THE NEW YEAR EDITION FEBRUARY 2019 - Intrust Super
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THE NEW YEAR EDITION FEBRUARY 2019
LETTER FROM
THE EDITOR
Welcome to 2019 and our new-look 360° Magazine!
I hope you like the new streamlined format. Now it should be
Disclaimer
This information has been prepared without
even easier for you to find the news that’s important to you. taking into account your particular financial
needs, circumstances and objectives and
The Intrust360° team has already been working hard this year, is therefore not suitable to be acted on as
investment advice. You should assess your
helping new and existing clients with their new year strategies. own financial situation and may wish to
Have you discussed your 2019 plans with a financial adviser yet? consult an adviser before you make any
changes to your financial affairs.
To help you prepare for 2019, we’ve summarised the major Issued by IS Industry Fund Pty Ltd | MySuper
financial changes that will be taking effect this year. Have a read Unique Identifier: 65704511371601 | ABN:
of page 2 to check if there’s anything you need to know. You can 45 010 814 623 | AFSL No: 238051 | RSE
Licence No: L0001298 | Intrust Super ABN 65
also read about some major credit card reforms that came into
704 511 371 | USI/SPIN: HPP0100AU | RSE
play early this year on page 6. Registration No: R1004397.
IS Financial Planning Pty Ltd ABN 64 143 707
I’m particularly excited about the Fund’s launch of two innovative 439 trading as Intrust360° is a wholly owned
new services, designed to help our members improve their subsidiary of IS Industry Fund. Intrust360°
retirement balances. Read all about SuperCents on page 11 is a corporate authorised representative of
and Super Blueprint on page 4. Adviser Network Pty Ltd ABN: 25 056 310
699 | AFSL: 232729 | Corporate Authorised
Representative Number: 379207.
Finally, on behalf of the team at Intrust360°, I’d like to wish
you all a happy and healthy start to 2019. I hope you enjoy
this New Year Edition! As always, if you would like any further
information on the topics covered in this issue, give Intrust360°
a call on 1300 001 360.
Kind regards,
Brendan O’Farrell
2 4
Contents
2 Changes that may
affect you this year
We’ve summarized the main 2019 changes
you should know.
4 The perfect tool for
your 2019 plans
6
We’ve upgraded our online financial
advice service.
6 Managing our growing
household debt
New rules have been put in place to help
reduce Australia’s credit card debt.
8 Brendan’s Banter
The economic musings of a super fund CEO
11 Introducing SuperCents
Have you tried our new app?
12 Starting the new year
with your financial
foot forward
Struggling with new year financial plans?
There is a solution!
12
360° | intrust360.com.au [ 1 ]
Changes that may affect you this year [ 2 ] 360° | THE NEW YEAR EDITION
There are a few changes to financial rules coming in 2019. Some have
been in place since 1 January, some won’t be in effect until later in
the year and some are still subject to the passage of legislation. We’ve
summarised the main changes that you might need to be aware of below.
The following changes will apply in 2019:
• Credit card reform
On 1 January, several credit card reforms were put in place. These will
require providers to change the way they assess customers’ ability to
repay debt and make it easier for customers to cancel or reduce their
limits. You can read more about these changes on page 6.
• Concessional catch-up contributions
From 1 July 2019, subject to some conditions, those who have not
used their entire $25,000 before-tax super contribution limit in 2018-
19 [and beyond] will be able to access the unused portion for up to
five years. This will only apply to those who have less than $500,000
in super.
• Age Pension age
On 1 July 2019, the Age Pension age threshold will be increasing to 66.
This means that those born between 1 January 1954 and 30 June 1955
will only be able to access the Age Pension once they reach age 66.
The following changes are due to come into effect on 1 July 2019, but
are currently subject to the passage of legislation and may be changed:
• Centrelink work bonus
The work bonus limit may be increased from $250 to $300 per fortnight.
• Age Pension Means Test
The means test rules may be amended to encourage the
development and take-up of lifetime retirement income products.
• Exemption from Superannuation Guarantee
Higher income earners with multiple employers may be able to
nominate certain wages to be exempt from the superannuation
guarantee to avoid breaching the concessional contributions cap.
• Inactive super accounts
Any super account with a balance less than $6,000 that has not
received a contribution for over 13 months may be transferred
to the ATO.
