Bring your super with you when you start a new job

Things to take to my new job: coffee cup, pot plant, family photos, Quadrant super account...

As an employee, you can generally choose the super fund your employer pays your super guarantee contributions into. You don’t have to sign up with your employer’s default fund – but, of course, you can if you want to.

Certain employees covered by industrial agreements and members of defined benefit funds may not be able to choose their super fund – but they are in the minority.

When you start a new job, your employer must give you a Standard choice form within 28 days. You use this form to nominate your chosen fund.

If you don't choose, your employer will pay contributions into a default fund.

While you’re allowed to have more than one super fund, it often makes more sense to consolidate your savings into one account. This usually reduces your paperwork and means you only pay one lot of fees.

So, if you are changing jobs, take your Quadrant account with you to your new workplace – all you have to do is complete the details on the Standard choice form.

Don’t wait to boost your super

It’s International Youth Day on 12 August and we want to remind you it’s never too early to boost your super. While your retirement might be 30 or 40 years away, the small things you do now can make a huge difference down the track.

Here are four simple ways to boost your super:

• your employer probably pays 9% of your wages into your super, but did you know you can also make voluntary super contributions? With compounding interest, even small contributions add up, so you’ll have more to look forward to in retirement
• as a bonus, if you make voluntary super contributions, depending on your income you may be eligible for the government’s co-contribution scheme. Basically, if you make voluntary contributions of up to $1,000, the government may match them. This means you may get $1,000 for free!
• make sure we have your tax file number. It sounds simple, but if we don’t have your tax file number then you may not receive the tax concessions you’re entitled to.
• roll over all your super funds into one account – you may save on fees and it will be easier to keep track of your savings. And, if you roll super over to Quadrant before 29 October, you could win an iPad. For more information, visit our website at www.quadrantsuper.com.au/rollover or phone us on 1800 222 209.

Extension to drawdown relief

If you're one of our pensioners who has taken advantage of drawdown relief, you’re in for some good news.

In keeping with the Federal Government’s announcement of continued support for self-funded retirees, you can again apply for drawdown relief for the 2010-2011 year.

This relief will be in the form of a reduction in the minimum payment amounts for your pension of up to 50%. To take up this offer, all you have have to do is give us a call and we'll set it up for you.

Drawdown relief over the past two years has helped retirees with pensions by reducing the need to sell assets at a loss to meet the minimum payment requirement.

Extending the drawdown relief for another year will help retirees recoup capital losses on their pension portfolios as equity markets recover over time.

If you would like to take advantage of drawdown relief again for the 2010-2011 year, contact us on 1800 222 209.

Your investment returns now on the web

We’ve launched a new page on our website at that lets you check out the latest returns, historical returns and average returns for all the investment options we offer you.

All you need to do is visit the site, click on the super tab and then the investment returns link. You’ll be able to track your returns on one month, three month, 12 month and financial year-to-date periods.

We’ve already taken any fees and taxes out of the returns – so, in true Quadrant style, what you see is what you get.

So, why not take a look? And while you’re at it, add the page to your Favorites for even easier access next time.

BPAY now made easier

We’ve made it easier for you to make super contributions using BPAY®.
You can simply pay directly from your bank’s website using your biller code and BPAY reference number.
And if your spouse is paying contributions into your account, why not get them to use BPAY, too?
But just a reminder – there are different BPAY reference numbers depending on who is making the contribution to your account, so make sure the correct reference number is used as it may affect your contribution limits or eligibility.
Call us on 1800 222 209 for more information or for the appropriate reference numbers for your account.

® Registered to BPAY Pty Ltd
ABN 69 079 137 518

Will you have enough super?

Seven million Australians will retire with less money than they say they need, ASFA research shows.

Will you have enough super to retire comfortably? And will your super go the distance? Your retirement may last more than 25 years and you deserve a dignified, financially stable and comfortable standard of living during that time.

Each quarter, ASFA publishes the annual income you need to maintain a modest or comfortable retirement living standard. They update the data quarterly to reflect inflation and they provide detailed budgets of what singles and couples will likely spend to support their chosen lifestyle.

In the following tables, a:

• modest retirement lifestyle is better than the age pension, you could still only afford fairly basic activities; and a
• comfortable retirement lifestyle is better than the age pension, you could still only afford fairly basic activities; and a would let you be involved in a broad range of leisure and recreational activities and have a good standard of living, assuming you’re healthy.

Weekly and yearly budgets for various households and living standards - December quarter 2009.

For a detailed breakdown of the Westpac-ASFA Retirement Standard budgets visit the ASFA website.

Beware of excess super contributions

Putting more money into super is a great way to save your pennies for retirement, but there are limits to how much you can contribute to super before your money gets taxed at a higher rate.

The limits depend on whether the contributions are concessional or non-concessional. Concessional contributions include things like employer contributions and salary sacrifice contributions. Non-concessional contributions include personal contributions you do not claim a tax deduction for.

For the 2009-10 financial year, if you are aged:

• under 50, and you make concessional contributions of more than $25,000, you will have to pay extra tax.
• 50 or over, and you make concessional contributions of more than $50,000, you will have to pay extra tax.

