Super Insurance

Let's face it, insurance can be a pretty boring topic and difficult to understand at times, but it is very important to be aware of the options and choices available to you.

Insurance through super is something that can easily be looked over and forgotten about after you become a member but it's actually easy to get sorted - so there are no excuses to put it off any longer!

Just to give you the quick low-down, most Quadrant members get an automatic default level of insurance when joining the fund but can choose to change this at any time. You can also apply for income protection insurance which will cover you for temporary loss of income through illness or injury.

Remember accidents and serious illness does happen. We all know families who have had to make changes to their lifestyle due to cancer, heart attacks or serious accidents, for example, so don't be caught out.

If you would like to change your current insurance arrangements through Quadrant simply fill out a Tailored Insurance Application form and if you would like to apply for income protection insurance you will also need to fill out a Personal Health Statement (both can be found in the PDS.)

For more information visit our website or call us on 1800 222 209.

Did you know?

• Nearly 10% of Australian full time workers are unable to work due to chronic illness
• Almost 1 in 5 Australian adults will experience a mental disorder
• Around 1.7 million Australians aged below 65 are living with a physical disability.

New Year - new retirement plans for 60 year olds

The government has recently been discussing possible tax breaks for older workers to encourage them to continue working beyond retirement age. This would be good news for those concerned, but did you know there were currently other advantages to working beyond the age of 60.

Transition to retirement, is a strategy for people who are not quite ready to leave the workforce and go into 'full-time' retirement. You are able to boost your super savings while you are still working by salary sacrificing part of your regular income into super. By doing this you are only paying 15% tax rather than your marginal tax rate. You can then supplement your current income by drawing money from your super savings through a super pension account.

Another bonus is if you are over 60 you don't pay tax on the income you receive from a pension.

There is another way this strategy may be able to work for you. You can reduce your work but not your income by cutting back your working hours and supplementing your income from a super pension which you can start from your existing super savings.

We have just produced a new brochure on transition to retirement which you can check out online, or you can call us on 1800 222 209 and we will send you a copy.

Did you know?

67% of superannuation savers admitted they didn't have enough money to reach their desired retirement income according to the 2009 Retirement Income Report.

New unit price pages online now

This week we launched our new look unit price page on our website. We've changed the format to make it easier for you to understand our super and pension unit prices.

The new format lets you view each of the unit prices in a graph to see how your chosen investment option has performed. You can see how the unit prices have changed over time as market conditions change and you can zoom in on any particular period.

You can also change the option you are viewing simply by a click of your mouse and there's a new download button that exports the unit price history into a spreadsheet.

Some really exciting news is that we are one of the first super funds that let you view the unit prices on your mobile phone. Simply type unitprices.quadrantsuper.com.au into your phone's web browser, it's that simple.

Thanks to this new technology we have now streamlined our internal processes so the unit prices will now be uploaded at the same time as Quadrant Online, which will occur every Wednesday.

Lending a hand at the Carols

This year Quadrant is a proud supporter of the annual carols by candlelight event, Carols by the Bay. The event, which is coordinated by Hobart City Council is being held at Sandown Park in Sandy Bay on 20 December 2009.

Make sure you come and visit us and help support the carol's official charity - Variety the Children's Charity. If you purchase a Variety Carols program on the evening you can go into the draw to win some great prizes, including a Christmas hamper valued at $300, donated by Quadrant.

Quadrant will also be selling hats, t-shirts, running belts and chocolates at the Variety stand, with all proceeds going to Variety.

'Tis the season to be jolly!

Quadrant Member Director Election 2009

The recent member director election has been decided. Nick Heath, Sue Buckland and Mike Tidey were elected for a four year term commencing on 1 March 2010.

How do you plan on spending your retirement?

Everyone's retirement plans are different. You may plan on working until your 75, or want to retire a little earlier. Whatever your retirement dream Quadrant is here to help you achieve it.

Planning ahead is important as current figures suggest, on average Australians will spend 20 years in retirement after they turn 65 (this is at least a quarter of your life!) Current data tells us the amount of savings for retirees aged 65 and over is about $107,000 for men and $81,600 for women, which is only enough savings to last around 3 or 4 years respectively.

According to the Investment and Financial Services Association (IFSA), most Australians will need approximately 65% of their pre-retirement income each year to maintain their current lifestyle in retirement. This means if you are currently earning $50,000 you may need approximately $32,500 annual income to live comfortably. But remember one size doesn't fit all!

There are many things to take into consideration when calculating how much you need to save for your retirement. Figuring out the best strategy that works for you is important if you either want to maintain your current lifestyle or reach new goals in retirement.

Here at Quadrant we have a team of highly qualified financial advisors ready to help you plan for your future. Once they understand the lifestyle you want to lead in retirement they will look at your current financial position and help you devise strategies to help you achieve your retirement dream.

Whatever your expectations are for your retirement Quadrant can help you get there. Call us on 1800 222 209 for more information.