• Insurance in super
Those who have an account balance of less than $6,000 or haven’t
received a contribution for more than 13 months may lose any
default insurance currently attached to their super fund. In addition,
anyone under 25 who joins a super fund after this date may not
receive default insurance, though it can still be applied for.
If you’d like any further information or assistance in preparing for these
changes, the financial advisers at Intrust360° should be your first port
of call. Give them a call on 1300 001 360.
360° | intrust360.com.au [ 3 ]
The perfect tool for your 2019 plans [ 4 ] 360° | THE NEW YEAR EDITION
It’s the beginning of 2019, and now that the Christmas and holiday spending have finally come to an end,
it’s a great time to focus on getting on top of our finances. And Intrust Super has the perfect tool to assist!
A new tool to help Super Blueprint
your new year in action
planning Intrust360° client John, age 52, wanted to kick
off his 2019 planning by using Super Blueprint.
We recently upgraded our free online advice
John earns $80,000 annually and has made no
service to a faster, more simplified system called
extra contributions to his superannuation besides
Super Blueprint. After going through a few simple
those from his employer. His balance is currently
steps online, Super Blueprint can provide you with
$315,000. John wanted to get a clear picture of
a personalised financial plan. You can use the
his retirement goals and work out whether he
service to receive retirement projections, guidance
needed to change his current financial strategy.
on insurance cover, investment recommendations
So he decided to use Super Blueprint to produce
and contribution strategies in no time at all.
a personalised financial plan.
improved online He logged into his MemberAccess account and
began to go through the Super Blueprint process.
financial advice Using the information found on his account,
along with a little extra information provided
Super Blueprint is capable of accessing your by John, Super Blueprint produced a simple
Intrust Super account data to help project your online Statement of Advice [SoA]. The SoA set
potential future financial situation. Based on out John’s projected super balance and some
these projections, your current situation and recommendations for his future strategy. The
your goals, Super Blueprint will provide financial results predicted that John would have around
recommendations. These final recommendations $28,000 less than his retirement goal of $645,000
are now able to be delivered three times faster if he kept to his current plan and retired at 62. To
than the previous service – all while requiring less help him reach his goal, the SoA recommended
input from you! Thanks to Super Blueprint, your John start contributing an extra $42 a week to his
new year financial planning could be completed super over the next 10 years*.
from the comfort of your own home.
Thanks to the advice he received, John was able
to identify his shortfall and implement a strategy
to reach his goals. He is now contributing extra
money to his super account and is well on his way
to reaching his desired super balance before he
plans to retire.
Help is available!
If you need any assistance with Super Blueprint, Intrust360° are ready to help. If you’re not
sure about any of the recommendations, or need assistance in setting up a more complex
strategy, the financial advisers at Intrust360° can take a look at your Super Blueprint results
and provide more comprehensive advice. Give them a call on 1300 001 360 to make an
appointment. And remember, simple super advice is available straight over the phone!
*Example used is hypothetical. Source: ASIC’s compound interest calculator. Results are only estimates, the actual amount may be higher
or lower. Assumptions: No change to yearly salary, employer contributions of 9.5 per cent, 5 per cent interest rate.
360° | intrust360.com.au [ 5 ]
Managing our
growing
household debt
[ 6 ] 360° | THE NEW YEAR EDITION
For the last 28 months, Australia’s cash rate has
been on hold at 1.5 per cent [as of January 2019].
Managing your
And yet, most premium or reward credit cards
credit card
offer a purchase rate [the interest charged to Intrust360° financial adviser Craig Chalmers
credit card purchases] of 19-20 per cent. Most discusses some things to be aware of when using
low-rate credit cards offer a rate of 12 per cent. a credit card.
While this is much lower than other credit cards,
it is still a massive 10.5 percentage points higher ASIC’s credit card reforms have highlighted the
than the cash rate put in place by the Reserve ongoing problems many Australians have with
Bank of Australia [RBA]. credit card debt. But the truth is there’s nothing
wrong with using a credit card, as long as you
Such high purchase rates don’t do much to help manage it well. The most important thing is to
us reduce our level of debt. And currently more always compare the fees and purchase rates to
than one in six of us are struggling with credit make sure you’re getting the best deal, and to
card debt in Australia1. Our household debt levels, monitor your spending.
combined with continually low wage growth,
is one of the reasons the RBA continues to keep For instance, many people choose to use certain
a hold on the cash rate. credit cards to receive rewards or frequent flyer
points. If you do so, it’s important to compare
You might even be feeling the repayment the fees charged for the card with the points you
pressure right now, thanks to the expenses receive. You want to make sure you’re not paying
of the Christmas season. more than you’re getting back in rewards.
