ANZ Australian Staff Superannuation Scheme
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Your guide to retirement planning
Live the life you want
www.anzstaffsuper.com
ANZ Australian Staff Superannuation Scheme
1
Contents
Live the life you want
Planning for your future 3
Living the life you want
4
Your early 50s – little changes can make a big difference
5
57 and over – a whole range of options
6
Retirement planning checklist
9
About ANZ Staff Super Scheme
10
Planning for your future
Our 50s is when many of us start
thinking about the life we want
in retirement.
For some, retirement might still be some way off
but perhaps you’re wondering how you can boost
your super before you get there? For others,
retirement is much closer and you’re wondering
do I have enough and how will I manage when
I no longer have a regular income?
Don’t forget that for many, retirement comes
earlier than expected – for example, because of
poor health or redundancy. Whatever your path to
retirement, planning should start well before you
get there.
This booklet is designed to give you an idea of
how much you might need and some of the things
to consider in planning for retirement. It also
explains how you can use your Scheme to boost
your super before you retire, gradually ease into
retirement, or retain the security of a regular
income when you eventually decide it’s time to
leave work behind.
No matter what your age or situation, your Scheme
has the answers. Our pension options mean you
can stay with us even when you move into
retirement. The ANZ Australian Staff
Superannuation Scheme (the Scheme) offers
you super for both your working life and after
you finish.
If you need advice regarding your super or
retirement options, all you have to do is call an
ANZ Staff Super financial adviser on 1800 000 086.
They can help you work out the right strategy to
live the life you want and provide you with advice
over the phone.
Live the life you want
ANZ Australian Staff Superannuation Scheme
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Living the life you want
First, how much will you need?
A lot of people wonder how much they’ll need
for retirement.
The problem is there’s no one answer that applies to all. It
depends on many things, some of which are your lifestyle
expectations, whether you own your home and what other
assets you have. A good starting point is the Retirement
Standard* developed by the Association of Superannuation
Funds of Australia (ASFA). It’s a guide to what would be needed
to live a ‘modest’ or a ‘comfortable’ lifestyle in retirement.
A modest lifestyle is defined as slightly better than
relying only on the Age Pension. It allows for some basic
leisure activities and a few holidays close to home.
A comfortable retirement will allow for a wider range of
leisure activities and international travel. Retirees who
plan for this type of retirement can benefit from a better
standard of living, including private health insurance, a
reasonable car, good clothes and a range of electronic
equipment and household goods.
Translated into dollar terms, the latest figures from ASFA show
that a single would need $43,062 per year and couples would
need $59,160 per year to live a comfortable retirement.
According to ASFA, this means that singles would need to have
$545,000 saved and couples $645,000 at retirement.
Of course, the above figures provide a general guide only
to what you might need. You may need to consult with a
financial adviser to discuss your specific needs. For financial
advice, call an ANZ Staff Super financial adviser on
1800 000 086.
Second, work out how much you’re
likely to have
Your last benefit statement will give you an idea of how much
you’re likely to have when you retire and how long it will last.
Alternatively, you can use our Model My Super calculator at
www.anzstaffsuper.com.
When estimating the income you’re likely to have in
retirement, remember to take into account your assets
outside of super, plus any Centrelink benefits for which you
may be eligible.
Having done that, compare your likely retirement income
with the ASFA figures. If there’s a gap, don’t get too stressed
– there’s plenty of ways you can boost your retirement
savings whether retirement is some years off or just around
the corner.
Half the population lives five years
longer than their money lasts –
their money is likely to run out
‘Expectations versus reality of retirement’ - Mercer July 2014
* The ASFA Retirement Standard is available at
www.superannuation.asn.au/resources/retirement-standard.
All figures shown are based on the June 2016 Quarter and are
in today’s dollars using 3.75% Average Weekly Earnings as a
deflator and an assumed investment earning rate of 7%. They are
based on the means test for the Aged Pension with effect from
1 January 2017.
Live the life you want
ANZ Australian Staff Superannuation Scheme
4
Your early 50s – little changes can make
a big difference
If you’re still some years from retirement, an extra effort now can have a big impact on how far your super will stretch in
retirement. Even little changes add up and can make a big difference over a number of years. Consider using your Scheme to:
1.Contribute extra to your super
You may be able to add to your super by making
additional contributions from pre-tax (salary sacrifice)
or after-tax salary. Use our Model My Super calculator at
www.anzstaffsuper.com to see the difference a little extra
can make.
