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Retirement Planning Webinar – 11 November 2021 | Australian Catholic Superannuation

As well as we'' ll simply give it a number of even more minutes to ensure that everyone in the waiting space can join us. Welcome everyone. Okay we'' ll get begun. Hi, everybody. My name'' s Tanya. I ' m one of the regional supervisors for Australian Catholic Super. I ' m based in Canberra. My office is on the ground flooring in the Saint Christopher ' s Pastoral Centre in Monica. As well as our topic today is one of my absolute favourites. Retired life planning. I assume it'' s a fantastic subject. I recognize it can be daunting for some people. But the reason that I truly appreciate this subject is because I'' ve seen just how much of a positive impact Super can have on people'' s retired life and their lives. So even if retirement isn'' t impending for you it'' s still vital to focus on your super to understand the role can play in what we hope is a pleasurable retired life for you. And also joining me today are my associates Phil Johnson. I feel. Hi there Tanya. Phil'' s one of our monetary planners.And ah Justin Colley ' s behind-the-scenes. He ' ll be monitoring the chat box. And also ah join us at the end if we ' ve obtained time for inquiries and also responses. Just to allow you know the presentation will be online streamed on Facebook and there will certainly be a recording offered on our YouTube network tomorrow. And also if you do desire to ask any type of questions or make any type of comments please ah make certain that you kind them into the chat box. And also Justin will be moderating them which you wear ' t answer. If you can'or state your concerns with to the end. This ' s for you Phil. Oh thanks'Tanya. Excellent evening everybody. Um just before we begin we ' d similar to to acknowledge the typical custodians of of the land on which we work as well as live as well as identify the continuing connection to the land, the water, as well as the community.I ' d like

to pay respect to the senior citizens, past, present and arising. Thanks Additionally prior to we begin, please note that any kind of details we provide in this discussion is genuinely nature. It'' s made to highlight what you can do, not always what you should do. So please put on'' t take any type of action based upon this details before taking into consideration how it puts on your own individual situations. Purposes or demands and constantly make sure you read the product disclosure statement and also target audience before you make any financial investments and also consider seeking economic recommendations to identify your finest course of activity. At Australian Catholic Super we have our own team of monetary coordinators such as Phil who can assist. Um during today we'' ll also be examining the performance of a few of our financial investments. Please additionally take note that past efficiency is not a dependable indication of future efficiency. For me, this is the enjoyable part of Retirement Planning.Thinking regarding the kind of way of living you ' d like to delight in but Phil, what do you take into consideration is important when assisting members at this phase of retired life planning? Yeah, Tanya. Yeah, I imply, this is really the start of the financial planning trip with retired life preparation. Um so, you recognize, economic coordinators, certainly, we speak a whole lot regarding funds as well as how individuals are mosting likely to fund their retired life yet obviously, it ' s all all those financial choices are all based upon, you know, what you ' re going to perform in your life as well as what your plans are for your retired life as well as we,'you recognize, typically utilize that as a beginning point to try to exercise what kind of points people are intending to attain, they delight in, kind of that they will certainly be requiring you understand cash money for or getting cash during their their the program of their retired life So.I suggest simply a few of things that people perform with their cash are detailed noted there. You understand undoubtedly a big one is is traveling.

I mean place ' t seen a great deal of that in the last two years obviously with with Covid unfortunately you know let ' s wish it ' s all beginning to go back to a normal state and you know obviously takes a trip beginning once more literally as we as we speak isn ' t it? But you understand look lots of things individuals like to horticulture, outdoor camping, theatre, travel, all those kinds of things. We'you know what are those type of points? Let ' s obtain them out on the table as component of the process of trying to exercise exactly how we we produce a prepare for you.Mm thanks Paul. That ' s great. A great deal of individuals aren ' t certain regarding the quantity of income they may require in retired life which is one of the most typical'questions we obtain as well as you recognize when we ' re speaking about what your retired life goals are it ' s terrific to to be clear on what you ' d like to achieve as well as simply placed some I guess some dollars next to objectives but we are often refer to aspa which is brief for the Association of Super Finances of Australia that release a guideline on the quantity of revenue you might need to sustain a modest or comfortable way of living in retired life. So you can see that the complete age pension really pays less than what aspa constituents as a small lifestyle and also considerably less than what asphalt assumes is the cost of the comfortable lifestyle.Phil can you take us with just how you make use of information from Bronchial asthma to help our participants with their retired life preparation. Well it ' s you understand it ' s a base. everybody is is is different.

Um and so you recognize of course it ' s a really common concern. Two really common concerns. Just how much cash do I need for my retired life and how much you recognize can I invest or will I invest? and also as I said well every person ' s everybody every person ' s various. Um yet these figures below which are you understand an outcome of a survey of Australians in retired life offer a an indication of what you recognize the averages that are spent are so'you know clearly as you'can see from the from the numbers if you would certainly like I ' ll rephrase that Australians usually as a pair as an example comfy retirement is about sixty-three thousand dollars whereas something that ' s called an extra small way of living individuals typically would certainly invest about forty-one. Um and also then naturally there ' s the the age pension. Um and also it ' s there. We we put the age pension there to you know as Tanya ' s already said. I indicate to compare it for you. You can see that if for a couple

the max significant pension you can get has to do with thirty-seven thousand dollars. which isn ' t quite enough also for a a'moderate way of life. So of course that ' s that ' s how we make use of the numbers truly to help individuals to start to get a feeling for what is spent on typical yet as part of the Financial Preparation procedure we ' ll we really attempt to be a little bit more accurate than that as in our preparation by speaking to you about what what we assume you might need.Mm. Among the fascinating points about this as'for research is you understand a great deal of individuals commonly claim well what ' s that? What ' s the amount of incredibly I should have? And also I looked right into it and aspathy that you only require regarding seventy 000 conserved in your very to money that modest way of life due to the fact that a huge component of your lifestyle expenditures will be covered'by the age pension.So that ' s$70, 000 is actually just mosting likely to connect that void between small as well as fuller age avoidance but yeah. And also the figure going extending that is I believe it ' s 6 hundred and forty thousand for comfortable. That ' s right. That ' s. Yeah. Yeah. There ' s there ' s a large difference between both. Yes. Yes. Yes. I I believe it ' s a, you know, I assume it ' s a really great factor you made. I indicate, the thing is the number of times have I heard people state, oh my friends told me I require a million dollars. Mm. You know, to to retire and well, that possibly best however on a regular basis you you wear ' t demand possibly as much as what you believe as a result of the the influence at some time in your retirement getting some kind of support from the federal government. generally in the type of the age pension. Hm. Yeah. We we actually discuss that a little in the future in the discussion where we have an appearance at some what we call retirement forecasts as well as we can take you with exactly how that will certainly play out.Pretty interesting. The information also gets on this slide. This is where Aspen damage down. The I think features of the comfortable and also small retired life or or what you might potentially manage simply on the age pension.

