SuperInformedFEBRUARY 2019

On the rise

INVESTING IN RETIREMENT P17

CAREERPIVOTS P16

GIFTING YOUR DIGITAL LIFE P19

SHARE HOUSING IN RETIREMENT P18

PAGE 14: SENIOR LECTURER DR DAVID TUFFLEY FROM GRIFFITH UNIVERSITY TELLS US, THE REALITY OF VERTICAL RETIREMENT LIVING IS CLOSER THAN WE MIGHT THINK

VERTICAL RETIREMENT LIVING

The silver-lined cloud on the horizon

Five things we know you've been

thinking about

Advocating for your interests

PAGE 10: THE TRENDING TOPICS FROM OUR ANNUAL 'IN RETIREMENT' SEMINAR

PAGE 12: READ ABOUT OUR LATEST POLICY AND

ADVOCACY ACTIVITIES

PAGE 7: DATA AND CLOUD SERVICES MEET ENVIRONMENTAL,

SOCIAL AND GOVERNANCE

TransurbanHave you ever taken the M1 Eastern Distributor or Lane Cove Tunnel in Sydney? Or used CityLink in Melbourne to get to the airport? They’re just three of 14 toll roads in Transurban’s portfolio—one of UniSuper’s major investments. Toll roads typically operate a business model supported by strong market positioning, resilient demand and inflation-linked price increases. These investments can generate attractive earnings and dividend yields that are sustainable over the long term.*

THE TOP THREE HAPPIEST

COUNTRIES

RADAR

Got a story? We love hearing about what you’re doing and so do our readers! Drop us a line at superinformed@unisuper.com.au if you’d like to be contacted for a member profile in the future, or to share news of your research.

TH INKERS TO WATCH

ENVIRONMENT

Prof. Juliet Willetts from the University of Technology Sydney has a PhD in environmental engineering and is a water, sanitation and hygiene expert committed to alleviate poverty. She was recognised for influencing policy and practice through her research, evaluation and consultancy.t @UTS_WASH

INDIGENOUS STUDIES

Prof. Megan Davis from the University of New South Wales isa Cobble Cobble Indigenous woman from the Barrungam nation in south-west Queensland. Prof. Davis is the first Aboriginal Australian elected to a United Nations body, as Australia’s representative on the UN Permanent Forum on Indigenous Peoples. t @ILC_NSW

ENGINEERING

Prof. Sandra Kentish from the University of Melbourne was considered one of Australia's most innovative engineers by Engineers Australia in 2017. Prof. Kentish is also an investigator within the Australian Research Council Dairy Innovation Hub, where she's examining a novel approach to addressing wastewater issues.t @engunimelb

Finland takes soak

time seriously. There are an estimated two million saunas in the country with a population of 5.3 million. Finland also had the happiest immigrants, a special focus of this year's report.

Norway is a premier

destination to view the dancing lights of the aurora borealis. In ancient times, people believed the glowing lights were sent from the gods.

Denmark the home of

LEGO, rounds out the top three with their stylish design aesthetic, their focus on family and access to free health care and education.

UPFRONTHave you ever been on a road trip around Australia? Take a tour of some of our assets around the nation.

Karrinyup Shopping CentreOut and about in Perth and need supplies? Pop over to Karrinyup Shopping Centre. About 12km from the CBD, it’s what we refer to as one of our ‘fortress assets’. We’ve had a strong focus on retail property investments for a number of years now, and Karrinyup is a great example of that.

Adelaide AirportHeading to the Barossa Valley? If you arrive through Adelaide Airport, it might interest you to know that we were one of the founding investors when Adelaide Airport Limited (AAL) was privatised in 1998. Airports are attractive assets with built-in consumer demand and limited competition—providing investors with a long-term, stable income.*

Axicom GroupSharing a holiday selfie or staying in touch with the fam while you’re away? You probably need good reception for that. Axicom has about 1,800 wireless communications towers across Australia, providing services and towers to mobile network operators including Telstra, Optus and Vodafone. So if you’re on one of those networks, chances are UniSuper regularly helps you connect with the world.

“If you can manage your spending, buy now, pay later isn't so bad.”

For more information check out the list at worldhappiness.report

Here are a few of our members who made the Australian Financial Review's 100 Women of Influence list. See the full list at afr.com/100women.

Check out the latest episode of our Super Informed Radio podcast as we unpack the new wave of digital pay later services—listen now at unisuper.com.au/podcasts or through any good podcast app.

The proportion of Australians aged 65 and over. This is Australia's fastest growing age group, set to reach 22% by 2057.

* Past performance is not an indicator of future performance. The information provided is not a recommendation or endorsement of any named companies or investments and doesn’t take into account your individual objectives, financial situation or needs.

Upfront

1

Source: Australian Institute of Health and Welfare, 10 Sept 2018 https://bit.ly/2rNWa47

2 Super Informed February 2019 3

A word from our CEO

VERTICAL RETIREMENT LIVINGDr David Tuffley from Griffith University on the rise of high-tech retirement living. Page 14.

TH IS ISSUE

WELCOMEAmongst all the change our industry is experiencing, I’m very confident our future is bright

THE SILVER-LINED CLOUD ON THE HORIZON Data and cloud services meet environmental, social and governance (ESG) considerations. Page 7.

GETTING TO KNOW KEVINWHAT’S THE BEST THING ABOUT YOUR JOB?I love my job. I get to work in a dynamic organisation with an extremely strong focus on doing what’s best for our members. And I get to apply my expertise and experience to lead UniSuper and our great team—what could be better?

