How your super is invested can make a difference to its performance and balance by the time you retire. Typically, growth assets like property and shares have higher returns than defensive assets like cash and fixed interest, but carry more risk. Most investment options in super funds have a mix of both growth and defensive assets. Your super balance may go up and down when markets fluctuate from time to time so it’s a good idea to review and make sure you’re comfortable with the type of investment options selected in your super. With Essential Super, your money is automatically invested in our Lifestage option, which is based on your age. Over 90%3 of our members are in this option. Our Lifestage option has been designed to give more exposure to growth at a younger age and more defensive as members get older. Your investment mix is adjusted as you grow older.
To see how your super is invested, log into NetBank > select Essential Super > Investments
Our Investment Fund Fact sheets will show you a short summary of the all of the available investment options, the strategy and its performance over time.
1Before you make a decision on consolidating your super, you should compare the costs, fees, risks and benefits of your other super funds against Essential Super. It makes sense to consider whether you can replace any insurance cover you may lose upon rolling over, potential costs for withdrawing from other super funds as well as any investment or tax implications. You should also decide which super fund you want your employer to pay your future employer contributions to and complete a Super Choice form if necessary.
2Contribution caps apply
3 Assumptions: Projection starts at 1 July 2020; annual salary has a marginal tax rate of 32.5% + 2% Medicare levy (low income / low and middle income tax offsets apply); salary sacrifice is $10 per week; 15% contributions tax applies to pre-tax contributions; salary and salary sacrifice contributions increase each year by salary growth of 3.2% pa; employer super guarantee contributions of 9.5% pa (increasing gradually to 12% in line with legislation); the investment rate of return based on a balanced earning rate of 3.46% pa compound weekly net of tax and fees; results in today's dollars discounted by CPI inflation of 3.2% pa. Take home pay figures do not include the net salary sacrifice amount. Source: Colonial First State.
4 As at 31 March 2020
Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFS) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435 (Essential Super) and is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 (Bank). This document may include general financial product advice but does not consider your individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) and the Reference Guide for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product. Download the PDS and Reference Guide from this page, or call us on 13 4074 for a copy. The Bank and its subsidiaries do not guarantee the performance of Essential Super and an investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. Where we mention ‘we’, ‘us’ or ‘our’, we mean CFS.