ANZ Smart Choice Super Investor Update : Member Update Spring 2014
12 Pete’s super story doesn’t end there. While getting ready for work one morning, Pete heard David Koch talking about super on Channel 7’s Sunrise program. Normally Pete wouldn’t pay attention to such a topic. However, his recent success with super had p his interest. As he recalls, “Kochie was saying it was never too late for people to start contributing to super, even $10 a week can make a difference to a 50 year old. As a person in my early thirties, I thought it would make a world of difference to start doing it now.” So he did. Pete put his fee savings to good use, starting a $20 a week contribution into his ANZ Smart Choice Super account. By the age of 65, his decision to consolidate 17 super accounts could save him $65,000 in fees2 . Furthermore, his extra contribution of $20 a week should see him a further $51,000 better off. That’s $116,000 more for his retirement (in today’s dollars)2 . His future self will no doubt thank him for that decision. Before consolidating your super, you need to consider any adverse consequences, including exit fees, loss of benefits (e.g. insurance cover) or increase in investment risks. A world of difference 1. Pete is a 33 year old ANZ Smart Choice Super customer and is happy to share his story. His real name has been changed to protect his identity. 2. Assumptions were calculated using the MoneySmart Superannuation calculator. To calculate the projected cost savings and projected retirement incomes, we have assumed a current age of 33, intended retirement age of 65, annual salary $75,000 (before tax), a current super balance of $31,500 and a $20 per week after tax contribution (applicable to ANZ Smart Choice Super only). Fees on the old funds were investment and other fees of 1.065% plus $684 in annual member fees, compared to ANZ Smart Choice Super fees of 0.5% and $50 per annum. All other assumptions remain unchanged. For the full list of the MoneySmart calculator assumptions, please visit www.moneysmart.gov.au. Old Funds ANZ Smart Choice Super $373,573 $490,297 Difference $116,724 Estimated super balance (at age 65)2 Online Tip: Learn more about ANZ Smart Choice Super’s innovative paperless rollover service.
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Member Update Winter 2014