Enhancements to our Lifecycle Investment Strategy

Here at Mine Super, we take our responsibility to deliver exceptional retirement outcomes very seriously. One of the best ways we can do this is by continually enhancing the products we offer to members.

The objective of the new Lifecycle Investment Strategy is simple: to improve retirement outcomes for members, by giving you significant exposure to 'growth assets' such as shares and property in the early stages of your working life, and then reduce this as you get older by increasing your exposure to 'defensive assets' such as bonds and cash. This helps provide less volatile investment returns as you get older.

As part of this change, we’re also renaming two of our investment options. The Aggressive investment option will be called High Growth, while the Balanced investment option will be called Conservative Balanced.

For more information about the changes, read our recent communication to members. Or, watch the video below for a quick overview of how the Lifecycle Investment Strategy works.

Making the most of your nest egg

With the improved Lifecycle Investment Strategy, members will be invested in 'growth assets' (like shares and property) for longer, with 100% invested in the High Growth option up to age 50. Then, when you turn 51 your super will start to move to more ‘defensive assets’ in a mix of two investment options – High Growth and Conservative Balanced. The percentage mix of your investment in these options will change each year in line with your birthday, as you can see in the below graph. This means, as you get older, your investment in Conservative Balanced will grow, while your investment in High Growth will reduce.

M00294_Lifecycle-Graphic_FEB-2021_RGB_1.3_Primary

Note: There are no changes to how the investment options are invested and their investment return objectives, which are reviewed on an ongoing basis in line with our standard review process. As some members will now move into a different investment option and / or investment mix, the associated investment fees and indirect costs may change.

Below are some examples to show you how the new Lifecycle Investment Strategy will be applied.

All your super is invested in the Lifecycle Investment Strategy

On Thursday, 25 March 2021, your super will be switched to the mix of investment options designated for your age.

A 53 year old member with $315,000 invested in the Lifecycle Investment Strategy is currently invested in the Growth investment option.

On Thursday, 25 March 2021, $252,000 (80%) will be invested in the High Growth investment option and $63,000 (20%) in the Conservative Balanced investment option.   
 53-year-old-member-with-315000                                

A 30 year old member with $100,000 invested in the Lifecycle Investment Strategy is currently invested in the Aggressive investment option. On Thursday, 25 March 2021, $100,000 (100%) will be invested in the High Growth investment option.

 30-year-old-member-with-100000

 

Part of your super is invested in the Lifecycle Investment Strategy

On Thursday, 25 March 2021, the portion of your super in the Lifecycle Investment Strategy will be switched to the mix of investment options designated for your age. The part of your super not invested in the Lifecycle Investment Strategy is not affected by these changes.

A 60 year old member currently has $80,000 invested in the Balanced investment option under the Lifecycle Investment Strategy and $20,000 invested in the Australian Shares investment option.    

On Thursday, 25 March 2021, the $80,000 invested in the Lifecycle Investment Strategy will be split $26,400 (33%) in the High Growth investment option and $53,600 (67%) in the Conservative Balanced investment option.

The $20,000 invested in the Australian Shares investment option will not change.

 60-year-old-member-with-80000

None of your super is invested in the Lifecycle Investment Strategy

You’re not affected by the changes. However, you can switch your super to the Lifecycle Investment Strategy at any time, and from Thursday, 25 March 2021 it will be invested in the new Lifecycle Investment Strategy.

 

Don’t want your super to move to the new Lifecycle Investment Strategy?

All you need to do is log in to your online account and switch your super out of the Lifecycle Investment Strategy and into the investment options of your choice. You can also do this in writing using our Make an investment choice form.

Note: if you do this, you’ll no longer be invested in the Lifecycle Investment Strategy and your super will no longer automatically switch in line with your birthday. If you change your mind in the future, you can simply perform another switch online or by using the form.

Other good news

Did you know? We’re also reducing our fees from Thursday, 25 March 2021. The fixed administration fee you’ll be charged will be reduced by 50% from $104 to $52 per year. This means, a 44 year old member will have saved an extra $1,196 in fees, creating an extra $2,3141 at age 67. As you can see, saving now with less administration fees makes a difference over the long term!2 

Turn to Mine

If you have any questions about these changes, or would like to make an appointment with Mine Super Financial Advice, please call us on 13 64 63 or email help@mine.com.au.

Assuming a 5% annual investment return compounded over the period.

This calculation does not factor in individual circumstances such as salary, personal contributions or other fees and costs associated with holding a super account. Source Moneysmart.gov.au