If you obtained any remarks around this? Uh yes well that that that ' s it ' s all you recognize That ' s a fascinating point clearly. Um you know what what do they suggest by this moderate and also you understand comfy terms. Currently, I ' m sorry the the writing ' s a bit a bit a bit little but the list there do try to as for do attempt to discuss sort of roughly what they indicate by several of the by those terms and also they simplify right into you know, a'a variety of various elements of your costs. I suggest, for instance, the leading one is chatting about holidays. To make sure that ' s crucial to a great deal of people. Um you understand what ' s comfy you recognize so it claims you recognize you can have a holiday a yearly holiday. Um in Australia. yet what ' s small? Um well a couple of time-outs in a in Australia near where you live.So, it doesn ' t seem like you ' re fairly taking a trip quite as far. No, we ' re not mosting likely to Paris every year. Yeah, yeah, yeah, that ' s, that, that ' s, that ' s, that ' s right, and also, as well as as well as you know, you understand,'simply, you'understand, type of extending, I won ' t clearly experience the entire table with us this evening, we ' re mosting likely to be here as well', way too long, yet but and this details ' s on the Asfa internet site by'the method. Um, however you understand, it speaks about other, other points like, what ' s the you know, discussing, you understand, going to a a dining establishment and also the last column there speaks about what an age pensioner can do, it discusses having the the club Unique. You understand, whereas the the the individual in the comfy retirement can you understand can pay for, you recognize, clearly, you understand, to go to a much better high quality restaurant than and also points like points like this. So, you recognize, look, it ' s a bit of a rough tool.It is a rough device. It attempts to provide you, it attempts to provide you a concept. Yeah. The restriction stands apart to me is the the bottle of white wine versus the residence mixture. Yes, Yes. Yeah. Yeah. That that ' s that ' s right. So, it appears like all the age pensioners are on the home brew from from from'this from this table. Yeah what are some of the resources for funding retired life Yeah so you recognize I suggest we the recent kind of behind this this slide is you ' re here this evening chatting to ah me from a a financial coordinator functioning for a very fund but there'there ' s a lot a lot more well it can be a great deal even more to just how you money your retired life than than simply your incredibly. Obviously super is very important. There ' s you understand there ' s no question regarding that. However quite typically individuals have some of investment so could be money in'the bank or shares. Occasionally individuals have intending on spending or have invested in you understand financial investment buildings as well as they have rental income.That might be part of the component of their time and plan. Um the household home is on that on this chart in an example that would be you recognize the great deal of individuals intend on downsizing at some time. not always for monetary reasons. But in some cases it clearly also releases funding that can be utilized to money retirement. So it ' s simply give you the suggestion that you know when when we ' re doing the financial preparation we ' re we ' re taking you ' re trying to take the whole circumstance into account not just the not simply the super.Yeah wonderful. Thank you. As well as Phil can you'please explain the tax advantages spending within Super for Retirement in contrast to I presume those other yeah yes yes. I suggest I think a great deal of individuals are type of type of really generally mindful that very is an excellent investment in terms of tax compared to a whole lot of various other investment. This client ' s just quite attempting to merely measure that for people. If if you wear ' t recognize Um extremely extremely funds only pay 15 %tax on the earnings when you ' re in the in the stage where you ' re still contributing right into the super.Um then yet when you move to a pension after that the tax can be can be the exact same as extremely'when you ' re in what ' s called a shift to retirement

pension. For a great deal of individuals when they retire they ' re beginning they ' re not starting transition to retirement pensions. They ' re beginning the what the the item on the on the right there. Account based pensions. There ' s no tax on the earnings. And so look once again type of at a high level. I believe people would most likely have the ability to see look it ' s wonderful if you can have an account-based pension plan pay no tax obligation. Well that ' s undoubtedly very good. Even incredibly paying 15 %tax obligation while you ' re still working change to a time pension.' It ' s still reduced tax obligation. As well as that ' s you understand that ' s extremely you recognize that that, over the long-term, that makes a big distinction for money you can conserve for your retirement Mm, I truly like that meal tax regulation portion of that slide there. I believe that ' s, that ' s one of the points that'truly informs the tale about exactly how extremely emulation jobs as well as we ' ll touch on that a little later on also. Superb. As well as Phil, can you please take us via when someone can access their soup bar and also under what conditions? What? Yes, yeah, that ' s that ' s that'' s right. When again, we'' ve tried to sort of provide put it into you can access your or when you you recognize start to draw down or money your retirement when can you start to get access to your extremely and we'' ve type of damaged down to say three wide groups. Um if you retire after after age 58 at the minute. after that you will certainly be able to access your super. Um now I simply wish to caution everyone that is providing that'' s of that age. Um there are tax potential tax repercussions of doing it under sixty. Um however indeed it can be accessed if you if you retire at that age. Um as well as that'' s you need to admit what'' s called your preservation age is the is the technical word for it.Um you in between 60 as well as 64 you you can access your extremely well if you retire but in enhancement to that if you leave a task so you put on'' t really have to retire if you alter work so you recognize rather frequently individuals I speak with they'' re not actually retiring at 62 for instance they'' ve made a decision to go you know they could determine to work less hrs in a different work or something like that they can still prospective accessibility their their their very. At age 65 however points come to be rather basic regarding accessing the incredibly due to the fact that primarily at sixty-five no matter whether you'' re functioning or otherwise you you can access your very. So all problems are raised at 65 under the existing costs. Yes. I'' ve got a I ' ve obtained a concern as well as one that often a great deal of my participants that that send me in Canberra ask me.There ' s a