DO YOU HAVE A FAVOURITE PLACE IN THE WORLD?There are too many to name but firstly, my wife and I love Tasmania – we take a break there most years. There’s a Provincial Park in Canada called Silent Lake which holds a place in our hearts. And we love our 10 acre property an hour and a half from Melbourne’s CBD. I could go on, but that’s enough for now.

"Our Balanced option return over the ten years to 30 June 2018 was the highest of all Australian super funds.1"

Whether influenced by the Government, Productivity Commission or

the recent Royal Commission, the landscape in which we operate is evolving and the future is somewhat unknown. I expect to experience significant disruption in the short to medium term and I want our organisation to be ready, regardless of how minor or major it is.

So to prepare for future change and success, we’ll continue to review and improve our capabilities, efficiencies products and services. We’ll continue to manage the fund’s investments and strive to deliver strong long term returns for members. And we’ll also continue to enhance the experience that members and employers have with UniSuper. I’m excited by the enthusiasm and commitment of our staff to make us an even stronger organisation.

At UniSuper, we have the important responsibility of looking after the lifetime savings of thousands of individuals. As a result, we always aim to act in their best interests to provide them with greater retirement outcomes.

BRINGING MORE OF US TO YOUI’m excited at the continuing improvement in the quality and accessibility of our permanent UniSuper Centres and offices, which provide comfortable spaces for you to access our services and meet with a UniSuper Consultant or Adviser.

Since the August Super Informed edition, there are now UniSuper Centres at Curtin University, Edith Cowan University and La Trobe University. We’re excited to be opening a new UniSuper Centre at the Australian National University in Canberra followed by a retail space on the fringe of Adelaide’s CBD opposite the University of Adelaide. This brings us to 10 UniSuper centres nationwide, with more to come.

In addition, we’ve upgraded on-campus member spaces at Victoria University, University of Wollongong, Charles Sturt University in Wagga Wagga and the University of Melbourne.

These are in addition to our existing on-campus spaces at most universities and our centrally located member centres in Perth, Adelaide, Brisbane, Parramatta, Canberra, Melbourne, and Sydney.

I hope you enjoy reading this edition of Super Informed.

While the Royal Commission has exposed some very poor practices, conflicts of interest and legislative breaches within the financial services industry, UniSuper members can take comfort that their super is in good hands.

Please be assured that we will always do the right thing on behalf of our members and they can rightfully place their trust in us.

AWARD WINNING FUNDI’m pleased to highlight that UniSuper’s Balanced option return over the ten years to 30 June 2018 was the highest of all Australian super funds.1 And UniSuper’s fees continue to be amongst the lowest, and in many cases the lowest, of all Australian super funds.

Some of you may have also seen reports where UniSuper was ranked the best super fund in Australia by Stockspot.2 That news featured on a Today show episode on Channel 9. We’re thrilled to receive this unsolicited pat on the back for the work we do in providing our members with greater retirement outcomes.

But, even with all of our accolades and successes over the past 12 months, I can assure you that we’ll aim to lift the bar even higher over the next 12 months.

1 June 2018, SuperRatings Fund Crediting Rate Survey for the SR50 Balanced (60-76) Index. Past performance is not an indicator of future performance.

2 2018, Stockspot, 5th Annual Fat Cat Funds Report, http://bit.ly/2Um6U41

Member profile

5

You started your academic career around 10 years ago when you became the first full-time Indigenous

lecturer at your university. What did that mean to you at the time, and what does it mean to you now?

After working in policy for over 10 years, I decided to move from a professional role into an academic one because there was a need for Indigenous academic staff. I knew this because after studying there, I firmly believed it was very possible for us all to be academics.

Throughout most of my education, I found myself being the only or one of a few Aboriginal and Torres Strait Islander students so I’ve had to listen to many non-Aboriginal viewpoints on my people.

At home it was the complete opposite. I grew up attending family and community events that created a sense of belonging and identity being proud to make a difference for our people and to make a contribution for our community’s future. This was what our Elders worked towards whilst I grew up—to make a better future for our community and to keep the community together.

When I reflect upon what I’ve achieved since moving into academia, I find that I have become a role model for my family, my community and for many Indigenous and non-Indigenous students that I have taught.

MEET DR JULIE ANDREWSWe’ve come a fair way, but there’s still a way to go to reconciliation, according to Dr Julie Andrews from La Trobe University.

How important are role models?Role models are important to our

community. I grew up with strong women in my family, my mother was my most important role model. She instilled the importance of education upon me, I observed her enrolling into higher education courses, and she was awarded her Bachelor Social Work degree before I completed my degree.

My mother, grandmother, uncles and aunts all gave me the confidence to pursue my education and my career path. Most importantly, the support and pride that my brother and my cousins had in me going to university encouraged me to pursue my education as well. I didn’t realise this until I started lecturing.

What subjects do you teach, and what drew you to those subjects in particular?

I teach Aboriginal Studies as it relates to my discipline area of study—I have a degree in Aboriginal Studies and I majored in Sociology and Archaeology. I then completed an anthropology Honours degree in Aboriginal hip hop and identity.

When I first started teaching Aboriginal Studies I would ask—and still do—how many people have actually met an Aboriginal person before meeting me. Maybe about 15% put their hands up.

