Pension Investment Options
Your pension investment options
The Pension Division has five investment options available.
If you wish to make your own investment choice, you can choose how your pension account will be invested from the following options:
Cash, Prudent, Diversified, SRI/Ethical, High Growth
You may choose more than one investment option, however the total must equal 100%. If you do not make a choice, you will be invested in the Diversified option.Investment Performance Read the Product Disclosure Statement for more
Cash Top-up: Tailored Pension Strategy
The Cash Top-up is a tailored facility designed specifically for pension members, to meet short-term payment needs from cash while keeping your long-term money invested in a mix of assets:
- An amount equal to the first two years’ of your nominated pension payment amount will initially be switched to the Cash option from the Diversified (Default) option or your selected investment option(s)
- Each year, on the anniversary of the commencement of your pension, an additional amount will be switched to the Cash option as a Cash Top-up, to ensure that an amount equal to two years’ of your nominated pension payments is held in cash
- Your pension payments will be deducted from the Cash option until exhausted and then pro-rata from the investment options you hold
- There is no fee for these automatic switches to cash
You are able to opt out of the Cash Top-up facility when starting your pension or at any time by completing a Pension Investment Choice form. Where you have opted out of the Cash Top-up facility, your pension payments will be deducted proportionally across your investment options held at the time of payment.
Cash top-up example
Harry is aged 60 and has started a Pension with $200,000, selecting an annual pension income payment of $10,000, and has not made an investment choice.
As Harry chooses not to opt out of the Cash Top-up facility, when his Pension account is opened, $20,000 is switched to the Cash option ($10,000 x 2), with the remaining $180,000 invested in the Diversified (Default) option.
His pension income payments will be deducted from the Cash option, which may provide peace of mind if the investment markets fall over the short-term, as his income payments will not be deducted from growth assets. As the remainder of his money is invested in the Diversified option, the medium to long-term portion of his investment has exposure to growth assets, so he can potentially benefit from long-term investment returns.