A message from future you

Super News

Have you ever wondered whether the contributions you’re making now will be enough to build the future you want? Here are some simple things you can do that can make a real difference.

Just imagine! It’s the weekend and you’re enjoying a quiet afternoon when you hear the familiar ‘ping’ of an email on your phone. Nothing unusual in that. But as you open it and read on, a look of surprise comes over your face. “Everything OK?” asks your partner. You reply, not really knowing what to think, “It’s an email from me…when I’m 65!”
You’ve probably read those stories where people offer advice to their younger selves. But what would your ‘Future-you’ tell you about your super? As a member of an ESSSuper Defined Benefit Fund, you’re already in a better position than most people to achieve a good result. But to make the best of that advantage, have you ever considered making a change to your contribution rate? It’s a simple step you can take today way that could help make a real difference later on.

Two new catch-up rates of 9% and 10% for ESSS DB members

In October last year The Superannuation Legislation Amendment Act 2019 was introduced. It ushered in some important changes to contribution rates that could help you better achieve the retirement outcome you want. Under these new provisions ESSS DB members now have the option to contribute at a special catch-up rate of 9% or 10% of your salary (if your average contribution rate has been less than 7%).

How is your defined benefit calculated?

In your ESSS DB Fund, your final benefit is based on:
  • your contribution rate, that is the percentage of your salary you contribute
  • how long you are a member of the fund; and
  • your final average salary when you retire.
The aim is to reach your 'Maximum Benefit Multiple'. The quickest way to do this, is to contribute at the highest contribution rate over your years of membership, so when you retire, it will pay off as the highest multiple of your final average salary.

Reached your Maximum Benefit Multiple?

While you can’t make extra contributions to your defined benefit fund, you could do your ‘Future-you’ a favour by topping-up with an ESSSuper Accumulation Plan. One of the main benefits of doing this through salary sacrifice is the contribution is deducted at a lower tax rate, so you’ll boost your super while reducing your income tax.
Plus, an ESSSuper Accumulation Plan lets you can change your investment mix online, to match your changing circumstance. You can take advantage of regular ‘after-tax’ contributions, lump sum contributions, personal deductible contributions, or transfers or rollovers from other super funds.1 And you even have the peace of mind of protecting yourself and your family in the event of serious illness and death with a choice of insurance options for death, total and permanent disablement and income protection.
Everybody’s situation is different, so check our Salary Sacrifice Calculator to see if it’s right for you.2

It's never too late

It’s true that these new options give you a new freedom to make the extra contributions that will give your super a boost, but they’ll never replace making maximum contributions over your entire career lifetime. While it’s never too late to start contributing at the top rate, it pays to get in early.

Check your contribution rate and calculate what’s right for you.

Adjusting your contribution rate is one of the most effective ways to reach your maximum retirement benefit and Death and Total Disablement cover. And it’s easy to do today.
  • Log in to Members Online via the ESSSuper website to check and change your contribution rate
  • Call the Member Service Centre on 1300 650 161
If the time’s not right for you to change to your contribution rate right now, please consider reviewing it in future to maximise your long-term benefits.

Helping Future-you plan your journey to retirement with confidence.

AssistMe is part of a suite of interactive digital tools that ESSSuper now offers to help you navigate your journey towards what you may consider a comfortable retirement. It can help you forecast the kind lifestyle your super will support in retirement. It’s a bit like having a personal guide by your side. It’s designed to help you learn, explore and understand the options available to you, so you can make informed decisions about how to get the most from your super.

If you don’t know where you’re going, how will you know when you get there?

No matter what stage you are at in your working life - just starting out on your career, approaching retirement or anywhere in between - knowing where you stand now and where you want to get to, can really help with your planning. And planning is critical if you want to achieve the best outcome for yourself.
In a few simple steps, AssistMe can help you create a retirement income forecast based on your circumstances that indicates:
  • your possible final super balance
  • what your income in retirement may be
  • what lifestyle that will be able to support
  • and how long your super may last.

Try AssistMe for yourself

To access AssistMe, simply visit the ESSSuper website, login to Members Online and follow the prompts. If you haven’t yet registered for Members Online, don’t worry, you can set it up in a few minutes. Just have your ESSSuper member number on hand and follow the prompts from our home page.

1. There are maximum limits on before and after tax contributions which are set by the Government, and if these limits are exceeded you may be liable for additional tax. It is important that you monitor your contribution levels as they may change from year to year. Please read the Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information.
2. Insurance cover is subject to eligibility criteria and other terms and conditions in the Policy. Please read the Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information.
3. Salary sacrifice is only available to approved members in accordance with the conditions on your Enterprise Bargaining Agreement. If you are in doubt, please consult your employer.

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 at www.esssuper.com.au or by calling 1300 650 161.

Have you registered for Members Online?

Members Online allows you to gain full access to your super account securely, anytime, anywhere.

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2020 Seminar Program

ESSSuper holds a range of free seminars, run by people who understand the type of work you do and who are the experts in your fund.

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Multiple super funds?

ESSSuper members have the option to consolidate other super via Members Online. Consolidate now in just a few simple steps.

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IMPORTANT

Thinking of retiring?

Book an appointment with one of our Member Education Consultants to find out if you’re doing everything you can with your super to ensure you'll have the lifestyle you want in retirement.

Book an appointment >

Do something super for your spouse.

As an ESSSuper member, your spouse or de facto partner is eligible to open an ESSSuper Accumulation Plan account.

Learn more >


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