This told me that students would be graduating in careers that could place them working first hand with Aboriginal people, families, trauma, incarceration, social welfare,

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“When I first started teaching Aboriginal Studies I would ask how many people have actually met an Aboriginal person before meeting me. Maybe about 15% put their hands up.”

THE SILVER-LINED

CLOUD ON THE HORIZON

With the use of data and cloud services on the rise, what impact can we have on the environmental, social and governance (ESG)

considerations of the companies we invest in who operate in this space?

6 Super Informed February 2019

education and drug and alcohol areas. I felt it was my duty to produce graduates that understood the Aboriginal and Torres Strait Islander individual, community and the discrimination my people experienced because of stereotypes that exist for many of my people.

Indigenous Australians are always teaching others to understand their history and the world they live in. So I followed their path to ensure students know how Aboriginal history and culture shapes identity, families and communities today.

One of the subjects you teach is ‘On Country’. What does that mean, and what is its significance?

‘On Country’ has a few meanings, depending on the context. It’s identifying that the activity is related to Aboriginal lands, that the traditional custodial practices are at the forefront of the activity.

Students get to apply the academic learning alongside Aboriginal teaching. It’s taught by Aboriginal Elders and members of the Aboriginal community at Shepparton. The students have the opportunity to be immersed and taught by Indigenous people and engage with their knowledge. The bush becomes the classroom, students can talk to Elders, visit heritage sites, engage with issues of racism, policy, sport, education etc.

What have been the pivotal moments or cultural shifts in getting us closer to reconciliation?

Reconciliation was a movement giving people the chance to contribute to addressing the past of early settler relations and government policies aimed at Aboriginal people across Australia.

We saw The Stolen Generations become a human rights issue for this country; we saw ‘Sorry Day’ as a result of this awareness. We saw Australians become aware of policies that placed Aboriginal people at least four generations behind the rest of Australia.

Currently two large issues are being discussed around Australia that will set the course for the future of relations between Aboriginals and the government—the Uluru Statement and Treaty. The Victorian Government has made considerable negotiations with Victorian Aboriginal people on the matter of Treaty by legislating processes that will open negotiations and agreements between Victorian Aboriginal people and the government. This is a good model for other state and territory governments to explore. However, there is unfinished business to be addressed—the Uluru Statement.

These issues are studied by students, and their contributions will no doubt keep Indigenous issues alive. I really admire the cultural change in the younger generations who aren't afraid to tackle these issues.

What changes would you still like to see?

I would like to see less stress on Aboriginal people in their daily lives. I would like to see more Indigenous people educated. There are so many Indigenous medical doctors, surgeons, lawyers, sportspeople, nurses, researchers, academics, managers, engineers, entrepreneurs, the list goes on. I want to see this increase and every Indigenous family have at least three people with a university qualification. I want our role models to continue increasing—this would make a difference for economic independence for families.

WHAT KINDS OF CHANGES WOULD YOU LIKE TO SEE TO IMPROVE THE FINANCIAL LITERACY OF INDIGENOUS AUSTRALIANS?Indigenous business is now beginning to take shape across the country. I support development where Indigenous people do not have to rely on government welfare and can direct and manage their finances for the better. But for this to happen high unemployment, incarceration, poor health and better education outcomes need to be addressed to make such change.

FEATURE

9

Feature story

"NEXTDC’s customers—who control the electricity they use in the racks or data vaults they lease—will also soon be able to opt in to a similar program to offset their emissions."

Source: Data Never Sleeps 6.0, Domo, https://bit.ly/2l4kxo2

HOW MUCH DATA IS GENERATED EVERY MINUTE?

49,380 Photos are posted by Instagram users

2,083,333Snaps are shared by Snapchat users

120 New professionals join LinkedIn

4,333,560 Videos are watched by YouTube users

473,400 Tweets are tweeted by Twitter users

97,222 Hours of video are streamed by Netflix users

It’s no secret that we invest your hard-earned retirement savings in assets with potential for growth. Airports, shopping

centres, toll roads, desalination plants—they’re just a few examples of assets which are chosen to produce stable, long-term returns to help fund your retirement dreams.1

Lately, our investments team has been turning its attention to monetising ‘data and the cloud’—a key ‘thematic’, as it’s known in the investments world, for investors right now and a service for which demand is only increasing.

“Whether it’s on your computer, your mobile phone, on your laptop—wherever it is—the demand for data and cloud services that society is using is growing,” says Jarrod McDonald, Manager of Equities in UniSuper’s investment team.

ESG CONSIDERATIONS?Known for being a power hungry sector—the information and communications technology (ICT) industry could use 20% of all electricity and emit up to 5.5% of the world’s carbon emissions by 20252—how does this marry up with UniSuper’s approach to ESG?

WE’RE ONTO ITTalieh Williams, Manager of Governance and Sustainable Investment at UniSuper, heads up the team that puts an ESG lens over all of our investments.

“We work across all of the asset classes and all of the investments that UniSuper has,” Talieh says. “On any day of the week, you'd probably find the Chairs and CEOs of some of Australia's largest companies coming in to meet with us to discuss a broad range of issues including ESG.”

“Talieh and our Senior Investment Analyst Sybil Dixon have the expertise in that space—they were able to connect NEXTDC with Qantas, a company we also invest in and which has a carbon offsetting program called Qantas Future Planet.”

NEXTDC’s corporate operations have now been certified as carbon neutral against the Australian Government’s National Carbon Offset Standard and it has formed a strategic partnership with Qantas Future Planet.

