In a survey conducted by the Association of Superannuation Funds of Australia (ASFA), less than 20 per cent of respondents considered the Age Pension or an income just in excess of it, to be sufficient¹.
Given the above statistic, you may want to ensure that your super goes the distance after you retire. A super fund can assist with making your money work harder for you, but what are some characteristics you need to consider when choosing a fund to manage your retirement savings?
Here are a couple of factors to look out for.
1) A fund with values
You’ve worked hard for decades, so you’d want to ensure that your retirement savings are invested with a super fund that you can trust.
Since 1981, Australian Catholic Superannuation has helped people who work in Catholic education, healthcare, aged care and welfare plan for their future. We assist our members based on the following values:
- Act with honesty and integrity
- Provide professional, respectful and compassionate service
- Continuously grow and develop our culture
- Encourage innovative thinking
- Empower and trust our people
- Act as one team.
We also integrate environmental, social and corporate governance (ESG) considerations into our investment management processes to help minimise our members’ exposure to financial risks associated with factors such as climate change, poor ethical and governance practices or exploitative labour practices. Members who wish to make a stronger statement about their belief in ESG may consider our Socially Responsible option, which is managed by Australian Ethical.
Read the Your Investment Options factsheet to find out more about this option.
2) A fund that helps you invest while generating a regular income stream
An account-based pension is a regular income stream from the superannuation that you’ve accumulated over your career. Some benefits of choosing an account-based pension include:
- Tax savings - Once you reach 60, the pension payments from your account-based pension are tax-free
- Tax-free investment earnings
Australian Catholic Superannuation offers two types of account-based pension options:
- RetireSmart is for members who do not wish to choose their investment mix. It invests your money in two buckets: Growth and Cash. The income generated from the assets in the Growth bucket (for example, shares and property) is transferred to the Cash bucket, which is used as the source of your pension payments. Using this approach focuses on generating a consistent stream of income during your retirement, with the goal of making the account balance last as long as possible.
- RetireChoice allows members to choose an investment mix that meets their objectives. Australian Catholic Superannuation offers a choice of 13 investment options, ranging from aggressive to very conservative. Find out what are some of the factors you should consider when making a choice about your investment option.
Download the Product Disclosure Statement for more information about RetireSmart and RetireChoice.
3) A fund that helps you transition to retirement
If you are not ready to fully retire and have met your preservation age, you may like to consider a transition to retirement (TTR) pension, which allows you to access some of your super while you keep working. Some benefits of using a TTR strategy include:
- receiving tax-free pension payments if you are over 60 years old. If you are under 60 years old , your pension payment is taxed at your marginal rate less a 15% offset to support reduced working hours
- paying off debt faster, or commencing a strategy to reduce death benefits tax or increase the future amount of Age Pension that you and your partner may receive as a couple
- potentially increase the amount of tax deductible contributions you make to super.
Contact one of Australian Catholic Superannuation’s financial advisers to find out if a TTR pension is suitable for you.
4) A fund that widens your knowledge about managing your finances
Australian Catholic Superannuation understands that different people have different preferences when it comes to learning, so we offer various ways for you to learn more about making your money work harder for you. Choose one or several of the following resources that suit you:
- Simple-to-understand articles
- Webinar sessions at no additional cost to members
- Educational videos
- Financial advice delivered by an award-winning team.
We also have a range of calculators to assist with your insurance, Age Pension and budgeting needs.
Need to speak to someone about your finances?
If you are a member of Australian Catholic Superannuation, we offer advice on your superannuation investments, contributions or insurance at no additional cost through our limited advice team. Alternatively, we also offer comprehensive advice that looks at a broader range of topics including your finances outside of superannuation and those of your partner, if applicable. Find out more about our different types of financial advice services or make an appointment today.
Any advice contained on this webpage is of a general nature only, and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information on this webpage, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek independent financial advice if you are unsure of what action to take.
¹The Association of Superannuation Funds of Australia (ASFA), Community support for compulsory superannuation May 2019 (Accessed 28 January 2021).