great deal of college teachers as well as as well as a great deal of teachers as they'' re coming close to retirement They. really would have an interest in remaining on guides in a manner of speaking as well as perhaps doing some laid-back training. If if that'' s someone that you'' re supplying guidance to and they'' re under the age of sixty-five would they still be able to access that super if they remain with their employer but you'' re from complete time to function component time or laid-back. Um my understanding is that in the Catholic education system that if there'' s if they ' re remaining with helping the exact same diocese. Mm. Um then that wouldn'' t be that wouldn ' t be a that would certainly not be thought about feasible. No. No that'' s what I believed to do. To make sure that'' s certainly one to people to bear in mind when they are thinking about what they'' re mosting likely to do at that tail end of their profession and you understand that may be worth having a conversation with payroll or yeah.One of your regional supervisors or among our monetary consultants on how to deal with framework which plan to enable you to access your extremely. Okay. And fuel. Why is wage sacrifice? Oh all right so so we ' re now talking about adding to super and also we are kind of on this style regarding the benefits of super and among things you can do in incredibly is income sacrifice which I believe a great deal of people understand and also what is the the point of wage compromising or placing cash right into super out of your income. Um well the concept is that you can possibly conserve tax. So, this slide is simply basically attempting to direct present us to this concept of the minimal tax price system which individuals gaining various quantities clearly pay different prices of tax obligation. I think most individuals generally understand that. So, may be, may go the following slide. So having, you know, having type of you know, you know, standard knowledge that is the limited tax obligation price system there ' s a little instance below which tries to reveal you what the the claim a tax obligation saving that a participant can make if they determined to do a little bit of wage sacrifice to super.So in this this instance this I assume this yeah they earn a hundred 000 a year.

Um and also on the table on the left hand side the person is not making any kind of salary sacrifice contributions to super and on the right hand side they income sacrifice five percent of the income. And also everything is relied on a on a on a biweekly basis to try to show individuals what really happens on your on your payslip kind of point. Um so once again keeping that you understand going into excellent information I believe you can kind of just following down the 2 columns. You can see that this individual they go from refraining any type of sorry sacrifice to doing$ 192 a fortnight. Okay. Um since a hundred and also ninety-two bucks is a tax obligation reductions. Um so, you can see there when the gross income on row is there that the individual ' s taxable income has actually lowered and since their taxed income has minimized, they will certainly pay less tax obligation but what it ' s attempting to reveal you there when the take home pay is that they do obtain they do obtain a 27 less pay.So, you do', you understand, sorry sacrifice does indicate you you put on ' t you wear ' t have the very same

amount of take residence pay but you haven lost the entire a hundred and also ninetytwo. So you'had actually 192 appeared of your income compromised off to incredibly. A hundred and also ninety-two However your pay just dropped 127 As well as the distinction in between those 2 numbers which is what regarding sixty-six dollars. That ' s the tax saving.So that ' s that ' s the saving you save money on the tax obligation. As well as after that you can see right down the bottom row it tries to calculate it around for us. It claims that that would just just little example alone doing a hundred and ninety-two a fortnight. Um this person would certainly save one thousand 7 hundred $16 per year. and once more extremely if you ' re doing that for a a long period of time which individuals remain in incredibly due to the fact that it ' s you know it ' s a long term investment. Um that ' s seventeen 000 extra conserved'in in in tax. Which'money ' s also placed in super and the strategy for that is to expand at the very same time as well in the tax efficient atmosphere. That ' s right.

Yes. Not just is saving that much tax obligation over the 10 years, yet you'' re also expanding your incredibly and also ideally you obtain that intensifying effect where you know it'' s snowball into a great little yeah that'' s that'' s that ' s. Fantastic. Okay. Right here ' s a technical slide and also I ' ll try not to obtain also slowed down in the information. What we'' re speaking concerning here are the different types of contributions. We ' re going to begin with what ' s called concessional contributions. And the reason we'' ve used World Wild the the not we yet why the term concessional is utilized. It'' s one more word for decreased price or a price cut. In various other words many people for a lot of individuals concessional payments are less costly than a non-concessional contribution. This is the means of the federal government'' s giving us a reward by way of a tax obligation microtex price cut to save right into super.So we can have even more cash at retirement and count less on the government. So there ' s technique in the chaos. Okay so you ' ll see on this slide we ' ve highlighted that these types of payments are taxed at a flat rate of 15%for those people with income much less than $250, 000. Per annum. As well as you may remember a pair of slides back we were chatting concerning the minimal tax prices and also the low tax prices to keep in mind. Uh they were from 18%all the means as much as 45%and also that ' s without consisting of Medicare Levi. So this is another factor why we are encouraging individuals to conserve into very. But since of this bargain that the federal government is giving us with this tax obligation break or tax obligation incentive. They ' ve likewise put a cap on this. The yearly cap for this year is 27'and also a half thousand dollars. As well as that 27 and a half 000, catches every one of those different kinds of concessional payment so it ' s your superannuation guarantee which are now 10%of your income per annum.It ' s with your income sacrifice. As well as it ' s crucial to remember that if you have even more than one'incredibly fund the cap takes into consideration contributions going to every one of the extremely funds.

