CPIplus sets a predetermined return calculated using a formula of CPI + ‘n’ where:
Hostplus
Content Team
5 min read
Updated 26 Mar 2026
Advisers know that finding the right balance between risk and return in retirement is one way to helping their clients achieve their financial goals.
Their clients may want to grow their funds through investment returns, but may be uncertain about taking on too much risk. At the same time, they may want access to their money when it suits them.
Based on Hostplus’ research1, retirees are generally looking for four elements to meet their core retirement needs:
- independence;
- certainty;
- self-reliance; and
- flexibility.
But for many, juggling these different retirement needs can be a challenge.
Introducing CPIplus
CPIplus is an innovative pension investment option that aims to provide returns that are more consistent and less volatile than growth assets such as shares.
At the same time, because the CPIplus return formula is linked to the Consumer Price Index (CPI), it aims to deliver a return that helps supports your clients' income needs throughout their retirement.
It’s not the same as a lifetime annuity or a fixed term deposit. CPIplus puts your clients in control by allowing them ready access to their money if they need it at short notice.
How does CPIplus work?
CPIplus uses the average of the CPI rates for the previous two quarters to determine the applicable CPI rate included in the formula.
This is a predetermined level of return in addition to the CPI figure and is calculated and set by Hostplus ahead of time (currently every 12 months).2
For the current return period (1 July 2023 to 30 June 2024), ‘n’ is set at 2%.
By setting a return in addition to CPI, CPIplus aims to provide your clients’ with returns that are above the level of inflation. This minimises the impact of inflation on the real value of their investment returns.
Additionally, the CPIplus return formula also provides for a minimum daily return floor of zero, meaning that irrespective of movements in CPI, the daily return of CPIplus will not be negative, even if inflation is.
What are the benefits?
Peace of mind
A lower-risk investment option that aims to provide a predetermined and more consistent return for your clients’ retirement.
Control
Investors in CPIplus maintain the flexibility to access their funds whenever they need, switch in and out of the option. This provides them with more confidence to consider investing some or all their pension in CPIplus.
Safety Net
An option that aims to deliver a consistent annual return above inflation. We’ve set a lower limit for returns, which is zero percent. In other words, returns won’t be lower than zero.
Trust
Built by Hostplus, one of Australia’s leading industry super funds, who’ve been helping members save for retirement for over 30 years.
Where can you find the current CPIplus rate?
Up-to-date information on the current CPIplus rate and other important details can be found here.
Hostplus will inform invested members are informed of any changes to the CPIplus rate at least 30 days before the end of each return period (usually 30 days before 30 June each year).3
How is CPIplus invested?
The assets of CPIplus are invested in the same asset pool as our Balanced option
However, any returns in CPIplus are achieved through a mechanism whereby the returns of the option are set in advance for a specified return period (currently a year), according to the predetermined return formula (CPI + ‘n’).
This means that its returns, for any return period, are not measured by the return on the underlying investments of the option. While the returns of the CPIplus option are predetermined, the Balanced Option receives the benefit of any excess market returns generated or makes up any shortfalls.
It’s easy to establish
If your client is new to Hostplus, subject to eligibility requirements, you can help them open a new pension account and, once established, maintain access to their account information via Hostplus Adviser Online.
If your client already has a Hostplus Pension account, you can help them switch some – or all – of their balance into CPIplus4 by completing this form.
If you are registered with Hostplus5, you may also be able to deduct some or all of your advice fees from your clients’ Hostplus account.
1. Source: Member research commissioned by Hostplus and conducted by Forethought on 'Understanding the Retirement Journey', Dec 2020
2. Although ‘n’ is set annually under the return formula, Hostplus reserves the right to shorten the return period or discontinue offering the predetermined rate. Hostplus may also adjust the rate of return with at least 30 days’ notice.
3. Although ‘n’ is typically set annually, Hostplus reserves the right to shorten the return period or discontinue offering the predetermined rate. Hostplus may also adjust the rate of return with at least 30 days’ notice.
4. CPIplus is only available to Hostplus Account-Based Pension members and not available to members with a Hostplus Transition to Retirement account
5. Subject to Hostplus Advice Fee rules: hostplus.com.au/content/dam/hostplus-program/site/resources/advisers/Hostplus-Fact-Sheet-Charging-an-Advice-Fee.pdf