Government Reviews

There are several reviews currently being undertaken by the government that may impact Australia's superannuation system in the future. The 'Cooper Review' as it is commonly known, is a comprehensive review of Australia's super system including governance, efficiency, structure and operation.

It's focus is on achieving outcomes that are in the best interests of super fund members and which maximise retirement incomes of Australians. It will also look at factors that influence the super systems performance such as: regulatory arrangements, industry structure, competition, market forces as well as fees, charges and technology.

A review on the Australian Tax System known as the 'Henry Review' is also currently underway. According to Dr Ken Henry, Secretary to the Treasury and head of the Review, "successful tax reform means improving the wellbeing of the Australian people."

The review will focus on the key themes of the ageing population, environmental degradation, managing the impacts of globalisation and technological change and affordable housing. The review will also take into consideration Superannuation Guarantee contributions and retirement income strategy.

These reviews are a chance to consider ways to improve our super and tax systems and make things better for all Australians. The Henry Review Report is due out at the end of this year and the Cooper Review will be completed by mid 2010.

Watch this space for a practical view of these reviews once they are completed.

Super fund achieves marketing excellence

It's not every day that superannuation marketing can stir up a lot of excitement, however for Tasmanian superannuation fund Quadrant, a recent relationship marketing campaign achieved great results and won an Australian Marketing Institute Award for Marketing Excellence in Tasmania.

Locally owned and operated in Tasmania with over 6300 members, Quadrant achieved the accolade following the successful roll out of a marketing campaign aimed at promoting increased membership through relationship marketing.

Quadrant CEO Wayne Davy said that the fund was delighted to receive the award which demonstrated that superannuation funds can achieve great results through well executed campaigns.

"Superannuation is not always the easiest product to explain or promote because of its complexity and sometimes dull image," he said.

"These awards are important, not just because they are provide independent recognition that we're getting it right, but prove that super can engage consumers if the message is well delivered."

Changes to super caps

There are various caps that determine the rate of tax that super fund members pay on their super contributions.

Concessional caps limit the amount that can be contributed to your super during a financial year that receive the concessional tax rate of 15%. If you make contributions to super (employer contributions plus salary sacrifice) that exceed the caps you will be taxed at 46.5% rather than 15% (ouch!)

The caps have reduced from 1 July 2009 to $25,000 (indexed) for taxpayers of all ages but there is a transitional period for those aged 50 and over.

Between 1 July 2009 and 30 June 2012 if you are aged 50 or over on the last day of a financial year within this period, the transitional concessional contribution cap for that year is $50,000, which is not indexed.

If you are over 50 and approaching retirement it is important to bear in mind that the caps will be reducing after 3 years so now is a good time to take advantage of the larger caps and boost your super before retirement.

The ATO will be sending letters directly to members that are most at risk of exceeding the cap.

For more information, refer to www.ato.gov.au/supercaps.

Australian super funds stack up worldwide

According to a recent study that looked at the top 300 pension funds around the world Australia's largest superannuation funds grew at the fastest rate compared to others worldwide over the last five years. This is despite only making up 2 per cent of the assets of these 300 funds.

The global financial crisis has affected most funds around the world to some degree. The total assets of the world's 300 largest pension funds fell by 13 per cent in US dollar terms, falling US$1.5 trillion to US$10.4 trillion. This is only the second time in 20 years that asset values have gone backwards globally.

The growth rate of pension assets in Australia is a positive sign for the future and really reflects the growing economic and financial importance of our region.

Binding Death nominations

Many members would have received their super statements in the mail this month which included a list of your beneficiaries. Did you check to see if yours were up to date?

There are two ways you can nominate how the Quadrant Trustee can deal with your benefit in the event of your death. They are by nominating your preferred beneficiaries or through a Binding Death Benefit nominations.

If you have a valid Binding Death Benefit nomination in place at the time of your death then the Quadrant Trustee must pay your benefit according to your nomination.

A valid nomination will override any other nominations that you have previously made, and will apply to all of your accounts with Quadrant.

To make a nomination or update an existing nomination you must complete the Binding Death Benefit Nomination form which must be signed and dated by you and two witnesses on the same day.

Once we have received your completed form we will write to you to confirm your nomination.

If you make a Non-binding Death Benefit nomination your benefit will be paid to your legal personal representative and/or any dependents in such proportions and conditions as determined by the Quadrant Trustee. The Quadrant Trustee will use your nomination as a guide but it is not bound to follow it. You can update or change your preferred beneficiaries at any time by completing a change in details form.

Did you know?

Dependent children can receive tax-free death benefits but if they are over age 18 and no longer financially dependent they could pay tax on any inherited superannuation. This may affect how you want to split your nomination.

Time to review your super

For many members super statements have hit their mailboxes and due to heavy falls in the share market over the last couple of years super balances may be looking a little worse for wear.

It is important to keep in mind that the losses many of us have experienced are only on paper and they can actually create super opportunities for the future.

People should try and avoid knee-jerk reactions to low or negative super returns and not switch their investments into a more conservative option. Doing this may only crystallise losses at a low point in the markets.