I mean place ' t seen a lot of that in the last two years obviously with with Covid however you recognize allow ' s wish it ' s all starting to go back to a regular state as well as you know undoubtedly takes a trip beginning once again actually as we as we talk isn ' t it? A whole lot of individuals aren ' t sure about the quantity of income they could need in retired life which is one of the most common'inquiries we obtain as well as you know when we ' re speaking regarding what your retirement goals are it ' s terrific to to be clear on what you ' d like to attain and also just put some I guess some dollars following to objectives but we are usually refer to aspa which is short for the Association of Super Funds of Australia who release a standard on the quantity of earnings you might need to sustain a modest or comfy lifestyle in retired life. It ' s just provide you the idea that you know when when we ' re doing the economic preparation we ' re we ' re taking you ' re attempting to take the entire circumstance into account not just the not simply the super.Yeah wonderful. That ' s the tax saving.So that ' s that ' s the conserving you conserve on the tax obligation. Um as well as once again extremely if you ' re doing that for a a long time which people are in incredibly because it ' s you recognize it ' s a lengthy term investment.Not simply per very fund. I had a conference with a participant recently and she'' d wage sacrifice last fiscal year 25, 000 right into her Australian Catholic very fund however she was additionally getting her employer, superannuation, guarantee contributions into an additional incredibly fund. So please maintain that in mind. Um it'' s an actually crucial factor. And also the next slide we'' re discussing the opposite. So this is non-concessional payments and they'' re not concessionally taxed as well as that'' s why you can put even more of this right into extremely every year. This rate is a hundred 000 per annum. As well as the cash you use this generally originated from your savings account before it lands in your checking account you most probably would have currently paid tax on it based upon your revenue as well as those low tax rates outlines a number of slides back.Remember anywhere between 18%and also 45%. So payments under this type of arrangement or this cap simply remember you put on ' t pay any kind of tax obligation as it ' s going right into super since the concept is that you or someone has actually currently paid tax obligation on that cash prior to it can be found in. There'' s some really fascinating approaches that you can use with these kinds of payments but it'' s likewise essential to be familiar with the age based limits.And the restrictions for those complete very equilibriums over one 48 million bucks So we suggest you look into our contributions reality sheets for more details as well as definitely think about individual economic recommendations before making any big payments to extremely. Um back to you Phil. Oh fine so I suggest thanks Tanya. So you ' ve just covered off you know two of the significant'kinds of contributions. However I mean there ' s a you understand'the pair of various other you recognize I most definitely see as well. Um one is called scales down. The various other one'' s called the spouse contribution. Particularly the the downsizer payment has actually been one I presume it'' s you understand it ' s been around for a few years now yet still feels relatively current. Um so what the federal government did there was they stated that if you ' re over 65 based on a you know a variety of problems which'I won ' t go into every one of them tonite however the based on conditions such as you recognize having been your home for even more than 10 years.

You can potentially take 10 sorry ten thousand. Three 00 thousand. 3 hundred 000, dollars from the profits of scaling down. as well as placed it right into very as well as you understand search it'' s you understand doing that on a reasonably regular basis. I was mosting likely to ask that inquiry. Is it a preferred method for your clients? Well yeah I imply up until once more up until relatively just recently it was fairly hard for individuals over 65 to be able to place much money in into super. therefore you know when this came along and also you'' ve obtained to in fact be 65 in order to do this one. Uh so so yeah no it it'' s actually confirmed to be fairly quite fairly preferred. Um and additionally I need to state it'' s per person. So, if for a pair, it'' s$ 300, 000 each. It'' s a great deal of money. Uh yeah. Yeah. 'so yes. So, that ' s I believe that ' s been a really really'positive thing that ' s that ' s the government ' s done on on because sense.Um so, that ' s the downsizer. Um you can make partner contributions. Um so, what ' s the benefit doing that? Um you you may be able to save some tax by making a spouse contribution. Um so if it ' s not not of the order of what we ' re speaking about with the downsizer ' s contributions but and look those partner contributions undergo the non-concessional payment. Limits. Um however you can you can claim a tax rebate by making a well potentially I will certainly say case a tax obligation rebate by making a contribution to into your partner'' s extremely additionally and also for some people they they desire to do that since they want to I put on'' t recognize frequently in some cases they claim to me we desire to align the amount in each other'' s very by putting it right into the spouse as well as things like that. The consolidation that'' s not truly a payment. It ' s just kind of making the point that in some cases well what we do do see is that people are you know consolidating extremely accounts.

Um or merging them and they'' re doing that you know for a variety of factors. Um it might be for you understand to simplify their their affairs. as well as it also could be to attempt to minimize the quantity of fees by paying greater than one extremely fund costs. Um you have actually got ta be a bit careful with that said due to the fact that if you'' re mosting likely to settle funds you you require to ensure that you'' re not going to shed any advantages as well as points like I wear'' t recognize insurance coverage and things like that if you do that type of thing.But yet yes

it'' s yet simplification you know I'' m all for I ' m all for simplification. Uh frustrating Fantastic. Mm. Thanks. Thanks. This one simply speaks about couple of the manner ins which you can access your incredibly when you ' ve reached you recognize those preservation ages and also you ' ve satisfied those numerous problems of release. Phil have you obtained any comments about this? Uh of course so truly as the slide describes two main means. Swelling amount or earnings stream. So you can when you'' ve fulfilled a a conditional launch. When you'' ve obtained access to your super you can take cash out of it as a a swelling amount and also cash money it out.Um the various other means is to draw it as a regular earnings. I I think the most likely the factor we'' re attempting to make below is this. If you maintain your cash if you'if you ' ve been functioning'as well as you ' ve got your incredibly account'you ' ve been adding right into. You it doesn ' t just start immediately paying you an income stream. Yeah you can take lumber summons from it when you retire however it won ' t offer you an earnings stream. You need to become a pension plan product rollover is the word we we utilize. Um a revenue'stream. which ' s therefore you know and normally these sorts of income streams or account based pensions are the sort of products that we use in Australian Catholic Super.Um income

stream'' s popular for people that need routine income to fund their retired life Fantastic. Would certainly prior to we jump in much more into those income streams. What are a few of the I suppose an usual circumstances where people want to access a round figure from their extremely after retired life Oh. at some point sadly probably occasionally I wish to pay off some debt. Mm hmm. Um to ensure that'' s you understand that'' s that ' s that

' s among one of the reasons.Um but I suggest there ' s whole lots of factors. I imply they may be an additional an additional one is they wish to provide cash to youngsters. Um so that'' s rather a rather an usual usual one. Um aiding aiding children. Um may be may be you know taking place a journey or renovating your house. Um you know all those sorts of all those type of points. Or it can be that they they they'' re they ' re taking a lump sum because they intend to do have a few other of investment You recognize so you recognize, they may be wanting to invest in. I wear'' t know. Occasionally, they intend to buy a financial investment residential property or something, something like that. They'' re the major type of ones that I hear. Yep. Okay.

