16/07/2019 1 WEALTH MANAGEMENT & PROTECTION This presentation is for general information only and must not be considered as personal financial advice UniSuper Management Pty Ltd (ABN 91 006 961 799) is licensed to provide financial advice (Australian Financial Services License No. 235 907) and is the administrator of UniSuper (ABN 91 385 943 850). UniSuper Management Pty Ltd (USM) provides advice under the name UniSuper Advice. UniSuper general advice representatives are employees of USM. They are remunerated by way of a base salary and potential bonuses (based on the quality, service and revenue targets). See the relevant Financial Services Guide for more details. UniSuper Ltd (ABN 54 006 027 121, AFSL 492 806) is the trustee of UniSuper. For more information about your UniSuper benefits, refer to the relevant Product Disclosure Statements available on our website.
Transcript
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WEALTH MANAGEMENT & PROTECTION
This presentation is for general information only and must not be considered as personal financial advice
UniSuper Management Pty Ltd (ABN 91 006 961 799) is licensed to provide
financial advice (Australian Financial Services License No. 235 907) and is the
Ltd (USM) provides advice under the name UniSuper Advice.
UniSuper general advice representatives are employees of USM. They are
remunerated by way of a base salary and potential bonuses (based on the
quality, service and revenue targets). See the relevant Financial Services
Guide for more details.
UniSuper Ltd (ABN 54 006 027 121, AFSL 492 806) is the trustee of UniSuper.
For more information about your UniSuper benefits, refer to the relevant
Product Disclosure Statements available on our website.
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Agenda
Power of compound interest
Responsible investing
Insurance
Estate planning
Managed investments
Online tools
Contribution management
First Home Super Saver Scheme
Contact us
FIRST HOME SUPER SAVER SCHEME (FHSSS)
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FIRST HOME SUPER SAVER SCHEME (FHSSS)
Am I eligible?
Singles can contribute up to $15,000 per year, or $30,000 per lifetime limit to their superannuation. Couples can contribute up to $30,000 per year, up to $60,000 limit collectively.
• aged 18 years or older
• never have owned a property before*
• never previously requested a release authority under a FHSSS determination
*Note:You still might be eligible to participate if you have previously owned a home and suffered a financial hardship subject to ATO’s approval
FIRST HOME SUPER SAVER SCHEMEExample: Boosting Michelle’s first home deposit*
Michelle earns $60,000 a year and using salary sacrifice, directs $10,000 of pre-tax income into her super, increasing her balance by $8,500 after the contributions tax has been paid by her fund.
After three years, she is able to withdraw $27,380 of contributions and deemed earnings on those contributions.
Michelle has saved around $6,240 more for a deposit than if she had saved in a standard deposit account.
Her withdrawal is taxed at her marginal rate (including Medicare levy) less a 30 per cent offset. After paying $1,620 of withdrawal tax she has $25,760 that she can use for her deposit.
*Source: The Australian Government Fact Sheet 1.4 First Home Saver Scheme Budget 2017
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FIRST HOME SUPER SAVER SCHEME (FHSSS)
How do I participate in the FHSSS?Make voluntary additional contributions to your super (i.e. salary sacrifice, personal deductible or voluntary after-tax)
Common questions
How do I make contributions to UniSuper?Salary sacrifice can be requested via your employer, alternatively one-off contributions can be made via BPAY and cheque (i.e. personal deductible and voluntary after-tax)
How do I withdraw my money to buy a house?You can apply to the ATO and they will work with UniSuper to help calculate earnings and deductions.
Further information: The ATO FHSSS webpage
CONTRIBUTION MANAGEMENT
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CONTRIBUTION TYPES
Salary Sacrifice
Before-tax (15% tax)
Concessional
After-tax (already taxed income)
Non-concessional
Employer
Personal deductible
Voluntary
Spouse
Reminder:You need to meet a condition of release to access your superannuation funds
• May be a tax effective way of
contributing to your superannuation
• Weighing up cash flow needs versus
meeting retirement objectives
CONTRIBUTIONS TO SUPERANNUATION
Example: Heather earns $100,000 pa and is considering salary sacrificing $10,000
Past performance is not an indicator of future performance. Balances do not take into consideration fees and taxes.Based on an investment return of 6.87% p.a. (not a prediction of future performance), which is reinvested over 35 years for Scenario 1 and 20 years
for Scenario 2.