Super is still a long-term approach to saving and both younger fund members and those in retirement and drawing a pension should continue to have a long-term outlook.

If you are still concerned, you may like to review your super and see your Quadrant First financial advisor. There are some benefits to be had by considering your long-term financial strategy and reviewing your investment option mix.

If you are uncertain about your choice in investment option why not take our risk profile test. This is a guide that can help you figure out the right investment option to choose in view of your circumstances and investment goals.

Transition to retirement gaining popularity

According to new data the current financial crisis has only slightly affected voluntary contribution rates by super fund members, but there has been a shift in the type of contributions different segments of the population are making.

There has been an increase in pre-tax salary sacrifice arrangements among the 55 plus age group which shows that transition to retirement strategies involving salary sacrifice arrangements are becoming more popular.

This is largely due to the payment of only 15% tax on contributions rather than your marginal tax rate, which really helps boost your super in the lead up to retirement.

Do you have enough insurance?

The global financial crisis has affected many Australians in one way or another. Mainly it has made us all more aware of and concerned about our finances and investments. A recent report has found that the crisis has also made people more concerned about the adequacy of their insurance cover.

The report found that 7 per cent of people had taken out extra insurance cover since the start of the financial crisis but only 15 per cent of Australians felt they were 'very well insured.'

Insurance is something that we don't often want to think about, but the fact is most of us don't have an adequate level of insurance that will cover the family finances if things don't go according to plan.

As part of their Quadrant membership, most Investment Choice members automatically receive a standard level of death and disability cover. You can also apply for a higher level of cover as well as income protection insurance.

If you rollover funds to Quadrant you may also be eligible to transfer your existing insurance cover from your previous superannuation fund to Quadrant to further boost your cover.

See the Product Disclosure Statement for more details about Quadrant's insurance cover, or give us a call on 1800 222 209.

Facts

In Australia only 7% to 10% of active super fund members have voluntary death and disability insurance above the default level provided by their super fund.

Less than 30% of industry and public sector super fund members have income protection insurance through their super funds.

Source: www.vanguard.com.au

Investors feeling better

A new survey has found that Australian investors are 'feeling better' as returns and the economy show recent signs of improvement.

Around 46 per cent of Australian investors believe that the economic situation has improved in the second quarter, which is a huge increase from 6 per cent which was recorded for the first quarter.

As for people's personal finances 36 per cent say they are better off in the second quarter compared to 13 per cent in the first quarter.

This is a positive result, as how investors feel is a key driver of economic activity which is a positive indicator of the Australian economy as a whole.

Source: ING Investor Dashboard Survey

The Super 2009 Federal Budget

Super changes at a glance

Superannuation concessions change - From 1 July 2009, the amount of money that you can contribute to super at the 15% concessional tax rate (this means employer contributions plus salary sacrifice) will change. If you have been contributing more than $25,000 to super per year, this may affect you. If you are under 50 years of age the annual cap will be reduced from $50,000 to $25,000 and if you are over 50 years of age the annual cap will be reduced from $100,000 to $50,000. Grandfathering arrangements may apply to certain Defined Benefits members.

Government co-contribution temporarily reduced - The Government co-contribution will be reduced for contributions made after 1 July 2009. If you make personal contributions to your super and are eligible to access the Government co-contribution next year, the amount the Government will contribute to your super will decrease. The maximum co-contribution will change from $1,500 to $1,000 - so rather than the Government paying you $1.50 for every dollar you contribute (up to $1,000), it will now be $1.00 - which is still great news for boosting your super.

Other retirement headlines

Gradual increase in age pension age - From 2017 there will be an increase in the age that you can access the age pension. If will move from 65 years to 67 years by 2023.

Super pensions minimum drawdown - The Government has stated that the 50% reduction in the minimum pension drawdown amount will be extended for 2009/2010.

What's the verdict?

While these reductions do have some impact on the favourable tax environment for super contributions, its worth remembering that these changes affect a small percentage of the population and that for the majority of people super continues to represent a sound long term investment vehicle for a healthy retirement.

2008-09 super co-contribution payments

Around 200,000 out of a total of 1.3 million of super co-contribution payments may not be made by the Tax Office to us by the end of the 2008-09 financial year, due to problems with their systems.

The Tax Office will pay interest on the payments that have been delayed at the rate specified by the Reserve Bank of Australia, which is currently at 3.16%.

If you are an eligible recipient, you do not have to do anything.

The Tax Office is working closely with us on this matter and will clear the backlog of payments, apply interest automatically and make payments to us.

Interest will continue to be paid until you receive payments or it is paid into the relevant super fund.

If you are suffering hardship as a result of these delayed payments you should contact the Tax Office on 1300 139 027 to discuss your circumstances. The Tax Office can only make payments where you meet the requirements for a direct claim (when you have retired and no longer have a superannuation account eligible to receive co-contribution).

For more information, refer to Super co-contribtions at www.ato.gov.au.