A super companion for life

Super News

There are few things in life that stick by us like super. It’s there to support us from our first job, through to the day we retire and beyond. But as you grow and change over the journey, so should your super flex and respond to your varying needs.

There are certain milestones in life that make us stop and take stock. Significant birthdays, changing jobs, maybe getting married, starting a family, separation and divorce are all watershed moments. And each impacts us in different ways, emotionally, socially and financially.
At these times it’s important to check how the changes may affect your super. You may be surprised just how significant the impact can be. But by making a few adjustments at critical moments, you can make sure your super stays on track to deliver the retirement you want.

Check your position once a year

No matter what stage you’re at, regularly assess your position on super each year, say at the start of a new year. Do you know how much super you have got? How much did it grow over the last 12 months? Have your life and retirement goals changed? And are you still on track to achieve them?

Thankfully ESSSuper makes it easy to keep track of your super. By visiting Members Online you can get a snapshot of your super balance, and access our online calculators to predict how much you might need and how long your super may last.

What if you change jobs?

As a member of an ESSSuper Defined Benefit fund (ESSSDB), changing jobs has various implications for your super. If you change roles, but remain with your current employer, your ESSSDB fund will continue to grow based on your contribution rate.

If you change employers and move to a different industry, you can no longer contribute to the ESSSDB fund. On leaving, you’ll be entitled to a benefit subject to the fund rules. However, members are able to leave their super with ESSSuper by opening an ESSSuper Accumulation Plan account, which can accept super guarantee contributions from your new employer.

Tying the knot

If you marry or enter a de facto relationship, it’s good to share information about each other’s super arrangements, such as whether you both hold life or income protection insurance through your super.1 You may also want to review and update your ‘beneficiaries’, to reflect the priorities of your new relationship. Member’s spouses also have access to the ESSSuper Accumulation Plan. Depending on your partner’s income, you may be able to make spouse contributions to their super account or use contribution splitting to split some pre-tax contributions with your partner.

Children change everything

If you take parental leave under a ESSSDB fund, it’s regarded as ‘normal service’, and your super benefit will continue to accrue at your chosen contribution rate. This ensures you’re not disadvantaged by caring for a young family. As the kids grow, regularly review your insurance, so it continues to reflect your and their needs. If you take a longer career break, or decide to work part-time, your super will slow considerably.

Check if you are able to take advantage of the government co-contribution scheme, which can help to keep your super growing during these times.

Relationship breakdowns

In emotionally turbulent times, it’s important to do a financial stock take of your situation. Check your will, your life insurance and super. The law says that super benefits can be divided between parties when relationships breakdown. So it’s a good idea to talk with an ESSSuper Member Education Consultant about your situation, as well as your legal adviser.1 If you want to change who receives your super benefit if something were to happen to you, you can update the beneficiaries you have previously nominated.

We’re here to help

Staying informed about your super and making sure it continues to match your changing circumstances can play a major role in securing your financial future. If you have any questions, talk with one of our Member Education Consultants who are the experts in your fund. If you want advice specific to your personal financial situation, they can also refer you to one of our Financial Advisers2.

1. Marriage and divorce, Super Guru ASFA, FYA.org.
2. ESSSuper Financial Advisers are authorised representatives of Adviser Network Pty Ltd (Adviser Network). Adviser Network holds a current Australian Financial Services Licence No. 232729 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Adviser Network Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Adviser Network a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Adviser Network, or are responsible for the advice and actions of Adviser Network

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper’s Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available on our website or by calling 1300 650 161. 


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