To make regular additional contributions by payroll
deduction, complete a Superannuation Contribution Form
available on Max if you are a current ANZ employee or
contact your current employer if you are no longer an ANZ
employee. To make lump sum contributions, you can use
BPAY (login to the secure section of www.anzstaffsuper.com
for your BPAY payment details) or send a cheque (together
with an Application to make lump sum contributions directly
to us.
2.Review your investment choice
Your investment choice should suit your needs and your
appetite for risk and return. The choice you make now can
make a difference to your account balance over time. For help
choosing the right investment option for you, call an ANZ
Staff Super financial adviser on 1800 000 086.
3.Consolidate your super accounts into one
If you have more than one super fund you may be paying
multiple sets of fees. Consolidating these accounts into your
Scheme account can mean more money invested over time
for the future.
You can consolidate online today from most funds through
the secure section of the website at www.anzstaffsuper.com
but first check that you’re not losing any benefits, such as
insurance cover.
4.Find any lost super
We can help you find any lost super – visit ATO SuperSeeker
at ato.gov.au/superonline.
5.Make spouse contributions
This can be an effective way to build up super and you may
be able to claim a tax offset if your spouse earns less than
$13,800 in the year. Spouse contributions are paid to the
Spouse Contribution Account (SCA) Section. Go to the
Forms & publications section at www.anzstaffsuper.com
for the Product Disclosure Statement for SCA members.
Little changes add up
and can make a big difference
over a number of years.
Live the life you want
ANZ Australian Staff Superannuation Scheme
5
57 and over – a whole range of options
This is the time when your super presents you with a whole
range of options, depending on whether you plan to
continue working full-time, want to ease into retirement by
reducing your work hours, or are ready to fully retire.
Continue working full-time and give
your super a boost
If you plan to continue working you could leave your super
where it is to continue growing with contributions and
investment earnings.
But to give your super a boost before you retire, you could
consider a ‘transition to retirement’ strategy.
A transition to retirement strategy doesn’t mean you’re ready
to start moving into retirement – you might be years away
from wanting to retire. What a transition to retirement
strategy lets you do is tax-effectively boost your super at
the same time as drawing on part of it while you
continue working.
You can tax-effectively boost
your super while drawing down on
part of it and continuing to work.
You might ask: How can you possibly boost your super at the
same time as drawing on it? Here’s how it works:
1. You open a Transition to Retirement Account Based
Pension with the Scheme using some of your super.
2. You pay less tax. Your investments in your Transition to
Retirement Account Based Pension can grow tax-free and
any pension you draw is also tax-free if you’re aged over
60. If you’re 57 to 59 you may pay some tax on your
pension payments, but you may be able to receive a
tax-free amount and be eligible for a 15% tax offset on
any taxable portion.
3. The tax-effective income you receive from your Transition
to Retirement Account Based Pension allows you to
contribute extra into your existing Scheme super from
your pre-tax salary (salary sacrifice).
You get the advantage of both saving income tax through
salary sacrifice and the tax concessions available on pension
payments drawn from your Transition to Retirement Account
Based Pension. That means you should end up with more
going into your super account than you have coming out of
your Transition to Retirement Account Based Pension.
The diagram below and the case study that follows illustrate
the benefits of using a transition to retirement strategy to
boost your super.
Without
transition to
retirement
Net into
super
Tax
Take-home
pay
With
transition to
retirement
Net into
super
Tax
Take-home
pay
Live the life you want
ANZ Australian Staff Superannuation Scheme
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Case Study 1:
Andy uses transition to retirement
to boost his super
Andy is 57, earns $100,000 p.a. and has a super balance
of $220,000.
Andy intends to keep working full-time for another few years.
He wants to continue to earn his current net income but
maximise the tax-effectiveness of his super.
Andy decides to transfer most of his super to a Transition to
Retirement Account Based Pension (leaving $5,000 in his
super account for incoming contributions and to retain his
insurance cover). This saves money because there is no
longer tax on investment earnings.
Andy also salary sacrifices $20,500 p.a. into super. This saves
income tax but reduces his take-home pay.
Then Andy withdraws 10% of his Transition to Retirement
Account Based Pension balance each year, which boosts his
overall income back to the current level.
The table below shows that in the first year this strategy
results in an extra $2,326 per year towards Andy’s super
while his take-home pay has stayed the same. Andy is also
paying less tax on investment earnings in his Transition to
Retirement Account Based Pension.