The good news is that this year, some new credit Whatever you decide to use the credit card for,
card reforms have taken effect. It’s hoped these new it’s a good idea to keep a record of exactly what
rules might assist anyone struggling with credit card you’re spending. As long as you know how much
debt and prevent more from getting in trouble. your bill will be at the end of the payment cycle,
you should be able to work out if you’ll be able to
New rules to help pay the debt in full. If you find yourself getting to
the end of your spending limit, hide your credit
reduce our debt card somewhere. That way you’ll have to think
about it each time you go to use it.
On 1 January 2019, the Australian Securities and
Investment Commission [ASIC] put the following It’s when you find yourself paying only the
credit card reforms in place: minimum repayment requirements that the debt
can become a problem. While you’re only paying
• Credit card providers must assess any
off the minimum from bill to bill, the rest of your
applications for new credit cards or credit limit
debt will continue to grow. This can easily get out
increases based on the applicant’s ability to pay
of control. Just remember, you can always ask for
off the total debt within three years.
help if you’re struggling!
• An option to cancel or reduce credit limits must
be made available to customers online. – Craig Chalmers, Intrust360° financial adviser
• Providers and banks can no longer retroactively
charge interest on credit card balances. Assistance is
These reforms may not fix every problem with
credit cards, but they are a step in the right
available!
direction. By placing more limits and regulation Credit card debt is something many of us struggle
around credit card providers, ASIC hope to prevent with at one time or another – especially at this
consumers from building up a debt that may not post-Christmas time of year. If you do feel like you
be able to be repaid. After all, the most important need to sort out a growing debt, Intrust360° can
thing about buying anything on credit is to be help you find ways to do so. Just call 1300 001 360
sure you will be able to pay off the debt in full. to make an appointment today.
Otherwise, the interest charged to your total debt
can start adding up very quickly. Especially if the 1
Source: ASIC’s Report 580 Credit card lending in Australia 2018
interest is as high as 20 per cent.
360° | intrust360.com.au [ 7 ]Brendan’s Banter
The economic musings of a super fund CEO
Despite some market volatility rising
in the latter half of 2018, Intrust
Political and economic
Super’s Balanced option returned concerns
a positive result of 0.92% for the Right now, investors are feeling skittish about a global economic
downturn. They are expecting higher interest rates, a slowdown in
calendar year, thanks to a well- company earnings growth and an escalation in the US and China
diversified portfolio and active trade war. These worries are all adding to the current market
volatility. All eyes are on the US and China and the ongoing trade
investment management. negotiations. Trade officials from both countries met in January
The result was also helped by for the first time after agreeing to a 90-day truce. The truce
some of the excellent growth prevented the US from implementing a planned increase to the
the sharemarkets experienced current trade tariffs [from 10% to 25%]. A deadline of 31 March
early last year, which helped to 2019 has been set for an agreement between the two countries.
In late December, President Trump’s announcement that progress
counteract some of the negative
was being made on a trade deal with President Xi sparked a slight
returns in the latter half of 2018.
sharemarket rally.
It’s unfortunately the case that
market volatility can occur from Compounding the concerns around US and China trade tensions
time to time. are the Brexit troubles in the UK. Prime Minister Theresa May
has negotiated a deal with the European Union [EU] to allow the
The important thing to remember
UK to exit the EU by March 2019. At the time of writing, the UK
is that superannuation is designed
Parliament has so far refused to back the deal, while the EU
to work effectively in the long term. are refusing to renegotiate. Without Parliament’s approval, the
We are in the later stages of an UK may be forced to leave the EU without an exit deal, further
economic cycle and higher market complicating Britain’s political and economic future. Investors
volatility is normal at this stage. never like uncertainty, and it’s these political and economic
Although volatility can make us all issues, combined with rising interest rates, that are having a
feel nervous, it can be an investor’s significant impact on market returns.
best friend by providing buying
opportunities in a market that is
seemingly oversold. Looking ahead in 2019
There are various factors indicating that market volatility could
continue throughout 2019. Global economic growth is expected
to slow. Combined with continuing geopolitical concerns, this
may keep investors worried and it’s likely that returns across
various assets could be quite varied throughout the year.