“So really, they had the sustainability and carbon neutral goals to begin with,” Jarrod says. “UniSuper’s whole-of-fund approach to ESG across all our investments just helped them get there.”

NEXT LEVELFor his part, NEXTDC’s Alex Teo reflects warmly on this process.

“UniSuper does a lot of homework before investing in companies—not just from a financial perspective, but also from an ESG and responsible and ethical investing perspective.”

At the time his team first engaged with UniSuper on ESG, Alex says NEXTDC was pursuing a number of sustainability goals, including increasing the use of renewable sources to power its data centres, and hadn’t initially considered implementing a carbon offsetting program.

“Talieh’s team, Sybil Dixon in particular, suggested that we should have a close look at the Qantas program. We took that on board and spoke with Qantas about what we could do.”

NEXTDC was already reporting its carbon inventory to the National Greenhouse and Energy Reporting Scheme (NGERS), Alex says. “But to obtain carbon neutral certification in Australia required NEXTDC to comply with the National Carbon Offset Standard (NCOS) and undergo a carbon audit. We’re now NCOS-accredited for our corporate operations and have formed a partnership with Qantas as the strategic supplier of our carbon credits. There are number of projects we’ll be co-sponsoring with Qantas which we are very excited about,” he says.

A BRIGHT FUTURE100% of the carbon emissions associated with NEXTDC’s corporate operations are now offset through the Qantas arrangement.

NEXTDC’s customers—who control the electricity they use in the racks or data vaults they lease—will also soon be able to opt in to a similar program to offset their emissions.

“Our engagement with UniSuper on ESG has been very positive. It was UniSuper’s initial guidance that led us down this path and we maintain our longer term business goal of being 100% renewable," Alex says.

“As it’s turned out, being carbon neutral is a lot easier than we would have believed, so we are committed to helping our customers get there also.”

Critically important, Talieh says, is using UniSuper’s influence as an investor to help and guide companies to ensure they have appropriate practices in place.

“It's really important to us from an investment and risk management perspective and we also know it's important to our members that we're investing in responsible companies.”

PAYING DIVIDENDS“An ICT company with recent experience of our whole-of-fund approach to ESG is NEXTDC,” says Jarrod, referring to Australia’s leading independent, ASX200-listed data centre operator.3

With a network of data centres in Sydney, Melbourne, Brisbane, Canberra and Perth, NEXTDC offers enterprise-class colocation services to local and international organisations.

“We did a lot of work getting ourselves comfortable with the business. Once we’d done that, we spoke with the company about being a capital partner and a major shareholder. All up the process probably took at least 18 months.” The groundwork culminated in UniSuper investing $150M in an initial stake in the company in April 2018, representing about 8.6% of its total value.

“From there, I spoke with NEXTDC’s ESG representative, Manager of Investor Relations and Corporate Development Alex Teo, and the NEXTDC team.

“We knew they had a number of sustainability and carbon neutrality goals, and we had a very positive, productive discussion about how they were going to work to achieve them.

1 Past performance is not an indicator of future performance.2 Source: The Guardian, https://bit.ly/2Ab2H8W.3 The information provided is not a recommendation or endorsement of individual companies

and doesn’t take into account your individual objectives, financial situation or needs.

8 Super Informed February 2019

11

TRENDING

RETIREMENT EXPECTATIONS VS REALITYSo you might have an idea of what retirement will look like in your head, but for many people what actually happens after retiring is totally different.

Catch up on our Super Informed Radio podcast where we chatted to UniSuper Assistant Product Manager, Julia Maciver on why this might be happening and what people can do to help make sure their retirement expectations become reality. Listen now at unisuper.com.au/podcasts.

Five things

1CLIMATE RISK MANAGEMENT

is a topic we speak to a lot, in seminars, articles, and on our website—it’s something we know you’re passionate about—and so too are we. Our aim is to ensure everyone understands our approach to managing climate risk and where to go to for more information. Currently, all of our portfolios have a lower carbon intensity than the global industry standard benchmark (MSCI All Country World Index) and we’ll continue to focus on this in our investment decision making process. To learn more, go to the ‘Investments’ tab and ‘Responsible investing’ for our Climate risk disclosure booklet at unisuper.com.au. This document includes a list of our seven fossil fuel-free investment options and discusses the carbon intensity of our options versus the benchmark in more detail.

2 HOW TO INVEST

DURING MARKET VOLATILITY is another question that’s regularly raised because it can be unsettling, particularly when you’re already retired or close to retirement. Our approach is to help members make smart investment decisions and understand the risks of responding to market volatility with fear-based reactions, like switching investment options. In the November 2018 Five questions for the CIO video, John Pearce discusses the risk involved in switching during a downturn. Find this episode and more at unisuper.com.au in the ‘Investment news and commentary’ section.

3 THE AUSTRALIAN

LABOR PARTY’S PROPOSED NON-REFUNDING OF EXCESS FRANKING CREDITS POLICY was raised at many of our seminars and is currently still a proposal at this stage. If it were to pass, it’s not expected that our members will be impacted through their super. The proposal is set to exclude Australians receiving a federal government pension, including the Age Pension or allowance, however those within an SMSF are most likely to be impacted. Should this proposal go ahead we’ll let members know before this gets implemented.

