How to meet your clients' super needs with MySuper Lifecycle
Many Australians might not realise their first investment was probably through their super fund. And while their investments need to change over time, some super funds continue the same investment strategy without adjustments, which could be costing members in the long run.
true
At Aware Super we tailor our super products to meet members’ changing needs. Our market-leading MySuper Lifecycle investment option considers a member’s age and life stage.
Close to 600,000, or more than 85% of our super members in the accumulation phase are with our default MySuper Lifecycle option – and for good reason – it evolves with their changing needs over time.
Best of all, these changes take place automatically (unless our members choose otherwise), so members who want to ‘set and forget’ can carry on with what matters most to them, while we keep an eye on their investments.
Here’s how it works:
Aware Super’s MySuper Lifecycle option
Grow phase:
Age 16-55
Until age 55, our members are 100% invested in the High Growth option. This phase of the Lifecycle approach is designed to make the most of the potential to grow and maximise returns. Investments include a high allocation of growth assets because at this stage in life, there’s plenty of time to recover from any market downturns.
Manage phase:
Age 56-64
At age 56, members go through a series of yearly adjustments where we gradually transition their investments away from the High Growth option into the Growth option, and then eventually into the Balanced Growth option. The Growth option aims to generate strong returns, but also includes some lower risk assets to act as a cushion from short-term dips in the market. The lower risk Balanced Growth option incorporates risk management strategies that aim to mitigate the impact of large market falls, which is important as retirement draws closer.
Enjoy phase:
65+
At age 65, many members look to retire or are actively considering it. It’s important for them to maintain their savings so they can enjoy their best possible retirement.
At this stage, all funds are 100% invested in the Balanced Growth option. The lower risk profile helps to safeguard savings and provides a more stable ongoing return.
Other super funds vs Aware Super
Most superannuation funds invest the savings of their default MySuper members in a single investment option, resulting in an investment mix that doesn't change for their members, regardless of their age.
At Aware Super, by tailoring our products to members' lifecycle and taking into consideration different life events, we embrace a more tailored ‘whole person’ strategy.
As an adviser, this approach provides you with more opportunities to engage with your clients at different stages of their life. It also opens doors for you to start conversations with new clients.
By managing the balance between risk and return to suit various ages, we aim to provide a more stable ongoing return in the lead-up retirement. Aware Super’s MySuper Lifecycle High Growth option is the no. 1 performer over 3, 5 & 10 years.*
Where to next?
Maximise your clients' super
We offer a range of options to suit differing member needs, including MySuper Lifecycle, which tailors their investment mix based on their age.
Our performance
We have a track record of choosing investments which deliver strong long-term returns. Strong returns help your super grow over time, so you have more money in retirement.
Socially Conscious investment options
We have four diversified Socially Conscious options. They seek to avoid or restrict a range of investments considered to have a negative environmental or social impact.