I would encourage any Intrust Super members wishing to discuss
their current financial situation to arrange a meeting with our
friendly financial advice team, Intrust360°. It might be better to
avoid the impulse to sell when volatility strikes – otherwise you
could miss out on a possible recovery when share prices grow
once again. The most important thing to remember is that Intrust
Super’s portfolio is well diversified and designed to benefit you
over the long term. Over the last 10 years to 31 December 2018,
the Intrust Super Balanced option has returned 8.13%, compared
*Source: SuperRatings Fund Crediting Rate
Survey – SR50 Balanced [60-76] Index to the median Balanced return of 7.81%*. And keep in mind, when
December 2018 prices are low, your contributions can go further!
[ 8 ] 360° | THE NEW YEAR EDITIONCore Super, Executive Super and Select
Super returns as of 31 DECEmber 2018
Conservative^
[fixed interest]
International
Australian
MySuper |
Combined
Balanced
Property
Shares^
Growth
Shares
Shares
Stable
Bonds
Cash
Monthly -0.16% -0.33% -1.21% -1.77% -2.45% 0.18% 0.92% 1.51% -1.21% -3.54%
FYTD -0.18% -0.86% -3.24% -4.74% -7.33% 1.03% 1.40% 3.20% -8.39% -6.26%
Rolling 1 year 2.22% 1.86% 0.92% 0.42% -1.97% 2.01% 2.10% 10.31% -3.40% -0.70%
Rolling 3 years 4.62% 5.10% 6.69% 7.80% 7.48% 2.11% 3.32% 12.55% 7.24% 7.57%
Rolling 5 years 5.08% 5.27% 7.35% 8.72% 8.37% 2.34% 4.19% 11.57% 7.34% 8.52%
Rolling 7 years 5.83% 7.23% 9.42% 11.11% 11.79% 2.80% 4.40% 10.02% 10.16% 13.54%
Rolling 10 years 5.90% 6.71% 8.13% 9.08% 10.19% 2.95% 6.30% 7.53% 9.51% 10.57%
As investment markets move up and down over time, it is important to remember that past performance is not an indication of future
returns. Please note that the investment returns shown above have been rounded. This means there may be minor discrepancies when
adding to achieve the compound return.
*The Conservative and Combined Shares investment options are available in Executive Super and Select Super only.
Transition to retirement [TTR]
returns as of 31 DECEmber 2018
[fixed interest]
International
Conservative
Australian
Combined
Balanced
Property
Growth
Shares
Shares
Shares
Stable
Bonds
Cash
Monthly -0.16% -0.33% -1.21% -1.77% -2.45% 0.18% 0.92% 1.51% -1.21% -3.54%
FYTD -0.18% -0.86% -3.24% -4.74% -7.33% 1.03% 1.40% 3.20% -8.39% -6.26%
Rolling 1 year 2.22% 1.86% 0.92% 0.42% -1.97% 2.01% 2.10% 10.31% -3.40% -0.70%
Rolling 3 years 5.02% 5.60% 7.29% 8.48% 8.31% 2.30% 3.62% 13.54% 7.95% 8.23%
Rolling 5 years 5.45% 5.97% 8.12% 9.36% 8.85% 2.62% 4.70% 12.57% 8.20% 9.26%
Rolling 7 years 6.44% 8.19% 10.41% 12.01% 12.59% 3.20% 5.02% 10.94% 11.17% 14.25%
Rolling 10 years 6.55% 7.54% 8.92% 9.78% 10.78% 3.34% 7.30% 8.15% 10.33% 11.06%
As investment markets move up and down over time, it is important to remember that past performance is not an indication of future
returns. Please note that the investment returns shown above have been rounded. This means there may be minor discrepancies when
adding to achieve the compounded return.
