My Super What it means to you Warringal Financial Services Is the - PowerPoint PPT Presentation

My Super What it means to you Warringal Financial Services Is the trading name of NICA Group Pty Ltd Authorised Representative of GWM Adviser Services Limited ABN 96 002 071 749 Australian Financial Services Licensee registered office Level 1, 105 - 153 Miller Street, North Sydney NSW 2060

125 years’ experience TRUST We’re one of Australia’s most trusted and awarded wealth managers MLC is the wealth management division of National SECURITY Australia Bank making us a trusted and secure option for employers Award-winning administration, high level of employer support, AWARD-WINNING leading edge investment management, comprehensive insurance SERVICE options and benefits and member advice Combined with our depth in corporate superannuation, CONFIDENCE MasterKey Business Super gives you and your clients the confidence MLC is the right choice 2

MySuper WHAT DOES HOW DOES IT WHAT IS IT? WORK? IT DO? MySuper It provides Through changes how members with standardised default super simple and cost product features works. effective default that enable superannuation. members and employers to compare products more easily. 3

Core criteria in focus 1 Single diversified or lifecycle investment strategy 2 All members have access to the same options and facilities 3 Only certain permitted fees and they must be consistently applied* 4 All superannuation funds must provide Death and TPD insurance to members on an opt-out basis 5 The government has deemed MySuper to pay no commissions * Employer discounts can still apply to the administration fees

Your MySuper offer includes: 4 KEY PILLARS A simple A single diversified A MySuper A member advice and easy MySuper MySuper Lifestage insurance service to ensure design investment option design to ensure members are which maximises members are making informed retirement protected should choices supported outcomes the worst happen by advice 1 2 3 4 6

1 A simple and easy MySuper design An offer designed to make it easy for members to engage with their super and for employers to satisfy their obligations. By not creating a new Existing members product – instead retain the same embedding MINIMISE HOW? account and the way a new investment CHANGE they deal with us won’t option in MasterKey change Business Super MySuper For existing members* Minimal impact - no and new members. need for members to NO Existing balances and DEFAULT FUSS OPTION change their account arrangements can be number or move from grandfathered until one fund to another 2017 * Existing members who have not elected an alternate investment option (other than the current default) and new members will have MySuper established as their new default. 7

Still SuperEzy “ The way members and employers deal with their Business Super accounts will not change. Paying contributions, adding new members and updating member details will continue through our clearing house, SuperEzy. ” 8

A single 2 diversified MySuper investment option THE SOLUTION Investment professionals recognise that single diversified A single diversified products can produce better 70/30 portfolio for retirement outcomes*. greater comparability and also out performs a simple lifecycle THE STATISTICS offering in 37 out of 40 scenarios. Current lifecycle products are By offering a single diversified investment simplistic, one-size fits all strategy, the aim is to help offerings that can promote maximise the retirement outcomes for apathy. members and drive engagement through informed choice MLC doesn’t rely on “age banding” which can crystalise losses or gains. Instead it supports the value of advice and empowers clients to become more engaged with their super. • MLC Implemented Consulting / JANA investment management: Lifecycle Investing: Is it the Answer? February 2013. Available at: http://www.mlc.com.au/resources/MLC/Implemented%20Consulting/Static%20Files/pdf/myconsultant_feb2013.pdf

More on MySuper investment option MLC’s investment approach keeps true to their active management beliefs. Active management Value For Money You have an expert asset manager Whilst ‘active management’ is working on each aspect of your provided cost levels are kept down by investment – at all times. using passive and active investment strategies. Better peace of mind for Only indexing where it you makes sense Exposure To Growth As we’re living longer, A 70/30 fund to provide the right you will need exposure to exposure to growth with the right growth assets for longer. level of downside protection. 12

The right investment option depends on a number of factors - not just your age Did you know? At age 60 You have probably got around 25 years to live Our approach is to encourage advice, and depending on your circumstances a better strategy for this time period is likely to be 70:30 Not 30:70 as would be the case with a standard lifecycle option 13

Introducing JANA MLC MySuper investment solution will be managed by JANA. They are one of Australia's leading and most successful investment consultants – trusted to invest and advise on over $220bn in global investments The success and growth of JANA has been driven by the quality of their research, innovation and thought leadership Investment Approach 14

Consistent Outperformance JANA has a proven track record. Their strategic advice has helped clients to outperform through all market cycles. JANA is currently the investment adviser to: 2 3 5 4 of the of the of the of the top 10 top 10 top 10 top 10 balanced balanced balanced balanced funds funds funds funds over 1 year Over 3 years Over 5 years Over 7 years 15 Source: Chant West Multi-Manager Quarterly (31 Dec 2012)

3 A MySuper Lifestage insurance design It’s widely accepted that there is an underinsurance problem in Australia. THE STATISTICS THE SOLUTION The median level of life An insurance model that insurance only meets provides the best level of cover - at the times you need it most. 66 % of basic needs. Introducing the Unlike investments, there’s a widely MLC Lifestage accepted correlation between insurance insurance needs and age. 16 Source: Rice Warner Underinsurance in Australia Report, 2012.

More on MLC Lifestage Insurance Designed to maximises retirement outcomes and insurance protection – at any age. $450,000 $400,000 $350,000 Death $300,000 TPD $250,000 $200,000 It’s intelligent cover to reflect needs but is it right for you? Higher levels of TPD when And gradually declines as you’re young and lower Death dependents reach maturity, cover. mortgages are repaid and as retirement income becomes It peaks at 35 where more of a focus. members have high debt and dependents at home. MLC will also retain their full range and wide variety of insurance choice for both members and employers. 17

Did you know? Being underinsured is a serious problem We see too many cases where $ insurance payouts are simply not enough to support members. A 46 y.o. single father This will not even paid a $46K total and cover the cost of permanent disablement household and benefit from his $2 p.w. other adjustment insurance. costs, let alone provide an income 18

More on MLC Lifestage Insurance For Employers For Members MLC Lifestage removes Basic cover members the risk of not providing will be automatically adequate cover and will upgraded with the be offered as the new ability to opt-out. insurance design for all Standard rates for new new members. members In the spirit of choice and will have premiums flexibility existing designs based on new will be maintained if MySuper compliant requested and gender based rates *These will be age, occupation and gender based, and cannot include commissions. All existing insurance options will remain available or be improved; giving members the flexibility to meet their specific needs. Existing tailored rates will continue less commissions

Let’s make the transition simple To protect existing benefits, all current insurance arrangements for existing members will remain in place with: Existing benefit Terms and designs conditions Premium Servicing rate basis arrangements* *Including the service of the Plan adviser 20

What’s recognised as the largest 4 A member advice industry ‘satisfaction gap’? service Access to quality advice EXPERT OUR SOLUTION THE STATISTICS All MySuper members get Advice is the best way to access to the same features, improve member benefits and services engagement with their We’ve embedded advice into our superannuation and MySuper offer and we encourage ultimately improve members to contact us to seek retirement outcomes*. further personal advice on their needs Our member advice service incorporates online and phone-based tools We will provide clients with the right level of advice, at the right time, in the most cost effective way for members 21 • *Investment Trends, June 2012