At ElectricSuper we offer a range of different investment options, from a higher risk/higher return option through to a cash option, which is low risk/low return.
When you joined us, your super was invested in the Balanced Growth option automatically. Balanced Growth is designed to sit somewhere between the two extremes of high risk/high return and low risk/low return.
While we expect the Balanced Growth option to deliver reasonable returns to our members, it doesn’t mean that it’s the best option for everyone.
We offer different investment options for you to choose from. The scheme you’re in with us will determine which of the options you can choose from. Picking the right one, or the right mix of options, is a really important choice.
Your ability to cope with risk
You need to consider how much of a risk you are prepared to take with your super. Of course everyone would love to make the most money possible, but if you’re going to lose sleep every time your super balance suddenly drops with a dip in the markets, that’s something to think about before you start making changes.
If you’re a Division 5 Accumulation member, you have access to a risk profiler on our secure website where you can find out how comfortable you really are with financial risk. If you’re a member in one of the defined benefit schemes, you can access the risk profiler over the phone with our Helpline team on 1300 307 844.
You also need to consider how long you have before you’ll be drawing on your retirement savings.
Someone who has a longer timeframe until retirement has a longer time to recover from the market dips we mentioned. If you’re planning to retire next year, for example, you need to think about recovering from any financial storms between now and then.
It doesn’t necessarily mean that a low risk/low return option is the only way for you if you’re nearing retirement, or that a high risk/high return option is the only way for you if you have 40 years until retirement, but knowing your timeframe is really important and can impact what’s right for you right now.
Rethinking your options
As important as it is to make sure you’re in the right investment option or options for you for now, it’s also really important to revisit your options from time to time.
Your attitude to risk can change over time and you may become much more conservative in your choices, or you may become much more willing to take risks as you age and your financial situation changes.
We can’t stress how important it is to check in every so often to make sure that you haven’t left your money to languish in a lower returning option if you are happy now to wear the risks of a higher risk option. Or equally, that you haven’t ‘set-and-forget’ your super in a higher risk option that doesn’t suit you anymore.
By default, your super was invested in the Balanced Growth option when you joined, but there are other options available to you.
If you’re in the accumulation scheme, there are 4 great options to choose from:
- High Growth, potentially giving you a higher return but at a higher risk
- Balanced Growth, giving you reasonably high returns at a reasonably high risk
- Conservative Growth, giving you moderately low returns, but at a lower risk
- Cash, which is designed to give you the lowest rate of return, at the lowest risk
If you’re in one of the older defined benefit schemes, you have all 4 options above to choose from for your Additional Voluntary Contributions and your rollovers from other funds. Division 2 or Division 4 members have access to the Balanced Growth or Cash options for your member and employer contributions.
If you are a Pension scheme member, your member and employer contributions will be invested in the Balanced Growth option.
You can view the past performance of the options on our website and see the expected returns and objectives for the different options. Of course, past performance is no guarantee of future performance (we had to say it, right?).
Still not sure?
If you are still unsure about what to do, call our Helpline on 1300 307 844 or speak to your financial adviser for a more detailed discussion about your needs and aims.