4LAST YEAR'S ROYAL

COMMISSION INTO THE BANKING AND SUPER SECTORexposed some very poor practices, conflicts of interests and improper dealings with regulatory breaches in the financial services industry. It’s not surprising that there is a general lack of trust amongst consumers at the moment. At UniSuper, our foundation is built on providing greater retirement outcomes. This means, always acting in the best interests of members by having the right expertise, acting with integrity, having compassion, always communicating with members in an open and honest way and being truly dedicated to “doing the right thing”.

5 MEMBERS OFTEN ASK

US IF FAMILY MEMBERS CAN JOIN THE FUND —THE ANSWER IS YES. Personal Accounts are available to those related to a member, any former member who wants to re-join the fund or to people with honorary or sector affiliate roles. Go to unisuper.com.au, click ‘Join’ and follow the prompts to apply in minutes. If you’re already a member, you can send an email invite to your family member from the Join page.

FIVE THINGS WE KNOW

YOU'VE BEEN THINKING ABOUT

Before we held our annual 'In Retirement' seminars, we

asked attendees to send us their questions for Q&A time. There were heaps of great questions—

many of which we couldn’t respond to. In case you missed

out, here are the top five themes that came through from

the questions.

You may not know, but we use our size and scale to influence the government, community and opinion leaders on important matters related to super.

ADVOCATING FOR YOUR BEST INTERESTS

FEATURE

WHAT GOES INTO OUR POLICY AND ADVOCACY PROCESS?We actively monitor proposed legislative change, industry developments and emerging public policy issues e.g. government announcements, regulator discussion papers, Treasury consultations, draft legislation and industry white papers.

We then review how these changes could affect UniSuper, our members, products, employers and administrative systems.

We prepare policy positions and statements to build an advocacy for the fund, particularly through direct participation with industry associations.

Feature story

Super’s gone through a fair amount of change over the past few years. From contribution rules to data

reporting requirements, using super to buy a first home and means testing of retirement income streams—super is constantly evolving and this can have wide-ranging impacts.

It’s partly why many large super funds, like UniSuper, are playing a more active role in policy debates. Rather than reacting to legislative change, we’re participating directly with policy makers during the policy formation process.

We’ve had a strong advocacy voice for a while now—working closely with super industry bodies to develop industry policy. When we combine forces like this, our viewpoints are more likely to be heard by policy makers than if we were to go it alone.

However, there are times when we need to speak firmly with our own voice, particularly on issues around employment in the higher education and research sectors, defined benefit schemes and other bespoke issues.

Recently, we’ve been building strong relationships with government officials, including Treasury, the ATO and the Department of Social Services.

Owing to our scale, technical expertise and depth of experience, we’re a key player in policy debates, routinely consulted by policy makers in the policy development stage—something we’re very proud of.

ADVOCACY IN FOCUS—RETIREMENT INCOME FRAMEWORKOne key area we’ve significantly contributed to over the last few years has been in the debate around new retirement income streams. In case you missed it, the Government released a discussion paper on developing more efficient retirement income products.1 It aims to:

A increase peoples’ standard of living in retirement

A increase the range of retirement income products available, and

A empower trustees to provide members with an easier transition into retirement.

We’ve long been arguing for more flexibility for trustees to create new income streams that meet their members’ unique needs.

While it’s early days, we think the idea of a framework is preferred rather than having prescriptive rules imposed on us.

YOUR VOICE COUNTS TOOWe think it’s important to proactively manage the risks and opportunities associated with policy and legislative changes and to consider member feedback as a valuable resource.

So from time-to-time, we use member feedback on policy matters in our on-going discussions with policy makers; ultimately, having genuine feedback on the effects of government policy can be extremely powerful.

Read our latest submissions at unisuper.com.au/policy-and-advocacy.

1 Australian Treasury, Retirement Income Framework, http://bit.ly/2PgoN0v

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15

Member profile

My job is not just to educate students, but also to help the general public come

to a better understanding of how technology is changing society—and, in most cases, why they shouldn't be too concerned about how that will turn out for them.

The old concept of retirement, where somebody stops working and they sit at home and suddenly realise they have no purpose in life and don't live much longer—that's absolutely gone out the window, and rightly so. Now people have expectation of living into their 90s and for much of that time, they’re going to be active.

I think there is a subtle redefinition of ‘aged care’ happening—somewhere between resort style living and a proper level of aged care—making the whole thing look like a much more attractive proposition. People who are living longer and enjoying a better quality of life are very interested in setting themselves up somewhere where that's possible. We’re seeing an evolution, with government support, as a direct response to that.

A ‘next generation retirement community’ recognises that retirees with decades of high-quality life

MEET DR DAVID TUFFLEY‘Vertical retirement living’, ‘next generation retirement communities’ and ‘high-tech aged care’ might sound a bit like science fiction. But as Dr David Tuffley, Senior Lecturer in Applied Ethics and Socio-Technical Studies at Griffith University, tells us, the reality is closer than we might think. In fact, it’s already happening.

in front of them are going to want something more than the conventional outer-suburban retirement village experience. There's nothing wrong with that conventional experience, it suits a lot of people. But those who are already fairly intensive technology users, such as people who've been using it in their occupations—they're comfortable with it and will want to continue to live their high technology lifestyle.

‘Vertical retirement living’ is a very short step from current generation apartment buildings which have impressive levels of sophistication and a lot of embedded technology. High-rise apartment buildings in an urban area could either be completely devoted to retirement living or be a hybrid with a mixture of pre-retirees and retired people. Apartments will be fully wired with voice activation. For example, you could say "Hey, Google, call me a taxi.”

