarios,
and give you information to help you plan your
future.
Retirement adequacy calculator
See if you’re on track with your retirement
goals.
Calculate how much income you are likely to
need in retirement.
See how you can give your super a boost.
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Pension Income calculator
Calculate how long you could make your
money last in retirement.
Compare outcomes for different
investment options.
Explore scenarios using different specified
income levels.
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Access your account
MemberOnline is the secure and personalised
section of the UniSuper website, giving you
online access to your UniSuper account. With
MemberOnline you can:
check your account balance,
update your personal details, and
compare UniSuper to other funds.
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To register for MemberOnline visit
www.unisuper.com.au/memberonline
Over the phone
1800 331 685
To talk to one of our friendly and helpful
Member Services Consultants please call us on
1800 331 685 between 8.30am and 5.30pm
Melbourne time, Monday to Friday.
If you are calling from outside Australia, please
phone +61 3 9910 6290.
Face to face
around Australia
Attend a seminar
We offer retirement and financial planning
seminars to all members and their family
members – both on and off campus. These
seminars cover a range of topics including:
AA the best ways to give your retirement
savings a boost
AA what happens to your UniSuper benefit
when you retire or leave your employer
AA UniSuper’s pension options and other
retirement income considerations.
To find a seminar near you, visit
www.unisuper.com.au/members/seminars
and register to attend.
Your retirement
checklist
Work your way through our handy checklist to see if you’re on track with your
retirement plans.
A m I clear on when I can access my super, and how long it will last me in
retirement?
Have I found and combined all of my super accounts?
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hould I consider making additional contributions into
my super?
Could I consider a transitioning to retirement strategy?
Have I got a plan? Do I need professional financial advice to help me ensure
my plan is on track?
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m I eligible for the Government Age Pension, or any other benefits?
Do I understand what happens to my entitlements when
I die?
Have I nominated my beneficiaries and considered whether it should be
binding or non-binding?
Have I got an up-to-date will?
CONTACT US
Helpline
1800 331 685
Website
www.unisuper.com.au
Email
enquiry@unisuper.com.au
Fax
+61 3 9910 6141
Address
UniSuper
Level 35, 385 Bourke Street
Melbourne VIC 3000
Australia
Printed on an environmentally responsible paper.
UNIS000102 0813