- $2,000 a year
from age 25 until age 60 (total
contributions of $70,000)
Scenario 1
Scenario 2 - $5,000 a year
from age 40 until age 60 (total
contributions of $100,000)
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RESPONSIBLE INVESTING
RESPONSIBLE INVESTING AT UNISUPERAs a responsible investor, we assess environmental, social and governance (ESG) factors across every investment we make.
When we invest in a company, we look at a number of key factors, including:
• climate risk management
• ESG disclosure and transparency by investee companies
• human rights in the supply chain
• occupational health and safety (OHS)
• remuneration
We’re an active owner
Member choiceYou can choose from certain options that avoid investments in the following sectors (as well as fund wide divestment in tobacco):
• alcohol
• gaming
• weapons
• fossil fuel exploration and production
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CLIMATE RISK DISCLOSUREWe’re pleased to release our first Climate Risk Disclosures Report.
It’s one of the first prepared by an Australian super fund
The Taskforce on Climate Financial Disclosures (TCFD) is endorsed by a number of organisations:
Investor Group on Climate Change
Climate Action 100+
The Principle for Responsible Investment
The Australian Council of Superannuation Investors
* Also known as Total Permanent Disablement (TPD) or Disablement** Also known as Income Protection
WHERE TO HOLD?
R: 150G: 213B: 109
Do Nothing Review Yourself
Discuss with Unisuper Advice
Inside super Outside super
Incomeprotection
Are premiums tax deductible? Yes Yes
Are benefits taxed? Yes Yes
Life insurance
Are premiums tax deductible? Yes No
Are benefits taxed? • Tax-free to dependants• Taxable if paid to non-
dependants (with concessions)
Generally tax free
Total Permanent Disablement (TPD)
Are premiums tax deductible? Yes* No
Are benefits taxed? Taxable (with concessions) Generally tax-free
*premiums paid for cover equivalent to the “Any Occupation” definition and deductible to the fund
For more info, please visit: https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/insurance-through-super
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ESTATE PLANNING
ESTATE PLANNING CONSIDERATIONS
Your Will Management of your financial affairs after you dieImportant tool to enable the restructure of ownershipNominates the Executor of the Estate
Enduring Power of AttorneyDocument that empowers a trusted person to act on behalf of another with respect to the giver’s finances, assets or rights with respect to property.
Advanced Health Directives*Document that states your wishes or directions regarding your future health care for various medical conditions. It comes into effect only if you are unable to make your own decisions.
*Can differ depending on state/territory: https://www.advancecareplanning.org.au/resources/advance-care-planning-for-your-state-territory
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SUPERANNUATION NOMINATIONS Types of beneficiary nominations
Reversionary option*Nominating your pension payments to continue as a pension instead of being paid out as a lump sum
Non-binding nomination
Binding nomination
Beneficiary options
*option only available via pension products
MANAGED INVESTMENTS
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MANAGED INVESTMENTSProduct that allows investors to pool their money with an investment manager who has extensive research facilities and experience.
combination of income (including realised capital gains) and the potential for capital growth over the medium to long-term.
income distributions can either be reinvested, or paid to a nominated bank account.
Generally provide:
Some of the advantages of managed fund investments include:
Diversification Professional Management
Regular reporting on performance
Ability to withdraw part
of portfolio
Tax advantages
Managed Funds
CONSIDERATIONS FOR MANAGED INVESTMENTS
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ONLINE TOOLS
REGISTER YOUR ONLINE ACCOUNT
• Access to product information
• Transaction history
• Investment allocation
• Insurance details
• Beneficiary nominations
Features of your UniSuper account:
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GET YOUR SUPER TOGETHER
• Pay only one set of fees and charges
• Less paperwork
• Makes it easier to track your total super savings
Combine my super tool via your online account
Make sure:to review insurance arrangements and exit or withdrawal feesbefore closing any superannuation account
