Activ8 your planning!

Name

Date

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Equipsuper Pty Ltd ABN 64 006 964 049, AFSL 246383 is the Trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017. This document and any information provided with it is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the appropriate Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance. Equip is licensed to provide personal and general superannuation advice under its AFSL. Member Advisors are employees of Equip. For more information about the remuneration of Equip and its employees, please refer to the Equipsuper Financial Services Guide.

Equipsuper Financial Planning Pty Ltd (ABN 84 124 491 078, AFSL 455010) is licensed to provide financial planning services to retail and wholesale clients. Equipsuper Financial Planning Pty Ltd is owned on behalf of Equipsuper Pty Ltd (ABN 64 006 964 049, AFSL 246383) as the Trustee of the Equipsuper Superannuation Fund (ABN 33 813 823 017).

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Thinking of retirement

Source: Forethought Research, 2009

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Take charge for a brighter future.

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ASFA Retirement Standard (May 2014), Centrelink (March 2014)

Let’s talk dollars

$33,509

$23,283

$57,817

$42,254

Couples

Singles

Comfortable lifestyle Modest lifestyle

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But…it really depends on your lifestyle

65% - 80% of pre-retirement income

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Amounts needed to fund retirement

Couples income p.a.^

Super required to last20 years*

Super required to last30 years*

$58,000#

comfortable

$406,000 $568,000

$70,000 $661,000 $947,000

$85,000 $989,000 $1,387,000

$100,000 $1,279,000 $1,744,000

^ Combined super income and Age Pension. * Superannuation savings required # Note that the Association of Superannuation Funds of Australia (ASFA) publishes a guide to how much people need in retirement – people with a comfortable lifestyle in mind would need approximately $58,000 (for couples) and $42,000 (for singles), respectively. For more information on the ASFA retirement standard, go to www.superannuation.asn.au/resources/retirement-standard. The example is for illustrative purposes only.Individuals are retired and 65 years of age on 1 July 2014. They own $10,000 in home contents, have $30,000 in cash in an account earning 4.35%, a $15,000 car, and own their $500,000 home outright. The return earned on their account based pension investment portfolio is 6.37% p.a. Living expenses increase by 2.8% p.a. They have no other sources of income other than the Age Pension and their account based pension. Current Age Pension rules are assumed to apply in the future. Age Pension rates as at March 2014.Source: Equip

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Amounts needed to fund retirement

Singlesincome p.a.^

Super required to last20 years*

Super required to last30 years*

$42,000#

comfortable

$339,000 $481,000

$55,000 $615,000 $873,000

$70,000 $925,000 $1,235,000

$85,000 $1,180,000 $1,547,000

^ Combined super income and Age Pension. * Superannuation savings required # Note that the Association of Superannuation Funds of Australia (ASFA) publishes a guide to how much people need in retirement – people with a comfortable lifestyle in mind would need approximately $58,000 (for couples) and $42,000 (for singles), respectively. For more information on the ASFA retirement standard, go to www.superannuation.asn.au/resources/retirement-standard. The example is for illustrative purposes only.Individuals are retired and 65 years of age on 1 July 2014. They own $10,000 in home contents, have $30,000 in cash in an account earning 4.35%, a $15,000 car, and own their $500,000 home outright. The return earned on their account based pension investment portfolio is 6.37% p.a. Living expenses increase by 2.8% p.a. They have no other sources of income other than the Age Pension and their account based pension. Current Age Pension rules are assumed to apply in the future. Age Pension rates as at March 2014.Source: Equip

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Retirement calculator

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Plugging in some of your details…

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…gives you a glimpse into your financial future

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A little extra can make a big difference

Pre-tax (“concessional”)Subject to a 15% contributions tax*

After-tax(“non-concessional”)

• $30,000 max. • $180,000 max.

per financial year;

• $540,000 max. over three

financial years if you are under age 65.

• $35,000Age 50+ from 1 July 2014

*Individuals with an income (including concessional contributions) greater than $300,000 pay 30% contributions tax on those concessional contributions over the $300,000 threshold.

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Stash more money, pay less tax

$0

$10,000

$20,000

$30,000

$40,000

$50,000

51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Super Non-super

+31%

+35%

Source: Equip. Assumes $250/month contributions, compounding at 6% net of fees and taxes to age 65. Tax bracket for non-super savings is 32.5%. Amounts shown are in today’s dollars (CPI 2.5%).

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Save on tax in super

Super Outside of super

Savings $1,000 $1,000

Tax* ($150) ($370)

Net savings $850 $630

Earnings -- 10% a year $85 $63

Tax on earnings ($12.75) ($23.31)

Total $922.25 $669.69

Source: Equip. Tax in super for contributions and earnings is 15%. Tax on savings outside of super is the marginal tax rate. Assumption: 37% (income $80,000+).

