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Westscheme's Superannuation Product Identification Number or SPIN, is:
For accumulation: WSF0101AU
For pension: WSF0102AU
Westscheme's ABN is:
FUND (WESTSCHEME) = 68 559 391 482
TRUSTEE (Westscheme Pty Ltd) = 33 009 194 218
Super is money that we put away in our working life so we can live more comfortably when we retire. For most Australians, super is the easiest and most tax effective way to save for retirement. It is designed as a long-term savings arrangement where your employer* and/or you set aside money, which is then invested for your future.
*Employers are required by law to make superannuation contributions for most employees.
A regular injection of savings into your super fund can help finance your retirement years while you’re busy getting on with your life now. Your super account is invested, and your earnings are reinvested, which means that your super benefit accumulates at a much faster rate due to compound interest.
Westscheme wishes to explain in some detail the apparent discrepancy between the interim net investment performance obtained from the Westscheme website and the revised actual net investment performance posted to members’ accounts with regard to the Target Return investment option. This explanation also seeks to address briefly any potential concerns members may have about Westscheme’s approach to the valuation of its non-listed target returns assets.
To read the full article click here
For the investment strategy for Westscheme's principal (default) investment option, the Westscheme Trustee's Selection, click here.
When selecting your super fund there are many factors to keep in mind, some of the key points to keep in mind include:
• Investment performance
• Fees
• Investment choice
• Insurance
• Other products and services
• Communications with members
From 1 July 2005 many employees have the opportunity to choose the superannuation fund their employer’s Superannuation Guarantee (SG) contributions are paid into.
Which employees are eligible for choice?
• Employees covered by Federal Awards;
• Employees not covered by an award or registered agreement; and
• Employees employed under a state industrial award or agreement.
Which employees are not eligible for Choice?
• Employees employed under certain Victorian employment agreements;
• Employees whose super is paid into a Defined Benefit Fund; and
• Employees under an ANA where a fund is specified.
It's as simple as filling out a form and handing it to your employer.
The 'Application for Employee Choice of Superannuation Fund' form is available here.
Lifestyle is a personal thing - everyone has their own preference of lifestyle they want to lead in retirement. However, it is never too early to start thinking about the lifestyle you want to lead in your retirement. Are you wanting to cover just basic living costs or are you expecting your super to support travel, hobbies or an active social life? Asking yourself these retirement lifestyle questions will help you determine how much money you need to live on.
Getting good advice can make all the difference. Your prospective retirement is definitely the right time to call in the experts as some retirement decisions can prove impossible or expensive to change. Contact a Financial Adviser, Industry Fund Financial Planning, to discuss your retirement plans and requirements.
The Government's Age Pension was designed to financially assist Australians whilst in retirement. The maximum Age Pension today (as at March 2009) is about $14,814 per year for singles and $24,746 per year for a couple. If you need more than this, then you will need to rely on your own retirement savings. For all your Centrelink needs, or to make an appointment call 13 10 21 or visit www.centrelink.gov.au
Experts have indicated that, when planning the cost of your retirement and seeking a similar lifestyle to your working life, you generally need a minimum of 65% of your pre-retirement income for your retirement. Example, if your pre-retirement income per annum is $40,000 then you will most likely require at least $26,000.
You may want to consider whether your employer’s SG contributions will be enough to fund your retirement goals. Making extra contributions by way of salary sacrifice, personal contributions, or contributing for your spouse can be an effective way to increase your end payout at retirement. The key is taking advantage of compound interest by starting early.
The Government Co-Contribution is where the government contributes into your super on the condition you make personal contributions into a super fund such as Westscheme. This is available to members who earned less than $61,920 per annum and are under 71 years of age. Other conditions apply, visit www.ato.gov.au or contact Westscheme for further information.
Contribution splitting allows you to split your super with your spouse, provided your balance with Westscheme does not reach less than $5,000. Other conditions apply, contact Westscheme for further information.
Different investment options have different levels of risk and return. It is important that you consider your retirement objectives and tolerance to risk before you make an investment choice. We encourage you to seek professional financial advice.
Understanding your own risk tolerance ensures your investment choices reflect your long-term investment objectives, and the level of risk you’re willing to take to get there. For example, investors who have a longer time until retirement may want higher returns over the longer term and would not be overly concerned about receiving negative returns in some years. Conversely, investors who have a short time until retirement may be unwilling to accept short-term fluctuations for long-term gains.
