How can I… invest my super meaningfully?

Meet Ling1:

  • 34 years old
  • Earns $79,000
  • Accumulation 1 member
  • Super invested in Balanced option (default)
  • Home mortgage of $500,000
  • Has three small children

Ling has just joined UniSuper. She’s excited by all the options provided by her new fund, and is determined to get the most from her super.

Ling has a new job with a research institute affiliated with a university. She's curious about her new super fund, and spends some time on the UniSuper website comparing her investment and insurance options.

Ling is pleased to see that UniSuper offers environmentally sustainable investment options. Since having children, she's become increasingly concerned about global warming.

Ling’s also concerned about her children’s financial future should something happen to her. Her husband earns a reasonably good salary, but would definitely struggle to manage the mortgage repayments – as well as her children’s living expenses – without her income. Currently, she has the default level of death and Total and Permanent Disablement (TPD) cover with UniSuper, which is $232,000. Ling isn’t sure that this is enough.

On the UniSuper website, Ling noticed that the fund offers financial advice over the telephone. This seems like an efficient way for her to get help with her investment and insurance decisions. Ling fills in a form on the website and schedules a lunch time telephone advice appointment.

During the first call with the adviser, Ling explains what she's looking for in terms of information and guidance and answers some questions about her financial situation, goals and investment preferences. Ling and her adviser then discuss a range of options she has as a UniSuper member.

Around a week later, the adviser emails Ling a Statement of Advice, which they review together during a second phone call. Ling is very comfortable with the recommendations, and pleased that they address all her concerns. Ling now feels more in control with her super and insurance.

Could a UniSuper financial adviser help you? Get in touch to find out.

Ling's advice

Ling’s adviser recommended that she:

  • Switch from the default investment option to a combination of four sector options, with a heavy weighting towards the Sustainable High Growth option.
  • Apply for two additional units of cover for death and (TPD). If Ling did that within 180 days of being eligible to join the fund, it would be likely that she would get the extra units of cover without needing to provide medical evidence. This would give her an additional $464,000 in cover, and would cost an extra $3.36 per week. The amount of cover Ling would get for this price would decrease with each birthday (unless she opted for fixed cover).
  • Apply for Income Protection cover with UniSuper. This would provide an income of 75% of her salary, plus 10% super, if Ling couldn’t work for some time due to illness or injury.
Ling paid $510 for the financial advice (a face to face meeting may be available at an additional cost of $100). This fee was deducted from her super because the advice was entirely superannuation-related.

1. Ling is a hypothetical member, but the relevant facts are based on a real member. All information provided in this case study is based on the specific factual circumstances detailed in this scenario and it is not guaranteed and will vary depending on your specific circumstances. Applications for additional Death and Total and Permanent Disabled cover are subject to underwriting and are not guaranteed.

The information contained in this case study is not legal, taxation or accounting advice. It is intended to provide general information only. It has been prepared without taking into account your objectives, financial situation or personal needs. Prior to making any investment decisions, you should speak with a financial adviser to consider whether this information is appropriate for your needs, objectives and circumstances. You should also obtain a copy of the relevant product disclosure statement (PDS) prior to making a decision regarding any investment in any financial product. Whilst care has been taken in the preparation of this information, the accuracy or completeness of the information is not guaranteed. This case study was prepared and issued by UniSuper Management Pty Ltd ABN 91 006 961 799, AFSL No: 235907, which is also the administrator of, and wholly owned by, the UniSuper Superannuation fund (ABN 91 385 943 850). UniSuper Limited (ABN 54 006 027 121) is the trustee of the fund. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members.