For both age groups, non-concessional contributions are limited to $150,000.

If you make excess concessional contributions, they count towards the non-concessional cap.

It’s important you stick to these amounts as the ATO is dealing out heavy penalties and tax charges for those who make contributions over the maximum amounts. The ATO says around 70,000 people could be facing penalty tax charges by later this year. Make sure you are not one of them by checking your super contribution balance for the financial year before you make any more contributions.

Federal Budget and super - what's in it for you?

You've probably seen and heard the news about the Federal Budget by now. The good news is the Budget reconfirmed the proposals announced at the beginning of May in response to the Henry Review. Below we've got some more information from the Budget in relation to super.

One of the most important changes for everyday Australians is that compulsory super contributions will rise from 9% to 12%, beginning in 2013 and ending in 2020. The government estimated $85 billion will be added to the Australian super savings pool over the next 10 years, which is a huge boost to retirement incomes.

Another change is a government contribution of up to $500 for workers earning less than $37,000.

And it's good news if you're over the age of 50, because from 2012, workers over the age of 50 with super balances under $500,000 will still be able to make concessional contributions of up to $50,000.

Finally, the government's co-contribution will remain at $1000 and will not return gradually to $1500 as announced last year. For more information on the Budget, take a look at Deloitte's Federal Budget Brief below.

Not so super gender gap

The large gap between average men's and women's super balances has again come under the media spotlight as there is a concern this gap has the potential to lead to big problems in the future.

Some of the reasons women have lower super balances is because of lower average salaries, taking time out of work to raise children and also the impact of divorce and broken relationships.

These factors are more significant when you take into account that women have a longer life expectancy than men and they typically retire three years before men of the same age. Therefore their super savings need to last for a longer period during retirement.

Women need to be aware of this issue and take proactive steps to ensure they are not left behind with their super savings. It's important to take into consideration different ways of getting more money into super during peak earning years such as salary sacrifice and taking advantage of co-contribution if eligible.

For more information on ways women can boost their super visit the Women and Super section on the Quadrant website.

Lump sum or pension - that is the question

Getting close to that all important retirement date is a time of excitement, as we can finally access those hard earned super dollars that we have been waiting so long for! Many may see this as an opportunity to take their super as a lump sum and pay off some of those lingering debts, revamp their kitchen or go on an extended overseas holiday.

According to the latest ABS Retirement and Retirement Intentions report almost 60% of Australian retirees take their super as a lump sum. This is surprising considering life expectancies are rising, as is the cost of living.

It's important to remember that super is there to fund our retirement, which we may spend 25 or more years in. We need to think about how long our funds may last.

Instead of taking a lump sum more people are taking a super pension where they slowly draw down their super savings. Through this account you receive a regular income while in the meantime, your remaining super dollars are still invested and working hard for you.

Another bonus is once you reach 60 your pension is tax free so you don't have to pay any tax on your pension payments or lump sum withdrawals and if you're aged between 55 and 59 you may be entitled to a 15% tax rebate on the taxable value of your pension.

To find out more about Quadrant Super Pension accounts visit our website or call us on 1800 222 209.

Baby boomers heading into retirement (or are they?)

That time is fast approaching when the baby boomer generation, start heading down the road to retirement… or is it?

A 2009 ABS Report indicated that one in four boomers intend to keep working into their 70's and one in seven employed Australians (aged 45+) want to keep working for the rest of their lives.

Boomers are independent, engaged and active people which make them more willing to keep working and continue to make an active contribution to their community; whether this is through part-time or casual work, volunteering, mentoring younger workers or further education.

A report in 2008 found that over half of working Australians expect to maintain some form of paid work into their retirement. They want to blend work with lifestyle rather than take the all or nothing approach. This is where the government's transition to retirement rules comes into play.

People aged 55 and over can reduce their work hours, but not their income by using a transition to retirement strategy. You can do this by supplementing your income by withdrawing a regular payment from a Quadrant Super Pension which you can start from your existing super savings, giving you the best of both worlds.

For more information about transition to retirement and how it may work for you; check out our new brochure online or call us for a copy on 1800 222 209. We also have information on our website.

Source: 2008 AXA report

What's age got to do with it?

Actually age has a lot to do with how much money we contribute to super (and spend on other stuff!)

Recent research suggests that people in the 25-29 age group only contribute the compulsory 9% Superannuation Guarantee amount to their super.

Not surprisingly, the level of contributions increase with age, and the report suggests by the time we reach the 60-64 age group we should be contributing about 27% of our incomes to super.

A hot topic in the media at the moment is Australia's ageing population and the question of whether future retirees will have enough super for a adequate standard of living in retirement.

The main message to come out of this is the importance of saving sooner rather than later. This may be easier said than done, but super funds are trying to provide as much information as we can to help!

Quadrant's website has dedicated sections full of relevant information for people in different life stages. We provide tips and advice and explain strategies you can take advantage of to help you save more for your retirement.

What does the future hold?

Expected projections are, by 2050 74% of people above age 65 will be receiving an Age Pension. This is an increase from 2.9 million pensioners to 7.5 million over the next 40 years!

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.