This this love is chatting a little bit about what you pointed out previously, how when you'' re in your working life, you ' re adding to super turn it around when you reach that old age as well as. Yeah. Yeah. Yeah. You start pension account and as you claimed, it doesn'' t just take place immediately. You actually have to take activity. That'' s. Documentation and also open up the accounts. Is that something that you do on a routine basis with your clients? Oh, yeah. Definitely. You know, this is this is, you understand, extremely, extremely, extremely, very usual. I type of may have leapt the gun right here a bit or he may have described that to this slide. No. yet but yep, I indicate, that'' s that ' s that that ' s right. It ' s you you have these 2 phases of super as well as lots of people are acquainted with the the one on the left-hand side due to the fact that you understand, that'' s they ' re not retired. Um yet at some factor, generally, people retire and relocate right into the into the pension plan phase and I think the interesting factor there probably is, in particularly in the pension, that, yes, with a pension plan, you can, you know, get a normal repayment, however you can also take lump sums.So, if you do require, you recognize, state, you understand, it'' s not unusual for someone that'' s in fact taking a pension that stated, I, I, I intend to purchase a new car, I, I require, you understand, I need some money to purchase a brand-new auto. So, you don ' t you can just take money out of your out of your pension plan in addition to the routine pension repayment. Quite adaptable. Yeah, that'' s. It ' s one of things that I I was aiding among my participants with this week, First Lady I'' ve satisfied face to deal with since lockdown and also she remains in this situation where she simply popped into the workplace due to the fact that she wanted to take a round figure from her pension plan account.Um to pay for

something. Yeah. As well as and it is a very typical circumstance. You you'' ve really got this one account that can function for a great deal of your requirements in retirement pay you normal revenue that'' s nearly there to change his wage that you'' re no much longer receiving yet additionally act I expect like a a bank account so to speak when you can take a lump amount. Um what you can'' t do which a great deal of people don ' t know is once you ' ve got a pension account

you in fact can'' t placed the money back into it.No. No. You can ' t include any type of money to an existing pension as well as so in some cases individuals keep a little extremely represent that reason. That ' s. Or perhaps they need to open a brand-new incredibly account'if they ' re you know to assume all points that are as a typical scenarios. Yeah. Yeah. Yeah. And also I guess we didn'' t sorry. I was going to say I wear'' t understand whether I highlighted the point that the super pays 15% that that last lines you understand the extremely wherever you remain in the very. Cuz remember nobody'' s mosting likely to nobody ' s due to the fact that mosting likely to automatically open your pension plan. So whatever your cash'' s in the extremely it ' s 15 %tax obligation on the incomes. Whereas transfer to the pension plan no tax obligation on the make That'' s right and also when you ' re taking a look at our various investment alternatives and just how they perform.So our investment performance page of our web site. If you ' re in precisely the exact same financial investment in very and you check out performance there it ' ll have a reduced return than specifically the very same financial investment in the pension account there that the same investments the very same funds. Mm. The distinction in between the returns is ones had tax deducted and the other one hasn ' t so that ' s. It should be an incentive to to really take action or at least think about taking action when you obtain to that factor. Mm. Where you understand you can access your incredibly. So have having a little a consider that as well as exactly how that might help you. Alright. Now we offer an alloted pension product. Um as well as you can attract on your very to money your retirement That ' s. rationale. Looking at the slide you can see the flow of money where you start by pressing funds into Super by getting and making contributions. Then when you ' ve retired or gotten to preservation age you can then begin pulling the funds out.So it ' s nearly like a a push and a pull if you ' re under the age of 60 Phil'mentioned this earlier. You must be aware as well as you should be prepared to be paying tax obligation on this pension revenue. There will certainly be a 15% tax counter. Once you ' ve got to age 60, the pension plan income will be received free of tax. So 60 is kind of the golden era where you can begin accessing your super free of tax. That ' s thinking you ' ve satisfied those other problems of release that'we talked around earlier which is basically a little a retired you ' ve discontinued unemployment setup. Um you ' ll also notice that the quantity you take out from your pension plan account goes through minimums as well as the minimums are based as a computation. Uh a portion of your account equilibrium identified by your age. That changes well it ' s just recently transformed with COVID as well as the monetary recession that came with COVID as well as additionally took place throughout the GFC as well where the the government even the federal government needs you to draw a minimum from these matters because they don ' t desire them to last for life because remember they ' re a tax obligation free financial investment so they ' re made to be drawn down during the'the time of your retirement So.They have introduced these minimums but during the GFC as well as throughout Covid they cut in half the

minimums and that ' s simply a short-term procedure. It ' s in fact exercised fairly well for a lot of individuals throughout Covid since they haven ' t required the revenue since they ' re not investing it on things like travel et ceter etcetera. So a lot of people have actually been rather delighted to decrease their draw down. Couple of key factors to note with this. There ' s no maximum. You can have a a tiny pension plan account equilibrium and also decide that you desire to take$10, 000 a month from it.And that ' s great. As long as you ' re not under a change to your retirement arrangement since

there is optimums. So you'can draw on a regular basis as high as you like but you ' ll quit receiving any type of payments the account equilibrium has actually deteriorated. So as long as you are keeping the minimum you can be adaptable with how much you take. And also you can transform that as well. So we have forms. We aid our members if they ah you know going with ah a patch as an example where expenses are fairly high. And after that requiring a little much more revenue than what they typically would obtain. After that you can change your routine pension payments and after that if you intend to alter it back as soon as you ' ve obtained with that patch.Um you can so those kind of plans. So our item is fairly flexible In that regard. There is one more interesting ah pension plan product that I I might ask

Phil to explain this one. Ah ah oh no this is oh sorry this is the normal one. I ' m jumping in advance of myself below. Retired Choice is our typical pension product. Sorry concerning that Phil. Yeah so Retired Options is the one that you do have a great deal of versatility. You ' ve obtained control over just how your financial investment decisions ah you recognize how you ' re invested. You as much as you Um you can choose your funds. You'can choose just how you make use of them however it ' s it ' s these this one ' s for me as well so as well as we provide 13 different financial investment choices for your money in the retired choice item and also you can pick the alternative that finest matches you and your cravings for financial investment risk and if you ' re wondering what am I talking about with cravings for investment risk well that ' s really where an economic planner can aid determine and it ' s things like are you a conservative anxious financier or are you the opposite at an end of the spectrum where you could be a really seasoned investor and also you ' re fairly comfy with the the changes of turns.So we ' ve obtained 13 alternatives that you'can choose one or a handful of them that are going to help you.

I constantly recommend that you look for financial guidance especially when you come into this phase of your life where you do desire to set yourself up for retired life. . feel this is the challenging one and also it ' s a really interesting product. It ' s called Retire Smart however it ' s certainly except every person. So feel if you want to such as'yeah so so so yeah just placing my little'slant on points we ' ve obtained 2 different pensions.Um we ' ve obtained retired option which Tanya was simply speaking about as well as we ' ve got retire wise. They ' re both account based pension plans.