Most people who want to live an urban sort of lifestyle will want to be reasonably close to a CBD and have a good quality of life. Australia has some of the lowest density cities in the world. Greater Melbourne has just over five million people, but in area, it's larger than both London (which has 10 million) and Mexico City (more than 20 million).1

Australians love their quarter acre blocks with detached dwellings. And that's great—

I live in a house like that—but it does make for urban sprawl. These sorts of new retirement communities

can be seen as part of a solution to that problem.

There’s a lot of off-the-shelf health maintenance technology

that can be used to keep people in their homes longer, help them live

better lives, all the while enjoying the benefits of being close to the action. It's not a heavily science-fiction-oriented vision—it's really just using technology that already exists to make it easier for people.

My ideal retirement would be to stay in my current home. My wife and I are quite fortunate—we bought a really nice bayside house 25 years ago when prices were a lot lower. We intend to set it up with all the technology that's necessary and stay there until we're carried out feet first!

One of life's greatest pleasures is travel. I spend a month or two every year traveling somewhere, and I’d love to continue to do that. If we end up needing something a little less maintenance intensive, we'll cross that bridge when we get to it.

VERTICAL RETIREMENT LIVING ON THE RISERead more about David’s work into vertical and high-tech retirement living at https://bit.ly/2S5HbeI.

"Greater Melbourne has just over five million people, but in area, it's larger than

both London (which has 10 million) and Mexico City (more than 20 million).1”

1 ArchitectureAU, https://bit.ly/2QHinMJ

14 Super Informed February 2019

Columns

16 Super Informed February 2019 17

INVESTING IN YOUR RETIREMENT SAVINGSMore than half of our Flexi Pension members don’t actively choose how their pension

funds are invested, so their money stays in our default Balanced investment option.

WEALTH

While this option is a good fit for many because of its variety of asset classes and opportunity for long-term growth, your personal circumstances might mean that other options are better for you.

So if you haven’t made the choice, take some time to understand where your money is invested, what your options are, and be confident that your Flexi Pension is working as hard for you as possible.

The money in your Flexi Pension stays invested and can grow throughout your retirement—while it’s in your account. This means you’ll keep earning (positive or negative) investment returns for as long as your account is open. Like your super, it’s open to fluctuations in the market, so the amount of money you have later on in your retirement may not be what you expect it to be today. This is why it’s important to make the right investment choice for you, taking into account the level of risk you’re willing to take with your investments, the kinds of industries or asset classes you’re happy to put your money into and what you want to do with your money now and in the future.

We have a range of options that vary between growth (higher risk) and defensive (lower risk) investments, environmentally-friendly investments and local and international investments. So if the default Balanced option isn’t right for you, you’re sure to find one, or a mix, that is.

When you’re paid from your Flexi Pension account, the money comes out of your investment options in a particular order (either our default or your own choice) or pro-rata. Over time this can materially change the way your money is invested and the risk profile of your portfolio. This is why it's important to understand which option(s) your payments come from.

Our default drawdown order is designed to maximise your investment return potential by starting with the most conservative or defensive (lower-risk) options until these funds reach zero and then move onto higher-growth (but also higher risk) options.

If you’d like to drawdown from your pension in a different order, you can choose your own, like pro-rata drawdown, for exmaple.

This way, your pension payments will be drawn from your account in proportion to the funds held in each investment option.

You can explore our investment options online at unisuper.com.au/investments.

If you need help from an expert, we can take you through the investment options and explain how your Flexi Pension investments work.

If you’re ready to make your choice, check how your current investments are performing, or review your drawdown order you can do so at any time through your online account. Log in at unisuper.com.au.

Written by Matt WeraksoSenior Private Client Adviser

“Take some time to understand where your money is invested, what your options are, and be confident that your Flexi Pension is working as hard for you as possible.”

CAREER PIVOTSMany Australians are reaching retirement age and finding they're not quite ready to

retire. New technologies are making it easier for us to follow our passions instead.

WORK

Changing jobs is scary at any stage of life, particularly in the lead up to retirement. Continuing to build your retirement savings is top of mind. So rather than completely changing careers, you could pivot instead —finding a job that uses your current skills and experience. Career pivots are becoming increasingly common, particularly among older Australians who aren’t quite ready to stop working but want to follow their passion, feel like they are making a difference or ease into retirement.

Once you’ve decided what it is that you want to be doing, you need to figure out how to start doing it. First of all, talk to someone in your new dream industry about what it is that they actually do all day. It’s much better to figure out that you and your new dream job aren’t compatible before you quit your current one. LinkedIn can be a good place to find people in different industries that might be willing to talk to you. It can also help to build a network of people who could

help you on your chosen path. Next, figure out if there are any skills you need to learn or improve. Upskilling doesn’t have to involve formal training; sometimes the best way to learn a skill is through doing it. YouTube has lots of tutorials covering all sorts of skills or there are free courses available online. Then it's a good idea to double check you're financially secure enough to make time to devote to it. Once you feel you’re ready then go for it!

You don’t have to give up the things you love when you begin your pivot, though you can if you want. You might even decide that you want to spend more time volunteering instead of in paid work. More and more

people have a ‘side hustle’, a way of earning some extra cash on the side. Smartphones and the internet have made it much easier for individuals to sell goods and services or rent out their assets in their spare time. Platforms like Etsy, Uber, AirTasker and Airbnb allow you to join online marketplaces with minimal overheads. Side hustles can even turn into new businesses. In fact, the fastest growing segment of Australian entrepreneurs is the over-55s.