By law, you generally get your super payout only when you:
• Retire from the workforce; and also
• Reach the minimum preservation age set by law, known as your preservation age. Your preservation age depends on when you were born, as shown in the table below:
| If you were born: | Your preservation age is: |
| After June 1964 | 60 |
| July 1963- June 1964 | 59 |
| July 1962- June 1963 | 58 |
| July 1961- June 1962 | 57 |
| July 1960- June 1961 | 56 |
| Before July 1960 | 55 |
Please contact Westscheme for more information if you wish to claim your superannuation on these grounds, or for more information on your eligibility to make a claim visit: www.apra.gov.au/superannuation/early-release-of-superannuation-benefits.cfm
This means that if you've reached your preservation age, you'll no longer be forced to fully retire from paid employment in order to gain access to your super funds. You can instead choose to access your funds through a non-commutable income stream such as Westscheme's Pension, while you continue to work. To learn more about these products, read about pensions.
Westscheme’s superannuation products (or member investment options) are subject to tax on investment earnings, in particular, investment income is taxed at a maximum of 15% and capital gains are taxed at 15% (if investments are held for less than one year) or 10% (if investments are held for more than one year). Westscheme’s pension products are not subject to tax on investment earnings, but are still entitled to dividend imputation credits.
When investment earnings are positive for a particular member investment option, Westscheme’s superannuation product is expected to produce a lower net investment performance rate than the equivalent pension product. This is because the net investment performance rate for Westscheme’s superannuation product is calculated after deducting tax. However, when investment earnings are negative, Westscheme’s superannuation product can provide a better (that is, less negative) net investment performance rate than the equivalent pension product. This is because negative investment earnings reduce Westscheme’s deferred tax liability[1] and, hence, generate tax benefit for Westscheme’s superannuation product in periods when investment earnings are negative.
For the financial year to June 2009, Westscheme’s Trustee’s Selection, Screened Investment, Australian Shares and Overseas Shares pension investment options generated negative net investment performance. The net investment performance rates for these pension investment options are calculated after deducting fees and including the benefit of dividend imputation credits. The net investment performance rates for Westscheme’s equivalent superannuation investment options are calculated after deducting fees and including the benefit of dividend imputation credits (similar to Westscheme’s pension products), but also include the tax benefits associated with a reduction in Westscheme’s deferred tax liability (the latter tax benefit is only applicable to Westscheme’s superannuation products as the investment earnings on Westscheme pension products are not taxable). As a result, Westscheme’s Trustee’s Selection, Screened Investment, Australian Shares and Overseas Shares pension investment options generated larger negative net investment performance than the equivalent superannuation investment options over the financial year to April 2008.
For the financial year to June 2009, Westscheme’s Cash, and Bonds pension investment options have provided positive net investment performance. As a result, Westscheme’s equivalent superannuation investment options have provided lower net investment performance than the equivalent pension investment options, as the net investment performance rates in respect of these superannuation investment options are calculated after deducting tax on investment earnings.
Please note that this statement has been prepared for the information of Westscheme’s members and does not constitute investment or taxation advice. Before making an investment decision you should obtain a copy of the Westscheme Product Disclosure Statement available on this website and, if applicable, obtain financial advice.
[1] The Australian Accounting Standard AASB 112 – Income Taxes requires the recognition and measurement of deferred tax liability/deferred tax asset, based on the net realisable market value of investments. Deferred tax liability arises mainly due to unrealised gains on investments. Westscheme is required to reserve in its accounts future capital gains tax payable consistent with the net realisable market value of investments presented in its financial statements. As at 30 June 2009, Westscheme’s deferred tax liability in respect of unrealised gains on investments was $2.52 million.
Transferring your other super account(s) into your Westscheme account could increase your retirement savings by reducing your costs. Westscheme does not charge a fee to recover your rollover(s), although your other account may. Before you decide to transfer your other super account(s) into Westscheme, it’s a good idea to make sure you don’t lose out on benefits and entitlements by leaving your existing fund(s).
Some questions you should consider are:
• Will I lose any insurance cover by leaving my other fund(s)?
• Will having one fund affect my investment returns?
• Does my other fund(s) charge any fees or penalties for me to transfer out?
• What will happen to the costs and charges I will pay on my super?
You may wish to seek professional advice before making any decisions to rollover accounts.
You may have lost track of your super due to changing jobs, changing address or changing your name. When a regular super fund can no longer locate you, they often transfer your super to an Eligible Rollover Fund, such as AUSfund.
To get in touch with AUSfund go to www.unclaimedsuper.com.au or go to the ATO website to get more information.
Click here to read the Glossary of terms.
If your super related question wasn’t addressed in the FAQs, please read Westscheme’s Member Handbook/Product Disclosure Statement.
Alternatively, contact us.