Um they both just they both provide normal revenue in retirement They'. both free of tax investments. Um it ' s just that the one as Tanya just stated retired choice is it gives you the capacity to the financial investment for just how much return you ' re attempting to achieve. Just how much risk you ' re prepared to take. All right so retire smart is more I kind of try to possibly use the word like collection and fail to remember kind of'technique. As well as they ' re like they won ' t claim fail to remember but it ' s it ' s however it attempts to type of make it a simpler a a strategy for the for the participant. but it'' s not as tailored. So essentially the suggestion is that the fund is making decisions in your place concerning exactly how the money must be spent. So it ' s not really tailored for you.But the yet the the major the main way it works is is this. It it attempts to place some money I believe there ' s a can we just most likely to the next slide momentarily one? Yeah so you can see there this idea this oh we we like to call them buckets. There ' s 2 containers within the within this retire clever pension.One is money and one is growth properties. So the idea is you have your pension repayments since you recognize'you ' re mosting likely to require regular income in retirement You.

you have them drawn out of this cash bucket. however naturally I think lots of people understand you can ' t earn quite cash in cash money. So you wear ' t desire to have also much money there. However it is excellent to have some money there. It ' s normally a pair of years worth of the pension repayments go right into the'money back. as well as yet after that the bulk of your cash is purchased this development assets container. As well as so the fund is choosing that. That that growth pail. Um and also as well as so the idea is the mass of your cash is type of invested for the long-term. Due to the fact that you need the development to assist money your retirement Um and as well as the cash money pail ' s helping pay your pension repayments. And naturally what after that ' s occurring exists is money moving back as well as forth between the'the development pail as well as the cash money bucket.The main most likely the major reason being is undoubtedly if you ' ve got a cash money pail and you ' re drawing down on it, it ' s going to go out

of cash. It needs to be topped up however it ' s all automated. ', that ' s you know, that and that ' s kind of like the beauty of it. You understand, from the members factor, the funds doing it all for'you. Well, that'' s automated. Yes, I assume so. Yeah. Yeah. You ' re not getting you ' re not obtaining a a a a product which is going to give you'a financial investment which is'customized for for you which is what the retired choice does Okay. That ' s interesting. Yes. Okay. Thanks. This is an actually warm topic. Frequently we fail to remember to believe concerning this durability. You recognize my grandma lived till she was ninety-four. And I ' m going for a hundred. Just how does this impact points really feel when we ' re aiding our our

participants prepare for their retirement Yeah? my granddaughter stayed in 94 as well yet I ' m not going for a hundred. Ah so Um so yeah. Well, I think we ' re simply type of changing tack a little bit yet we ' re on the topic of pension plans and also exactly how lengthy your money should last. You know, well, you understand, how long does your pension plan have to last? That type of thing. Um so, you recognize, I believe what what this slide is truly simply doing is is elevating several of the problems that we reviews monetary organizers. Um when can I retire? When can I manage to retire? Longevity, you know, we ' re living longer. That that ' s you recognize, that ' s just what we ' re getting at. We ' re living much longer as well as longer. Um therefore', we required money to be able to last longer. It increases'all these crucial concerns like we ' ve just been chatting concerning and you know what sort of returns am I going to obtain on my on my investments.Um when can I retire? Just how much cash do I need? Do I have'sufficient? All these points are all relevant to you know how much time you want your money to last. As financial in this job as financial coordinator you understand we we ' re generally you recognize having discussions with people regarding you understand family members background simply like you were showing us. Tanya you you require to fund at the very least to 100 by the noise of it. Um no So'you recognize So, so you understand that ' s that ' s that ' s the sort of discussion we would be having around that. Well, that ' s your objective. So, let ' s see what allow ' s see what can be achieved there and also what you require'to do and also you know, just how much money do you require as well as all those type of things.Um that point there about the Covid I remember that that you know, however for everybody, I think the the subject of Covid started showing up in our workshops when Covid started and the marketplace had actually dropped.

Fairly substant and you understand, you recognize, every person was, you know, normally extremely worried about the influence of Covid on their retired life financial savings. Um and also certainly, what has, you understand, generally took place is that yeah, the the the market did fall.With Covid however it ' s in fact it ' s really recuperated therefore, you know, look, once again, I haven ' t got a clairvoyance.

That ' s I assume that ' s been an actually actually'positive thing that ' s that ' s the government ' s done on on in that sense.Um so, that ' s the downsizer. Um but yet yeah, I suggest, that'' s that ' s that that ' s. Really feel if you want to like'yeah so so so yeah simply putting my little'angle on points we ' ve got 2 different pensions.Um we ' ve got retired selection which Tanya was simply chatting about and we ' ve got retire smart. And they ' re like they won ' t state fail to remember yet it ' s it ' s but it attempts to kind of make it a simpler a a strategy for the for the member. Um as well as of course, what has, you understand, normally occurred is that yeah, the the the market did fall.With Covid however it ' s really it ' s really recouped and so, you know, look, as soon as again, I haven ' t got a crystal round.Yeah I I'' ll simply go through it swiftly due to the fact that there'' s a great deal of'numbers but I indicate you'' ve you ' ve you ' ve you ' ve just explained sort of some of the the broad the broad concepts regarding the you understand the the methods implies screening and this is simply type of placing some numbers on it.Um and also one of the points you can most likely select up from the slide is that Centrelink differentiate between a a home owner and also a non-homeowner. That ' s that ' s that ride and you I indicate I'think I I'wear ' t believe we ' ve stated it however for those that don ' t recognize Sentling when we ' re chatting concerning these asset worths they ' re not counting a home. Um it typically comes up anyway as part, you know, when we ' re discussing, you recognize, people ' s strategies and also things like that as well as it may, you understand, fairly typically, it ' s not always the like like you were chatting about.It ' s not necessarily the the customers themselves that we ' re we ' re speaking around.