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Transition to retirement pension (TRP): flexible way to move from work into retirement

• Continue full-time work, reduce your tax rate, boost your super

• Move to part-time work, replace lost salary with a pre-retirement pension, improve your lifestyle

Earn a pension income while working

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Maintain your income, grow your super!A possible strategy

Contributions into super

TaxTake home

salary

With a transition to retirement pension

Contributions into super

TaxTake home

salary

Standard approach

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Salary -- $75,000Total net income $57,578

($27,875)

TRP account

Salary sacrifice

Reduced salary income (reduced income tax at marginal rate)

Income (at concessional tax rate)

John, 60 years old Salary: $75,000 p.a. gross; $57,578 net

TRP income $17,965

Net salary income $47,125

$5,729 annual extra retirement

savings=

Earn a pension income while working

Source: Equip. Also see Activ8 fact sheet Transition into retirement.

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It can make a difference!

$300,000

$350,000

$400,000

$450,000

$500,000

60 61 62 63 64 65

No TRP strategy TRP strategy started at 60

$488,300

$455,824

Source: Equip. Same assumptions as previous slide; TRP impact over 5 years until John turns 65; benefit difference with additional super contributions (same take home pay).

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Adjusting your portfolio to your income needs

Possible objectives

Early working life / mid career

Late career Retirement

Growth Growth Stability Liquidity GrowthStability

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Smoothing out the bumps: Equip’s Diversified options

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Smoothing out the bumps

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Sources of retirement income

Contributions + pre-retirementearnings

Post retirement earnings

Source: Securing Retirement Incomes (Mercer Report), 2010

Keep your money working

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When it’s time to collect your super

Your options:

• Leave your money in super

• Take it out of super as cash

• Convert it into an income streamo Account based pension

o Annuity

• A combination of the above

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Consider an income stream

• An ABP provides you with a regular income in retirement.

• If you’re over 60, income from your account based pension is tax-free, as are investment earnings in the fund.

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But there is more to an ABP

You’re in control of every facet of your ABP:

• How much you receive each year (subject to legislated minimum);

• How often you receive payments;

• How your money is invested;

• Lump sum withdrawals for special projects, purchases or holidays; and

• Who receives your money if you die.

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Strategies to make your money last

Objective:

Strike a balance between income stability and capital growth over time

Possible approach:

3-bucket strategy

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How it works

Liquidity Stability Growth

To meet short-term income needs

To provide some stability over the shorter term

To help savings keep growing and last longer

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How it worksPouring from one to the other

Provide income for immediate future.Grow tax-free investments.

Sealing in income Don’t spill too much

Dealing with overflow

Income drawn from liquidity bucket, which is not subject to ups and downs.

Stable bucket helps to even out the highs and lows of investment markets.

Rebalance annually

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Making your money last longer

• At retirement, your super may reach a high watermark

• Employing an income stream and the right investment strategy may allow you to stretch your money longer

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Your options with Equip when you retire

Equip’s pension products

A tailored financial plan

Equip MyPension Account Based Pension Equip Financial Planning

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Even when you leave your employer, your super can remain with Equip

• Same investment options

• Same fees

• Insurance automatically continues

• Have your new employer contribute to your Equip Personal account

You can stay with Equip for life

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#1 – Increase your retirement savings.

#2 – Think about your transition to retirement.

#3 – Kick your investments into gear.

#4 – Consider a regular income in retirement.

4 BIG

IDEAS!

Seek advice when and if necessary.

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Member support and advice

Helpline1800 682 626

Member adviser

03 9248 5923

Financial planning

1800 065 753

Administration support and information about Equip

Strategies for your Equip superannuation account

Financial complexity

Nee

d

Financial plans for all aspects of your financial life

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Financial planning process

Process starts here

Discuss plan 1st appointment

Annual review

Implement agreed

recommendations

Annual reviewRequest

appointment

Strategy planning

Gather information

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How can we help you?

Our services include

• Financial planning

• Superannuation

• Retirement planning

• Redundancy planning

• Wealth creation

• Wealth protection

For an appointment - call 1800 065 753

- email fpappointments@equipsuper.com.au

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Equip members receive an 8.3% discount on Medibank health cover.

Travel cover.

Competitive banking products and services (savings and term deposit accounts, home loans and credit cards).

Discounted services to will preparation and estate services (Victoria only).

Equipsuper does not sponsor, endorse, sell, or promote or recommend the products and services offered by these providers.

Member Privileges

www.equipsuper.com.au

Helpline 1800 682 626