Current
Transition to retirement strategy
$100,000
$100,000
Minus salary sacrifice
$0
($20,500)
Transition to Retirement Account Based Pension income
$0
$16,454
Taxable income
$100,000
$95,954
Minus tax and Medicare levy
($26,947)
($22,901)
Take-home pay
$73,053
$73,053
Gross income
Super contributions: employer contributions
$9,500
$9,500
$0
$20,500
Investment returns
$15,400
$15,400
Minus contributions tax
($1,425)
($4,500)
$0
($16,454)
Minus tax on earnings
($1,386)
($31)
Net gain in super
$22,089
$24,415
Total tax paid
$29,758
$27,432
Super contributions: salary sacrifice
Minus Transition to Retirement Account Based Pension
payments
COMBINED TAX SAVINGS
$2,326
Source: Australian Securities and Investments Commission moneysmart website, as at September, 2016. The individual is not real and the hypothetical case
study is provided for illustrative purposes only. It should not be relied on as personal, legal or taxation advice, nor does it take the place of such advice.
Assumptions:
• 2016/17 marginal tax rates
• Investment returns based on earnings of 7% and an average tax rate of 9% on superannuation fund earnings.
It gets even better when Andy turns 60. His Transition to Retirement Account Based Pension payments will be tax free,
meaning Andy will save even more tax.
For help estimating the optimal contributions and pension payments for your situation, use our Transition to Retirement
calculator at www.anzstaffsuper.com. And because transition to retirement strategies to boost your super involve tax and
can get a bit complicated, we recommend you call an ANZ Staff Super financial adviser on 1800 000 086. They can help you
work out the right strategy for you.
Live the life you want
ANZ Australian Staff Superannuation Scheme
7
Easing into Retirement - supplement your income
57 and over – a whole range of options
You can also use a transition to retirement strategy if you
want to reduce your work hours but are worried about living
off a reduced level of income. Again, this involves accessing
some of your Scheme super to open a Transition to
Retirement Account Based Pension. This then provides a
regular income that supplements your reduced salary.
Here’s how it works:
Your Super
Transition to
Retirement
Account Based
Pension
Pension
paid to you
The case study below illustrates the benefits of using a
transition to retirement strategy to ease into retirement.
Case Study 2:
Susan uses transition to retirement
to reduce her work hours
Susan has just turned 60, earns $60,000 p.a. ($47,753 p.a. after
tax) and has a super balance of $160,000.
Susan decides to work only three days a week so that she can
ease into retirement. This means her income from work will
drop to around $32,000 p.a. after tax. While Susan can afford
to reduce her take-home pay a little bit, by using a Transition
to Retirement Account Based Pension she can draw money
from her super to replace some of her reduced pay.
Gross income
Transition to Retirement Account Based Pension income
Susan transfers $155,000 of her super to a Transition to
Retirement Account Based Pension and begins drawing a
pension of $9,000 p.a. tax-free. This supplements Susan’s
income of $32,000 p.a., giving her a total after-tax income of
around $41,000 p.a. While Susan continues to work part-time,
her super balance continues to grow and she saves around
$9,400 in tax each year.
The table below shows Susan’s financial situation if she sets
up a Transition to Retirement Account Based Pension.
Current
Transition to retirement strategy
$60,000
$36,000
$0
$9,000
Taxable income
$60,000
$36,000
Minus tax and Medicare levy
($12,247)
($4,102)
Take-home pay
$47,753
$40,898
Super contributions: employer contributions
$5,700
$3,420
Investment returns
$11,200
$11,200
Minus contributions tax
($855)
($513)
$0
($9,000)
Minus Transition to Retirement Account Based Pension
payments
Minus tax on earnings
($1,008)
($31)
Net gain in super
$15,037
$5,076
Total tax paid
$14,110
COMBINED TAX SAVINGS
$4,646
$9,464
Source: Australian Securities and Investments Commission moneysmart website, as at September, 2016. The individual is not real and the hypothetical case
study is provided for illustrative purposes only. It should not be relied on as personal, legal or taxation advice, nor does it take the place of such advice.
Assumptions:
• 2016/17 marginal tax rates
• The same employer contributions for Susan’s current situation and for her transition to retirement strategy are used.
• Investment returns based on earnings of 7% and an average tax rate of 9% on superannuation fund earnings.
Susan can enjoy her extra days off knowing that her super can continue to grow until she is ready to retire.
The downside from using a transition to retirement strategy to reduce your work hours is that it may leave you with less money
for retirement. You might want to talk to an ANZ Staff Super financial adviser on 1800 000 086 before you adopt this strategy.
Live the life you want
ANZ Australian Staff Superannuation Scheme
8
Ready to retire – let us help you
Alternatively, perhaps you’re ready to say good-bye to work
but are worried about saying good-bye to a regular salary.
Again, your Scheme has the answer.
Opening an Account Based Pension with the Scheme lets you
use your super to receive a regular income in retirement. The
benefits include:
Choose how often you get paid
You can receive regular monthly, quarterly, half yearly or
yearly payments.
