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- 32 years old
- Earns $82,700 p.a.
- Accumulation 2 member
- Makes 7% standard member contributions from after-tax salary
- Super invested in Balanced option
- Has just bought her first home
- Receives a 3% pay increase on 1 January 2018
Gita has never given much thought to her super: she’s gone with the default arrangements.
Recently, however, she attended a ‘Women and Super’ seminar at her campus and it has motivated her to review her super arrangements. In particular, Gita wants to ensure she has the right contributions strategy and investment option.
Gita visits her UniSuper On-campus Consultant, who organises a telephone appointment for Gita with a UniSuper financial adviser. During the initial consultation with the adviser they discuss Gita’s financial situation, including the recent purchase of her first home with her partner. The discussion also covers Gita’s income requirements, long-term goals and investment preferences.
A week or so after the call, the adviser emails Gita a Statement of Advice, which they then review during a second call. This Statement outlines the adviser’s recommendations regarding Gita’s contributions to her super and her investment choice. Gita and the adviser confirm that she is an Aggressive Investor, with plenty of time to ride out the volatility that comes with investing in growth assets. They also discuss the benefits, for Gita, of making standard contributions from before-tax salary via ‘salary sacrifice’. This will increase Gita’s net income, without reducing her super contributions. Gita is thrilled that she’ll be able to use the additional income to increase her mortgage repayments.
The adviser explains that the investment advice he has provided should be valid for around five years, unless something significant changes in Gita’s life. Still, he recommends that she stay on top of her super by reading Super Informed and studying her benefit statements.
Could a UniSuper financial adviser help you? Get in touch to find out.
|How Gita came out $1,0072 ahead in the first year
+ $1,517 in additional take-home pay
- The adviser recommended Gita change her 7% after-tax contributions to 8.25% before-tax contributions.
|- $510 fee for advice on two issues (contributions and investment strategy). A face to face meeting may be available at an additional cost of $120.
- The fee for advice was deducted from Gita’s super because it was superannuation-related.
1. Gita is a hypothetical member, but the relevant facts are based on a real member. 2. All figures provided, including this figure, are based on the specific factual circumstances detailed in this scenario. The amounts are not guaranteed and will vary depending on your specific circumstances. Figures may be rounded. These calculations are based on legislation applicable in the 2017-18 tax year.
The information contained in this case study is not legal, taxation or accounting advice. It is intended to provide general information only. It has been prepared without taking into account your objectives, financial situation or personal needs. Prior to making any investment decisions, you should speak with a financial adviser to consider whether this information is appropriate for your needs, objectives and circumstances. You should also obtain a copy of the relevant product disclosure statement (PDS) prior to making a decision regarding any investment in any financial product. Whilst care has been taken in the preparation of this information, the accuracy or completeness of the information is not guaranteed. This case study was prepared and issued by UniSuper Management Pty Ltd ABN 91 006 961 799, AFSL No: 235907, which is also the administrator of, and wholly owned by, the UniSuper Superannuation fund (ABN 91 385 943 850). UniSuper Limited (ABN 54 006 027 121) is the trustee of the fund. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members.