So, if you’re looking for something new to do, a way to earn some extra money or something to keep you busy once you’ve retired, then maybe a career pivot is for you.

Written by Julia MaciverAssistant Product Manager

Columns

18 Super Informed February 2019

COULD YOUR DIGITAL SELF 'LIVE' ON WHEN YOU DIE?

One of the kindest gifts you can leave a loved one when you die is your memories—the photos, music and books that are

the images, stories and soundtracks of a life well lived.

L IFE

Written by Lisa WinboltDigital Content and Experience Consultant

We now keep many of our memories online–our photo albums are in Google Drive and Dropbox, our music collection is a series of Spotify playlists arranged according to mood and many of our day-to-day interactions are on email, Facebook and Instagram.

So how do you pass the digital versions of these prized possessions onto others? And can you choose what happens to your digital accounts when you die? A digital will can help.

A digital will tells your family how to access and manage your online accounts and what you want to be done with your digital assets after you’re gone.

You can start by making a list of all your accounts and what you use them for. Knowing what you have makes it easier for your executor to access your files, pass the management of them onto your family or close them down. Email is often the most useful to access as it’s likely linked to your other accounts. You should also include any:

A file managers (DropBox, Google Drive, iCloud)

A social media (WhatsApp, Facebook, Twitter,

Instagram, LinkedIn, YouTube)

A streaming and subscription services (Netflix, Spotify, Apple Music, Audible)

A utilities A banking and insurance A shopping (eBay, Amazon) A websites or blogs you own

and manageYou should include how to access your computer, phone and other hardware that may hold your digital valuables.

You can keep all of your account details in a secure password management service. Keep the access details for this in a safe place and include instructions on where to find these in your will.

When deciding what to do with your assets, you should check what you own and what you have a licence for—many music and publication services like iTunes only sell you a licence that can’t be transferred to someone else. The terms and conditions for each service will outline ownership and what can be transferred.

Your digital legacy can last forever, so as well as giving your digital collections to loved ones,

a digital will can also protect your privacy, as well as that of your family and friends. If you’re not around to manage your accounts, hackers could use your information for fraudulent activity without detection.

To combat this problem, some services let you choose someone to have limited access to your account.

Google’s inactive account manager lets you choose someone to have limited access to your account and data if you haven’t logged in for a set amount of time.

Facebook’s legacy contact lets you ask another person to memorialise or delete your account once they’re told of your death. They can use your memorialised account to notify friends of a memorial service or to close your account.

While it may not be the same as going through photos, accessing your online memories can be just as powerful for your family and friends as any material object.

19

WHEN SHARING IS CARING IN RETIREMENTAs we get older, our lifestyle and personal circumstances change and can leave us feeling less connected to others.

RETIREMENT

Aged care residents are more likely to experience mental health issues including social isolation, loss of independence and loneliness. So could share housing make a comeback as a possible antidote to some of these issues?

While many of us would have done “the share housing thing” when younger, bringing it back in retirement is a fairly new concept and, according to one study, a possible solution to the lack of appropriate housing for many people in the 65-plus age group. So what does this look like?

A New Zealand study1 compared countries like Australia, the UK and the US and found that these places have all started looking at different styles of share housing arrangements, from converting houses into shared living spaces with private living quarters to simply sharing with others in an existing house.

The benefits are pretty cool. Aside from the companionship this offers (Golden Girls, anyone?), it means possibly saving on living costs for those on restricted incomes and allows older people to remain in their familiar communities—aging in the residence of your choosing—for as long as possible.

The study found the current market response of private retirement doesn’t cater for aging in place. At the same time, results found retirement villages offer a much needed sense of community and alleviation of loneliness for some people. This is where share housing can neatly be the best of both worlds. On a larger scale, share housing can provide a more efficient use of housing resources.

Community is key—even though housemates typically enter as strangers, they more often than not quickly become friends, providing mutual support and connection—when sharing a stage of life becomes increasingly important.

The study also looked at co-housing. Although most existing co-housing is multi-generational, it found that when designed in the right way, purpose-built homes for share housing in retirement are on the rise. So it’s interesting to

see that people are looking at different ways to make life after work easier.

While share housing might not be the answer for everyone, finding and choosing the right type of living arrangements for you or your loved ones can be challenging.

So if you need help with this topic, our UniSuper Advice team can help you plan in advance with some of those difficult decisions.

For more information, call us on 1800 823 842 or go to unisuper.com.au/in-retirement/aged-care.

1 (2016), Fatemeh Yavari and Brenda Vale, Alternative housing options for older New Zealanders: the case for a life-cycle study, University of Wellington, http://bit.ly/2EzvSbv

Written by Jo EimeCommunications Consultant

“Aside from the companionship this offers, it means possibly saving on living costs for those on restricted incomes and allows older people to remain in their familiar communities for as long as possible. ”

Important updates

20 Super Informed February 2019 21

UNISSIPEN 0219

We’re committed to highlighting the insightful work and research our members undertake in the course of their occupations. Our member articles are for informative purposes only. UniSuper doesn’t recommend or endorse the comments, views, products or services featured within them. UniSuper Management Pty Ltd is the Administrator of the Fund and is licensed to provide financial advice, which is provided under the name of UniSuper Advice—a service dedicated to UniSuper members, former members and their families. This information has been prepared to provide members with general information only and includes general advice. Any advice in this newsletter has been prepared without taking into account your individual objectives, financial situation or needs. Before making any decision in relation to your UniSuper membership, you should consider your personal circumstances, the relevant product disclosure statement for your membership category, and whether to consult a qualified financial adviser. For a copy of the PDS relevant to your membership category, visit unisuper.com.au/pds or contact us on 1800 331 685. For more information about UniSuper Advice, visit unisuper.com.au, access the Financial Services Guide and, for any further enquiries, contact us on 1800 823 842. Any views expressed by third parties are those of the third party and not UniSuper. UniSuper is referred to as UniSuper or the Fund. UniSuper Ltd is referred to as UniSuper or the Trustee.

