Use this handy checklist to help your super savings last the distance and keep your pension working for you.

Review your investment options

Your risk tolerance

As life expectancies for men and women continue to rise, your pension may have to sustain your lifestyle in retirement for over 25 years. So how can you help ensure your pension lasts?

The longer your investment is exposed to growth assets, such as equities, the more earnings your investment can potentially generate. However, with higher investment returns comes higher investment risk.

It is important to ensure the investment option or mix of options you choose matches your risk tolerance, however, you may find that as time goes on, you feel more tolerant of the volatility of sharemarkets and the effect this has on your pension balance. In this case, or if your circumstances have changed, you may like to review the investment options your pension is invested in.

To view your current investment options, simply login to VicSuper MembersOnline from vicsuper.com.au

Rebalance your investment options

If your pension is invested in more than one investment option, ‘rebalancing’ allows you to realign your investment option allocation and keep your account balance as close to your selected allocation as possible.

Why would you need to do this? Well, as investment returns vary between investment options you may end up with different balances than you intended in each of your chosen investment options.

Also, if you requested your pension payments and any partial withdrawals (if applicable) to be drawn from certain investment options, after a short period of time the percentage of your money in your chosen investment options can vary considerably.

Rebalancing your account on 1 July each year can ensure your investments are realigned with your original allocation.

To rebalance your investment options, simply complete the Rebalance your investment option allocation form available from vicsuper.com.au/forms. You can also call our Member Centre on toll free 1300 366 216 to request a copy to be sent to you free of charge.

Check your Centrelink position

Centrelink entitlements

As you draw down on your pension and/or your circumstances change, your eligibility for Centrelink entitlements may also change – you may be eligible for the Age Pension for the first time, or increased entitlements if you already receive the Age Pension.

Age Pension eligibility

The Age Pension eligibility requirements changed from 30 September 2009.

If you are male and over age 65, or female and over age 64, you may be eligible for the Centrelink Age Pension or part pension if:

• You’re single, your total assets excluding your own home don’t exceed $626,000 in value, and your assessable income is below $38,630 pa.
• You’re in a couple (including opposite and same sex de facto couples), your total assets don’t exceed $928,000 in value, and your combined assessable income is below $59,124 pa.

Note that if you don’t own your own home, the cut-off amount is higher. You also need to satisfy residency criteria to receive the Age Pension.

Age Pension amounts

The Age Pension provides fortnightly payments for up to $671.90 for singles and up to $506.50 each for couples. These amounts increased from 30 September 2009.

To find out more about the Age Pension and how it can supplement your super pension, you may like to book an appointment with a VicSuper superannuation adviser.

VicSuper’s advice service is offered at no cost and no obligation. To make an appointment, visit vicsuper.com.au/superadvice or call our Member Centre on toll free 1300 366 216.

Revisit your pension payment frequency

New pension payment frequency

To enable greater flexibility for you, from 1 July 2010 VicSuper will be introducing semi-monthly pension payments. If you feel more frequent pension payments would be beneficial for you and your lifestyle, you can now elect for your pension to be paid to you on the 15th day and last working day of each month.

More choice for you

If you’re happy receiving pension payments monthly, quarterly, half yearly or yearly, you also have an additional option – you can continue to receive your pension payments on the last working day of the applicable month, or you can elect to receive your pension payments on the 15th day of the applicable month.

For more information on semi-monthly payments or payment dates, and how to elect these options, please see the More frequent pension payments article.

Receive continuing advice

We recommend that you see a VicSuper superannuation adviser every few years, or if your situation changes. Your adviser can discuss any changing requirements you may have and help you assess whether your super strategy is still the most suitable and effective one for you.

VicSuper’s advice service is offered without charge and at no obligation. To make an appointment at any one of our five advice centres across Victoria, visit vicsuper.com.au/superadvice or call our Member Centre on toll free 1300 366 216.