Defer lump sum tax
You can continue to invest your savings and defer any lump
sum tax.
Draw down lump sums
You have the option to a draw a lump sum payment once a
year, or the entire account value.
Pay less tax
If you’re age 60 or over, no tax is payable on your pension
income or investment earnings.
Take care of loved ones
You can set up an income stream to pay either a reversionary
pension to your spouse, or a lump sum to your dependants,
after you’re gone.
How does it work?
It’s easy to set up an Account Based Pension. Simply transfer
your existing account as well as any other super funds you
have into an Account Based Pension with the Scheme. The
amount you have invested, investment earnings, fees
deducted and your pension payments plus any lump sum
withdrawals you make will determine your Account Based
Pension balance. Each financial year you will need to
drawdown a minimum amount set by the Government from
your Account Based Pension and payments will continue until
your balance is exhausted.
Retirement Planning Checklist
Now that you know what your options are, we thought
it might be useful to provide a short retirement
planning checklist.
First, consider some retirement lifestyle questions:
Will you continue to live in the same house, move,
or downsize?
Do you want to work full-time, part-time, retire completely
or dedicate time volunteering?
Live the life you want
What about your partner – what are their plans?
Do you want to spend more time with family and friends?
Do you want to travel and what leisure activities or hobbies
will you pursue?
What household goods might need replacing and what
other purchases might you like to make?
Will you need to upgrade or purchase a new car and/or
caravan?
Do you need to consider your health?
Next, consider some financial questions:
What is you desired income in retirement and how much
super and other savings will you need to fund your desired
income?
How long may your super and other savings last?
What debts do you still have?
Do you need to take into consideration your partner’s
super?
Can you make extra contributions to your super now?
Contributions can be made from after-tax pay or pre-tax
pay (salary sacrifice).
Have you chosen an investment strategy to match your
goals?
Have you consolidated your super into one account?
Could you have lost super?
Are you eligible to receive a tax offset by making spouse
contributions?
Could you boost your super through a Transition to
Retirement Account Based Pension?
How much will you transfer into your Transition to
Retirement Account Based Pension or Account Based
Pension?
If you’re under 60, have you checked the tax rate that
applies to payments from your Account Based Pension?
How much do you want to be paid from your Account
Based Pension and how frequently?
Are you entitled to any Centrelink benefits?
To help with your decision-making, read the Account Based
Pension Product Disclosure Statement available on the Forms
& publications tab at www.anzstaffsuper.com or give an
ANZ Staff Super financial adviser a call on 1800 000 086.
ANZ Australian Staff Superannuation Scheme
9
About ANZ Staff Super Scheme
The ANZ Australian Staff Superannuation Scheme is a fund
for current and former employees of ANZ and its
associated companies.
The Scheme offers you flexible options no matter what your
age. With competitive fees and performance, a range of
investment choices and competitive pension options, we’re
here to support members through their savings journey and
into retirement.
Remember also, we’re here to help. For advice on all your super
and retirement options, call an ANZ Staff Super financial
adviser on 1800 000 086.
Important notice:
In preparing this document, the Trustee has not taken into
account the investment objectives, financial situation and
particular needs (“financial circumstances”) of any person.
Accordingly, before acting on the advice contained in this
document, you should assess whether the advice is
appropriate in light of your own financial circumstances
and consider contacting your financial adviser.
ANZ20118_Pensions campaign 2016_0816_FA
ANZ Staff Superannuation (Australia) Pty Ltd (Trustee), the
Trustee of the ANZ Australian Staff Superannuation Scheme,
has entered into an agreement with Australia and New Zealand
Banking Group Limited (ANZ) under which ANZ’s financial
advisers have been engaged to provide Scheme members
with general or limited personal financial advice about options
available within the Scheme over the phone for no extra
charge. If you require more complex personal advice, you’ll be
given the option of receiving comprehensive personal advice
from an ANZ financial adviser and ANZ will charge you a fee for
this advice. These financial planning services are provided by
ANZ’s financial advisers under ANZ’s Australian Financial
Services Licence number AFSL 234527. Any advice provided by
ANZ’s financial advisers is not provided or endorsed by the
Trustee and is not provided under the Trustee’s AFSL.
Issued by ANZ Staff Superannuation (Australia) Pty Limited
ABN 92 006 680 664 AFSL 238268 as Trustee of the ANZ
Australian Staff Superannuation Scheme ABN 63 810 127 567.
You should consider the relevant Product Disclosure Statement
before making a decision in relation to a financial product.
RBA Section in Detail 15 October 2015
www.anzstaffsuper.com
ANZ Australian Staff Superannuation Scheme
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