Three key decisions aid members’ super strategies

10 June 2008

Plum Financial Services Limited (Plum) is helping members focus on some of the key decisions that could help boost their superannuation savings with a new education module, called Three keys to help unlock your super growth.

The new module is designed to cut through all the differing, and sometimes confusing, financial savings messages available in the market and focus on three key decisions that could help put members on the right track to achieving their retirement goals.

According to Plum’s Managing Director Mike Fitzsimons the new module will be rolled out to members as part of Plum’s ongoing education program in the coming months.

‘Even if members do nothing else but make these three decisions, it is more likely to result in a better retirement outcome. These decisions are relevant to almost every individual who has a superannuation account, and at the core of an individual managing their own super savings.’

The three key decisions include:

• Where to invest (your asset allocation)
• How much to invest (your level of contributions)
• How long to invest for (your time to and in retirement)

‘Increasingly people are being bombarded by differing financial messages in the media, at home on television and the radio, at work and even when doing leisure activities such as shopping. It is no wonder that people are often unsure which decision is the right decision to make,’ Mr Fitzsimons said.

‘We are making it easier for members to understand the decisions that can affect their superannuation savings growth and give easy and simple-to-apply tips on ways to grow savings. We also provide more detail and online tools, calculators and checklists for those members who prefer more information before making a decision.’

Plum’s hypothetical case study (see Appendix A below) illustrates how taking charge of these decisions could substantially alter an individual’s retirement income. In this example, David makes changes to his level of contributions and asset allocation and extends his retirement age.

Each decision by itself has a positive effect on his retirement income. Combined, the three decisions all result in his estimated retirement income increasing from 33% of his pre-retirement salary each year to 78% of his pre retirement salary every year.

The module encourages members to consider their current asset allocation, level of contributions and retirement age and then give some thought to what action, if any, they should take to change or adjust these.

‘If we can get members to think about these decisions and their positions now, even if they decide they have already made the best decisions for them and no change is required, then we have achieved our goal with this module,’ Mr Fitzsimons said.

‘Our objective is to ensure all our members are in the best possible position to achieve their retirement goals, and we do that by giving them the tools and education they need to make the best possible decisions about their superannuation.’

The module will be rolled out via face to face seminars and is supported by online webcast and printed materials available to members.

Read more about the Three key decisions (PDF 89kB).