I think that'' s what I'' m that ' s what I ' m trying to say. Yeah I I'' ll simply go with it promptly since there'' s a lot of'numbers but I suggest you'' ve you ' ve you ' ve you ' ve simply described type of some of the the broad the broad concepts regarding the you recognize the the methods means screening as well as this is simply type of placing some numbers on it.Um and one of the points you can most likely pick up from the slide is that Centrelink differentiate between a a homeowner and also a non-homeowner. That ' s that ' s that ride and also you I imply I'assume I I'put on ' t believe we ' ve stated it yet for those who don ' t know Sentling when we ' re chatting regarding these possession worths they ' re not counting a residence. Um it usually comes up anyway as component, you know, when we ' re discussing, you understand, individuals ' s plans and also things like that as well as it may, you understand, rather often, it ' s not always the like like you were talking about.It ' s not always the the customers themselves that we ' re we ' re speaking about. Yeah, I believe that it ' s it ' s difficult to put a rate on the value of peace of authorized isn ' t it?Those over the phone advisers can aid our participants with contribution suggestions with how to invest your funds as well as as well as a pair of other subjects as well as this over the phone advice comes of no extra charge. It'' s really spent for currently out of your participant fee. It'' s one of those solutions that is component of your member charge that a whole lot of our members put on'' t take off. We couldn ' t encourage him more to do that. And also there'' s no restriction as to the amount of consultations you have over the phone. Certainly you understand we need to be sensible and also make way for other individuals yet there'' s absolutely nothing stopping you from having a having it when a year.And then it comes with a comprehensive recommendations which is fills up area and he collaborates with a team of other detailed advisers. We we have the ability to seek their recommendations one-on-one. Um has been tough throughout Covid however that ' s all starting to come out as well as we also enable our participants to have conferences by Zoom. And if you comfortable with that and you ' re pleased to do that over the phone well you'absolutely can. Just a suggestion that thorough guidance does come at a cost. The initial meeting is free of charge. It is an assessment where you can deal with your monetary organizer to speak about the topics that you ' d like guidance on and afterwards at the end of the conference'your organizer can give you with a quote. Anything you ' d like to include with that one Phil? Uh no I think that ' s that ' s that that'' s that ' s around right. Um the initial first free as you claimed and after that we'' ll quote a rate ah and ah you understand appearance we ' re a member service.So, we ' re

we'' re right here to here to help people. Simply a fast question, The procedure, if you could just give me a quick rundown on the process of extensive advice since I think a great deal of our members who haven'' t experienced detailed guidance prior to may not understand that that takes a little of time. Can you give provide us an idea of just how that works? Oh, fine. So, well we we you recognize we primarily have a a preliminary meeting and in order to make that bed conference as effective for you as as possible. we ask if you can do a little bit of homework, I think. Um so, you understand, we we we need to essentially be able to understand your financial scenario. Um it makes it it'' s you have a a lot more productive and also better meeting I would certainly say with the monetary coordinator if you are prepared. Um it you understand if you if you telephone as much as the Financial Planner you you you may get your cost-free meeting.But if you ' re

not prepared that the financial what you ' re going to find is the financial strategy is going to wish to know a great deal of points. Because if you'' re going to ask them what you what you think they should do you require to know. Um therefore you recognize we'' ve obtained a a a pro we you understand we we email bent on the customers generally the details that we we want to have back before the meeting. and that offers us once more that provides the monetary plan a time to prepare for the conference. Um so you know we do that. we try to get try to do obtain that type of research in preparation before the conference. We have the meeting. Discover the objectives as well as what'' s going on in a person ' s lives. Right stuff in the conference. offer a quote. Um if we see if we both concur that we we can supply some benefit to you.Um as well as if you'' re happy with that said then we will certainly compose you a report called a statement advice. Um it usually takes approximately a month to to prepare. And after that we will certainly provide it to you. Um go with it with you. Make sure you'' re happy and understand it. As well as do the vast bulk of all the documents which is the truly horrible part while doing so that we yeah. Yeah. Okay. Okay. As well as I I intend the factor that I was attempting to make there was that if if it is something you'' re curious about most definitely begin speaking to your local supervisor or talking to somebody on the helpline because basic guidance first. Um before you relocate onto the detailed. However as soon as you'' re at the detailed just bear in mind it will take a bit of time.So if you

desire economic suggestions for your retired life it please wear'' t leave it to the last min. Please contact us you recognize at the very least a couple of months out. And then it just makes the entire process a lot less difficult and you can appreciate the process which you can be really delightful and also and actually enlightening for a great deal of people. Okay I actually intended to take this chance towards the end of the discussion. If you'' re still with us to chat concerning some brand-new new legislation and also exactly how it'' s influenced our fund. Currently we'' re off the subject of retired life preparations if you need to slope. Um I completely recognize. But this has actually been something that'' s been rather topical. So the federal government presented legislation called Your Future Your Super and also the entire suggestion behind your future your super was to evaluate the superannuation industry to assess incredibly funds as well as to mention as well as as well as to produce a little much more structure that would certainly aid the typical Australian extremely participant get a a better advantage out of Supra as well as there'' s a number of little bits and also items around this however I'' m going to chat specifically regarding the efficiency test.Now the efficiency examination was initially introduced in the Federal Budget as well as it was revealed in October 2020, which is simply over a year ago and also there were 9 months of extreme lobbying between government, market bodies and funds regarding the sensible application of the examination and also exactly how it would operate. And after that it was in fact enforced laws. So it was it was truly just a suggestion up until it was enacted. Actually well created idea. It came into impact June 2021 and also it began the following month in July 2021, which is just a few months earlier. The regulations which include the specifics of how the examination would certainly run were launched in very early August twenty twenty-1 And the results of the efficiency were released on the 30th of August 2021 and also our fund was informed on that date that our my incredibly default financial investment choice did not pass the test and so the my incredibly default investment alternative is the investment that you have actually placed into if you don'' t choose your very own investment.So it ' s an option that we ' ve developed for that member that would favor not to make their very own financial investment option or maybe didn ' t recognize that they could make their own investment selection. And also according to Afra that is regulatory authority. They claimed that we did not pass the test. How it functions is the test looks at the previous seven years efficiency of the My Super Alternative and also compares it to a fixed benchmark.So it ' s not contrasting our super fund to other very funds.

It ' s contrasting our extremely choice to what the government believed was an ideal benchmark or assumes is a suitable bench standard. So our existing default investment choice is called lifetime one and also it hasn ' t been around for 7 years therefore what the federal government have actually done is they'' ve included on the previous default investment choice which is called Traditional Equilibrium and they ' ve placed the two with each other to establish our efficiency outcomes. So the mix of the 2 items did not pass this mandated test. Um so this year the test just associates with the MySupra investment option. It doesn ' t influence members invested in our other thirteen options that we have readily available. So we we covered off on those 13 alternatives prior to when we were speaking about the assigned pension.So you do have selection if you wish to transfer your funds to among the other choices.

