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Retired and looking for more certainty over your returns?
Introducing CPIplus, a Pension investment option that aims to deliver a consistent and predetermined return above inflation each year.
Not available for Transition to Retirement Pensions. Though returns above inflation are predetermined annually, Hostplus can shorten the return period. Hostplus may also adjust the rate of return with at least 30 days’ notice.
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*Members with Term Allocated Pension, Lifetime Pension, Defined Benefit Pension, nil balances, non-standard investment options and some Maritime Contributory Accumulation members cannot access SuperSmart financial advice services.
Retirement
Retired and looking for more certainty over your returns?
Introducing CPIplus, a Pension investment option that aims to deliver a consistent and predetermined return above inflation each year.
Not available for Transition to Retirement Pensions. Though returns above inflation are predetermined annually, Hostplus can shorten the return period. Hostplus may also adjust the rate of return with at least 30 days’ notice.
Why Hostplus
Retired and looking for more certainty over your returns?
Introducing CPIplus, a Pension investment option that aims to deliver a consistent and predetermined return above inflation each year.
Not available for Transition to Retirement Pensions. Though returns above inflation are predetermined annually, Hostplus can shorten the return period. Hostplus may also adjust the rate of return with at least 30 days’ notice.
Product and fee information for advisers
Retired and looking for more certainty over your returns?
Introducing CPIplus, a Pension investment option that aims to deliver a consistent and predetermined return above inflation each year.
Not available for Transition to Retirement Pensions. Though returns above inflation are predetermined annually, Hostplus can shorten the return period. Hostplus may also adjust the rate of return with at least 30 days’ notice.
Is a Self-Managed Super Fund (SMSF) right for you?
More than a million Australians manage their own superannuation through a Self-Managed Super Fund (SMSF), but is it the right choice for you?
Making the right choice
Whether to start an SMSF depends on many factors including your financial goals, confidence, and willingness to take on the responsibility. For many, options like Hostplus Choiceplus provide the flexibility they want without the stress of managing everything themselves. For those who want even more control and are happy to be more hands on in managing their retirement savings, the information below outlines some key factors that should be considered before taking the plunge.
SMSFs are generally suitable for those who:
- Have a strong interest in and understanding of investing.
- Have a super balance large enough to justify the costs.
- Have the time (average of 100 hours per year*) and willingness to manage the fund and meet legal obligations.
- Prefer direct control over their retirement savings and investment decisions.
SMSFs may not be suitable for those who:
- Have lower super balances where the cost-benefit is limited.
- Prefer a hands-off approach or lack confidence in investment management.
- Do not have the time, expertise, or desire to deal with administration and compliance.
*Source: SMSF Investor Report, April 2021, Investment Trends
Understanding SMSFs
SMSFs offer more control and flexibility, but also come with more work, responsibility, and costs. They are best suited to people who are willing and able to actively manage their super.
Key benefits
- Investment Control: You choose what to invest in, including property, shares, and more.
- Flexibility: You can set your own investment strategy to match your goals and risk levels.
- Transparency: You know exactly where your money is invested.
- Property options: You can use your SMSF to invest in property, including your own business premises (if it fits your strategy).
- Combine balances: You can pool your super with family or business partners for greater investment power.
Key risks and responsibilities
- Time and knowledge needed: Managing an SMSF takes time and skill. You’re responsible for all decisions and may not be covered by compensation schemes if things go wrong.
- Costs: Fees for investing, accounting, auditing, and advice can be high.
- Personal liability: You’re legally responsible for the fund’s compliance and decisions, including regular reviews and audits.
- Property rules: SMSFs can’t be used for personal benefits, like buying a holiday home or paying off debts. Breaking the rules can lead to penalties.
- Complexity when members leave: If someone leaves or passes away, managing the fund or selling assets can be complicated.
For more information, refer to the MoneySmart and ATO websites.
Exit strategy: the importance of planning ahead
It's important to have an exit strategy from the outset. Winding up an SMSF can be more difficult and time-consuming than expected—especially if the key person managing the fund passes away, becomes incapacitated, or is no longer able to fulfill their duties.
Common triggers for winding up an SMSF include:
- Members/trustees no longer have time to manage the SMSF
- One or more members chooses to leave the fund.
- There is only one trustee remaining in the fund.
- Life events create a desire to simplify the member’s financial position.
It’s important to have a plan if you or another trustee can no longer manage the fund.
Learn more about winding up an SMSF.
Considerations for retirees
As trustees age, the complexity and administration of managing an SMSF can become overwhelming.
Health issues, declining capacity, or a desire for a simpler lifestyle often leads retirees to wind up their SMSFs.
Not ready for an SMSF? Consider Choiceplus
If you're not ready for the responsibilities of managing your own SMSF, Hostplus Choiceplus could be a great alternative. This option allows you to:
- Invest directly in ASX 300 shares, selected ETFs, LICs, and term deposits.
- Tailor your investment strategy while Hostplus handles the admin and compliance.
- Benefit from lower costs and reduced complexity.
