15. A flexible new pension from Russell

The new super rules provide you with more flexibility as you transition from work to retirement, and once you stop working. We’ve designed the Russell Private Active Pension to help you take advantage of the new rules. It combines the features of a contribution style account and a pension – so you can keep a single account as your make changes to your lifestyle.

Retirement is changing

The way people now approach retirement is different from previous generations. Rather than never working again, people continue to redefine their lives. This might mean launching a new career, continuing work on a part-time basis, contributing to the community through volunteer work, going back to school, discovering the world or spending time with family and friends; retirement is no longer one‑size-fits-all.

New rules make it simpler

If you are over 60, new rules will give you a lot more freedom with decisions about what you do with your superannuation. Superannuation benefits paid to you from a taxed fund will be tax free, regardless of whether you take your superannuation as a lump sum or as a regular payment. It means some of your decisions may be simpler, giving you more freedom to choose and change the way you want to save for, and then fund, your retirement.

If you’re not yet 60, it’s good news too. Changes around how you are able to use your super as a pension as you transition into retirement give you more options, and the tax you pay should you choose to take a lump sum has been simplified.

There are other benefits for everyone. You are no longer required to begin taking your money out of superannuation when you reach 65, which means you can keep enjoying some of the tax benefits superannuation offers. And new pension rules also mean that there is no maximum amount on how much you are paid each year once you are eligible to start receiving regular payments in the form of an income stream after retirement.

Russell’s new pension is flexible

The Russell Private Active Pension is a highly flexible pension product, giving people who are either retired or approaching retirement the ability to create the lifestyle they want. At the same time, investors are also able to access Russell’s quality investments at wholesale prices.

In the Russell Private Active Pension you can link a contribution account to one or more pensions, all within the one product account. This means you are able to continue building your superannuation while also taking money out (as an income stream or lump sum), and start and stop multiple income streams, in a single product. The linked contribution account means you can keep money in superannuation for as long as you want, or continue making contributions as long as the rules permit.

And you have one account number and receive one statement, making it easy to keep track of your financial position.

All-in-one account

The Russell Private Active Pension at a glance

Linked contribution account
You have the convenience of a contribution account and a pension account in one, allowing you to make contributions and receive payments from a single account – creating an easier transition from work to retirement. There are no account keeping fees associated with the contribution account, giving you the freedom to use it, as and when you need to.

Multiple pension accounts in one
You can establish multiple retirement income streams under the one account, providing you with maximum flexibility and the ability to make changes to the way your income is structured throughout your retirement. You won’t pay any transaction costs when you move money between your accounts.

Tiered fee structure
Be rewarded with lower fees the more you invest (for amounts over $500,000).

Link family accounts for lower fees
Link your account with another family member to take advantage of our tiered fee structure. Separate accounts are still fully maintained.

Invest at wholesale prices
Access the same expertise and investment opportunities as many of the world’s biggest investors at a wholesale price.

Simple fees
There are no administration fees to maintain your contribution account:

• No member fee
• No administration fee
• No establishment fee
• No contribution fee
• No withdrawal fee
• No termination fee
• No switching fee

You only pay investment management fees at wholesale rates.

Flexible ways to pay for advice
If you have an adviser you can choose how you would like to pay them. Any fee you agree on can be deducted directly from your account either up front or on an ongoing basis, and as a percentage of your account balance or as a flat dollar amount, which can be indexed.

World’s largest multi-manager
Gain access to Russell’s disciplined and diversified approach to investing. We diversify your investments across asset classes, investment styles and among some of the world’s best money managers that we have researched, selected and continuously monitor.

Choose from Russell’s 5 diversified funds and 8 single asset multi-manager portfolios.

Easy to manage
Because all your accounts are linked in one product, it’s easier to keep track of your money with:

• One member number for life
• One statement
• One channel of communication
• One set of fees

Flexible contribution options
Choose how and when you make any contributions to your super account:

• BPay
• Cheque
• Direct credit (via the internet)

Your employer can also put money directly into your account.

Transact online
A dedicated website allows you to:

• Make contributions, switch investments, vary your pension payments and update your details
• Access your account balance and other information
• > View your quarterly and annual benefit statements.

 

 

 

This brochure is issued by Russell Financial Solutions Pty Ltd (‘RFS’), ABN 84 010 799 041, AFSL 229850, as a service to members of Russell SuperSolution. RFS is a member of the Russell Investment Group of companies (‘Russell Group’). The Russell Group also provides trusteeship, fund administration, consulting and investment management services to Russell SuperSolution. For information on the fees the Russell Group receives in relation to these services refer to the PDS of Russell SuperSolution and the Financial Services Guide for RFS. The advice in brochure is general in nature and has been prepared without taking into account your individual objectives, financial situation or needs (‘financial circumstances’). As a result, before acting on any of the advice you should consider whether it is appropriate for you, in light of your particular financial circumstances. Before making any investment decision in relation to Russell.

Website: www.russell.com.au   Helpline: 1800 555 667     Email: yoursupersolution@russellsuper.com