Um today so we don ' t really know all we understand is we didn ' t pass the examination. We wear'' t recognize by just how much so we we haven ' t been notified of our specific setting to the standard. This slide sums up the factors why we didn ' t fulfill the benchmark. It ' s interesting to keep in mind that the basic wisdom is that past performance is an indication of future efficiency. This test is inde looking back in the past.Well couple of the reasons that we ' ve been able to recognize that we believe it caused us to not pass the test is our

shares portion of our portfolio didn ' t do as well as a legal standard. And also in the monetary year as well as in 2thousand 18 we restructured our shares, profile to with the purpose for it to execute at a greater rate at a far better price. And one more one is is quite a technological component of the efficiency examination is our options investment profile was classified by the regulator as holding more growth possessions than our portfolio actually held.So our profile was more conventional and also because of this we didn ' t attain as greater return as what criteria we were examined against.

We ' ve formerly recognized efficiency six to 7 years earlier and also ever since performance has actually been fairly strong as you can see on the next number of slides. Specifically in the last 12 months and because we ' ve presented the lifetime one on alternative. There ' ve been several different explanations and also perspectives concerning efficiency examinations. It ' s simply the very first year that the efficiency examination has actually remained in place. A whole lot of extremely funds are now now that they ' re knowledgeable about how the performance examination functions'. Rather a few funds have actually transformed their financial investment purposes to align with the performance examination. There ' s fairly a great deal of detail. It is quite challenging and there is a committed area on our website.If you ' d like a bit extra information The Australian Federal government have actually additionally produced a comparison device where you can have a look to see how various my extremely default alternatives have violated the efficiency examination and also we we encourage people to go and also look at that. Tool which gets on the ATO web site. Our existing default option, Life time One is satisfying its designated objectives. It ' s only been around for three years. So, simply remember the performance test looks back at the last seven, not simply the last 3. Although we have actually been fulfilling our intended objective, it ' s crucial to not be confused with satisfying the efficiency examination. As Apra have an entirely various collection of benchmarks. The financial investment performance with Life time One has actually been quite as well as you can see on that particular slide it'states that for participants up to the age of 40 years old it ' s gained 20 9% after costs and also tax obligations for the last fiscal year. As well as this slide we can see the returns of our lifetime one product over the last economic year as well as an average over 3 economic years because it was introduced. If you ' re asking yourself why there ' s a different returns and also different age brackets on there. This is the style of the product. It ' s developed to end up being a lot more traditional as the participant ages as well as with an extra conventional financial investment, you'have a reduced threat as well as in turn, a lower return. Considering the previous year, you can see some great investment return numbers there and also if you desire to balance it out, we can provide you 3 years which is the average because Life time won our current default has actually been around.So the expectation for the enjoyable well we we truly do remain to have your finest rate of interest at the centre of everything we do. We offer award winning insurance policy within the fund as well as we provide that personal solution that we understand that our members really appreciate. We ' ve recently lowered our charges

which aids to improve your investment returns as well as we ' re always functioning hard to reveal new methods to support our members.One of the crucial things on our program is to discover the biggest extremely fund to combine with. The federal government are motivating us to do this and they assume it will certainly remain in members ideal passion to become a larger fund. And also the reason behind this is the advantages of merging with the huge fund is to offer economic situations of scale. So economic climates of scale is really simply chatting concerning how the more you have to spend the less costly the fees can be. This might additionally assist to minimize prices that we can pass onto members. If you ' d like to go over the performance testing a lot more detail, please enter call with your regional supervisor or with our head workplace or our financial recommendations team can also aid with picking an alternative investment choice within Australian Catholic Super. If you ' re in Life time One as well as you ' re curious about making a move.We ' ve additionally got the participant portal. So this is just completing a number of various other solutions that we provide. The member portal it ' s similar to electronic banking. It ' s truly simple to register if you place ' t currently. You can track your account. Here ' s a summary of what ' s in the website. You can negotiate on the account. You can'alter your investment choices. You can discover the VPay details.The production of contribution. There ' s a terrific forecast device if you want to determine what your very balance could resemble in the future. And we ' ve just recently likewise reestablished our app if you like to do things on your mobile phone. So really please wear ' t think twice to obtain in touch. We truly like helping our participants. We desire to speak with you. You can call us. You can email us. And also now we ' re arising from lockdown.You can see us in the regional office. We ' ve got two offices in Sydney. One in Brisbane, One in Canberra. One in Townsville. One in Port Macquarie. And one in Perth. And after this session you ' ll get a survey where you can elect to have one of your local supervisors'contact you over the next few days if you like. Are you in the interest of time? I believe it ' s possibly best that we wrap up now with made note of of your concerns as well as solutions.

I can see that there ' s a couple of comments in the chat box. We will certainly obtain back to you regarding those. Really just intend to give thanks to everyone. Phil in order to wrap up please tell us when do you think people should begin preparing for retirement? Now, yeah, I I assume if you ' re pondering it, I assume it ' s begin having a conversation a minimum of you understand, with your local manager or or or'the financial preparation team.At the very least have a conversation as well as and begin to see whether currently is the moment because you put on ' t intend to leave it too late. It ' s much better to have the conversation previously. than than to leave points to you. You may be limiting your choices if you leave it to like. Fantastic. Thank you a lot. Thank you everybody for sharing us your time tonight as well as ideally, we can obtain together in the future and see each other in person. Thanks. Excellent evening. Thank you. Excellent evening.

Uh no I assume that ' s that ' s that that'' s that ' s about. The guidelines which include the specifics of how the test would certainly run were launched in early August twenty twenty-1 As well as the outcomes of the performance were released on the 30th of August 2021 and our fund was informed on that date that our my very default financial investment option did not pass the test as well as so the my super default investment option is the financial investment that you have actually placed into if you put on'' t select your very own investment.So it ' s a choice that we ' ve built for that member who would certainly choose not to make their very own investment choice or perhaps didn ' t understand that they might make their very own investment choice. We don'' t know by how much so we we sanctuary ' t been alerted of our exact setting to the standard. If you ' re asking yourself why there ' s a various returns as well as different age braces on there. If you ' re in Life time One and also you ' re interested in making a move.We ' ve also got the member website.

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