MySuper is coming!
The government’s MySuper reforms take effect from 1 January 2014.
If you haven’t made an active investment choice about where to invest your retirement savings, your employer will be required to pay your super contributions into a MySuper offering from 1 January 2014.
What’s MySuper about?
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Currently, when you join a super fund, you can choose an investment option—how and where you’d like your money invested to suit your financial goals.
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If you don’t make an investment choice, your super contributions automatically go into what’s called a ‘default’ investment option—one that is intended to suit a broad range of financial needs.
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With the introduction of MySuper come MySuper default options– simple and cost‑effective superannuation options that are replacing existing default options.
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On 1 January 2014, employers must start contributing to a MySuper offering for any employees who haven’t made an active investment choice.
Do the MySuper changes impact everyone?
No. If you’ve already made an active investment choice for your super fund, the MySuper changes will have no impact on you.
Now’s the perfect time to start taking control of your retirement savings and make a choice about where to invest your money. Smart choices now can maximise income later.
After all, it’s your money. And it’s your retirement you’re saving for.
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Making an active investment choice is easier than you think. If you want to take control of your retirement savings and bring all of your super together, you can move your super to any AMP investment option by simply completing a rollover request. We will then send your request to your previous fund which will take three working days once they have all of the necessary information. AMP will then process your request within an additional three working days. |
Super changes that can help grow your retirement nest egg…
It’s been a big year for super, with some important changes to the way you can save for your retirement.
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If you’ve turned 60 and earn under $300,000, you can put more money into your super at the concessional 15 per cent tax rate. The before tax—or concessional—contributions cap is temporarily going up to $35,000 for 2013-14.
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If you’ve turned 70 and you’re still working, you should have started to receive compulsory employer super contributions on 1 July 2013.
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And if you’re retired, as of November 2013 the government has reduced the rate at which your investments are assumed to be earning income, potentially improving your eligibility for the age pension. The deeming rate has been reduced to 2 per cent for the first $46,600 for single pensioners and $77,400 for couples, and the deeming rate above these thresholds has been reduced to 3.5 per cent.
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What’s deeming? As soon as you hit age pension age, super starts counting as an asset. It’s treated as a financial investment and subject to deeming.
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The deeming rules assume your financial assets are earning a certain amount of income, regardless of the income they actually earn.
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Please call AMP on 131 267 or your financial planner to talk about how you can make the most of these super changes to boost your retirement savings.
What you need to know
Any advice in this document is general in nature and is provided by AMP Life Limited ABN 84 079 300 379 (AMP Life). The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters and consider the Product Disclosure Statement before making a decision about the product. AMP Life is part of the AMP group and can be contacted on 131 267. If you decide to purchase or vary a financial product, AMP Life and/or other companies within the AMP group will receive fees and other benefits, which will be a dollar amount or a percentage of either the premium you pay or the value of your investments. You can ask us for more details.