Issued by: UniSuper Management Pty Ltd (ABN 91 006 961 799), AFSL No. 235907 on behalf of UniSuper Limited, ABN 54 006 027 121, AFSL No. 492806, the Trustee of UniSuper (ABN 91 385 943 850) the Fund. MySuper Authorisation No. 91385943850448.

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Printed on environmentally responsible paper.

CHANGES TO SUPERUniSuper update

ANNUAL INVESTMENT FEES AND COSTS REVIEWWe annually review our investment fees and costs. The investment fees and costs for the financial year ending 30 June 2018 are available at unisuper.com.au/investment-costs.

AUTOMATIC UPDATES TO CENTRELINK – DEFINED BENEFIT INDEXED PENSION AND COMMERCIAL RATE INDEXED PENSION MEMBERSFrom 1 January 2019, the Department of Human Services requires us to provide information about your pension to Centrelink directly. As a result, you’ll no longer receive a Centrelink Schedule from us. We’ll still send you your annual letter confirming your new pension details for the year and your PAYG payment summary after 1 July.

Important updates

CHANGES TO UNISUPER’S TRUST DEEDThe following changes were made to our Trust Deed—one of the documents which governs how our fund operates—effective 1 January 2019:

A clarify how benefits are calculated when a Division B disablement pension ceases to be paid in the Defined Benefit Division (DBD). The amendment confirms that, for the period that the member receives the disablement pension, their Service Fraction is deemed to be equal to their Average Service Fraction at the date of calculation of the disablement pension. This ensures that the Average Service Fraction is essentially frozen while the member receives the disablement pension.

A include references to the Australian Financial Complaints Authority (AFCA).

A confirm the power to roll over death benefits to another superannuation fund

A empower the Trustee to determine to pay DBD pensions at intervals other than monthly, and

A remove an impediment to the payment of pensions which required the attainment of super preservation age. The amendment was made because some death benefit recipients may be eligible to receive a pension before attaining superannuation preservation age.

Further analysis of the last two amendments is required before any change to current processes could be contemplated.

Effective 1 July 2019: A Simplify the waiting period that must be

served to qualify for a DBD disablement pension or Temporary Incapacity benefit. Currently a member must, among other criteria, be absent through injury or illness for three months in a consecutive 12-month period to qualify. Under the new provisions, the waiting period would generally be 60 working days in a consecutive 12-month period for full-time employees or a pro-rated number of days for members who work part-time. This is considered a clearer and simpler concept and is expected to be favourable for part-time employees, and also for full-time employees who experience intermittent absences from work due to illness or injury, by having a clear focus on a specific number of working days for which a member needs to be absent. A new provision has also been included to ensure that any members who have already commenced absence due to illness or injury will continue to have the benefit of the former waiting period in the unlikely event that the new waiting period were to be longer in their particular circumstances.

CHANGES TO UNISUPER’S REGULATIONSThe following changes to UniSuper’s Regulations took effect on 1 January 2019 to:

A provide greater clarity regarding the calculation of benefits when a Division B disablement pension ceases to be paid in the DBD (this mirrors the aforementioned amendment to the Trust Deed)

A provide greater flexibility for the Trustee to extend the time for DBD members to elect what to do with their defined benefit component after ceasing to be a contributing member

A confirm that those acting under powers of attorney cannot make binding death benefit nominations, and

A provide discretion for the Trustee to allow signature of non-lapsing binding nominations before a single witness in certain circumstances.

Further analysis will be required regarding the last amendment before any change to the current process could be contemplated.

AWARD-WINNING FUND With a string of awards and high ratings from Australia’s top ratings and research agencies, SuperRatings and Chant West, we’re one of Australia’s most award-winning super funds.

SuperRatings, a superannuation research company, named UniSuper’s Flexi Pension product ‘Pension of the Year’ at its 2017 awards. The product has also achieved a 10-year Platinum Performance rating. Go to www.superratings.com.au for details of its rating criteria. SuperRatings doesn’t issue, sell, guarantee or underwrite this product.

PENSIONOF THE YEARFINALIST 2019

2019

FUNDOF THE YEAR2019

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Chant West awarded UniSuper ‘Pension Fund of the Year’ in 2017 and 2018. We've also been rated 5 Apples by Chant West for being the Highest Quality Fund based on our investments, fees, insurance, administration and member services. Compare us to more than 200 other super funds using the Chant West AppleCheck tool at www.unisuper.com.au/compare.

We’re proud to have been named 2019 Fund of the Year—as the fund with the best value end-to-end product offering—by research house, SuperRatings. For more, check out our website at unisuper.com.au/trophy-cabinet.

SUPERRATINGS NAMES UNISUPER FUND OF THE YEAR