360° | intrust360.com.au [ 9 ]Super Stream returns as of
31 DECEmber 2018
[fixed interest]
International
Conservative
Australian
Combined
Balanced
Property
Growth
Shares
Shares
Shares
Stable
Bonds
Cash
Monthly -0.18% -0.38% -1.38% -2.01% -2.80% 0.21% 1.07% 1.72% -1.39% -4.02%
FYTD -0.17% -1.07% -3.71% -5.48% -8.34% 1.21% 1.69% 3.72% -9.51% -7.13%
Rolling 1 year 2.43% 1.99% 0.90% 0.07% -2.38% 2.36% 2.45% 11.42% -3.99% -1.20%
Rolling 3 years 5.17% 5.81% 7.46% 8.58% 8.51% 2.47% 3.82% 14.08% 8.11% 8.44%
Rolling 5 years 5.54% 6.10% 8.22% 9.43% 8.97% 2.72% 4.82% 12.89% 8.29% 9.38%
Rolling 7 years 6.50% 8.28% 10.48% 12.06% 12.68% 3.28% 5.10% 11.17% 11.23% 14.34%
Rolling 10 years 6.60% 7.60% 8.97% 9.81% 10.84% 3.40% 7.36% 8.31% 10.37% 11.12%
As investment markets move up and down over time, it is important to remember that past performance is not an indication of future
returns. Please note that the investment returns shown above have been rounded. This means there may be minor discrepancies when
adding to achieve the compound return.
[ 10 ] 360° | THE NEW YEAR EDITIONIntroducing
Would you like to help test our new app?
SuperCents allows members to seamlessly invest spare change from their everyday
transactions into their super account. The app helps them round-up the costs of their
purchases to start making small contributions to super over time.
Intrust Super understands that although superannuation is a great vehicle to save money, it’s
hard for members to prioritise super savings when other costs take up so much of the weekly
budget. In fact, research conducted by the Fund in July revealed 46 per cent of respondents
were not currently making extra contributions to super because they believed that they
couldn’t afford to.
More concerningly, 71 per cent felt they would not have enough super to live comfortably
in retirement. And 32 per cent were interested in making extra contributions but were not
currently doing so.The results show that many Intrust Super members are facing some
challenges when it comes to super contributions.
SuperCents can help make it easier for members to overcome some of these challenges.
Members can use it to save for their retirement without even having to think about it. What’s
more, users of SuperCents could potentially receive the Government co-contribution by
doing so. It could even help them save for a house deposit using the First Home Super Saver
scheme. After all, the small change saved now could add up to thousands of extra retirement
savings in the future!
To test our new app, an exclusive pilot group of just 100 members will be selected. These
members will be the first to use the app and have the opportunity to provide feedback. In return
for your participation, you will always be able to use the app completely free of charge! If you
would like to be part of the SuperCents pilot group, please let us know by calling 132 467. The
app is available to download on the App Store and Google Play – just search for “SuperCents”.
360° | intrust360.com.au [ 11 ]Start the new year with y financial foot forward [ 12 ] 360° | THE NEW YEAR EDITION
The new year is a time when many of us intend to improve our
financial plans. While most of the year is still ahead, it feels like
there’s plenty of opportunity to implement new strategies.
Understandably, you probably didn’t want to spend the break
[if you even had one] looking at your financial goals. And then
once you returned from holidays – well, the year had already
started! Sorting out your finances, looking at your budget,
trying to make savings – doesn’t it all just feel like more
work? It’s a good idea in principal but finding the energy
to do it can prove difficult.
So should you resign yourself to delaying your financial
planning to some unknown future date? Or is there a
better solution?
Ask a professional
instead!
Why not take the opportunity to call in help from the
professionals? The financial advisers at Intrust360° have the
experience to find ways you can reduce costs that you may
not have thought of.
Our advisers will consider your individual objectives, financial
situation and needs and make a recommendation based on
those factors. They can explain why these recommendations
will be suitable for you and provide assistance with
implementing the strategy.
So don’t feel like you’ve missed the boat on making new year
financial plans. Give Intrust360° a call on 1300 001 360 and
book an appointment today.
No time for an
appointment?
No worries!
Try out our upgraded online financial advice service, Super
Blueprint! Super Blueprint can deliver you a personalised
financial plan, complete with ongoing recommendations, all
from the comfort of your own home. Visit intrust360.com.au
today – or read more about Super Blueprint on page 4!
your
360° | intrust360.com.au [ 13 ]Advice on super? JUST A PHONE CALL AWAY! Would you like some super advice, without taking the time to make an appointment with a financial adviser? We can help! Intrust360° members can now receive simple super advice from our qualified financial advisers straight over the phone! Access high-quality, low-cost financial advice through Phone360°. Call 1300 001 360 or visit intrust360.com.au to find out more.
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