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Summary of Hostplus Retirement Income Strategy

Download a copy of the summary

While superannuation has been an essential part of Australia’s retirement income system, especially for the past 30 years after the introduction of the Superannuation Guarantee for the majority of workers, the focus over this time has largely been on accumulation and growth (pre-retirement).

However, with the maturity of the superannuation system and the increasing role superannuation now plays in the makeup of Australians’ retirement incomes, the Federal Government recently introduced a Retirement Income Covenant (RIC), which comes into force on 1 July 2022. The RIC requires super funds to develop a Retirement Income Strategy (RIS) with a view to improving the retirement outcomes for their members.

Hostplus has developed its RIS, which outlines how the fund intends to assist members who are retired, or approaching retirement, achieve and balance the following key retirement income objectives:

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        Key risks to the sustainability and stability of expected retirement income.


Longevity risks – the risk that you may outlive your retirement savings.
Investment risks – the risk of variable or negative investment returns and that the order and timing of your investment returns are unfavourable, resulting in less money for your retirement.
Inflation risks – the risk that cost-of-living increases outpace the performance of your retirement savings, reducing your purchasing power and standard of living over time.

Hostplus' Retirement Income Strategy

Each Hostplus member is likely to have their own distinctive retirement goals and preferences, including how they intend to achieve their retirement income objectives and outcomes. Hostplus’ RIS aims to leverage and utilise its products, member education and support tools and financial planning and advice solutions to assist members in planning for and optimising their retirement outcomes.

Our strategy is based around a holistic, three-pillar approach, which integrates with the Age Pension and other sources of retirement income to help members maximise their retirement income, manage risks, and provide flexible access to their retirement savings.

To learn more about each of these three pillars, please view the animation and solutions below:

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If you’re retired

Hostplus Pension account

The Hostplus Pension account is our core retirement income product with the following features:

  • Regular pension payments – decide how much and how often you want to receive a regular income. Payments can be used to supplement a full or partial Age Pension or to self-fund your retirement.
  • Flexible withdrawals – take out extra money when required to meet unexpected costs or large expenses.
  • Comprehensive choice of investments – tailor your investment approach through a wide variety of investment options.
  • Choiceplus investment option – actively manage your retirement investment strategy through this investment option which offers greater flexibility and choice. Learn more here
  • CPIplus investment option – give yourself greater certainty in retirement through this investment option which aims to deliver steady and reliable returns above the level of inflation (rises in the cost of living as measured by the Consumer Price Index, or CPI). Learn more here

If you’re approaching retirement

Hostplus super account

With flexible investment and insurance options and a low administration fee, a Hostplus super account can help you grow your retirement savings if you’ve still got some work ahead of you.

Hostplus Transition to Retirement account

If you’re not ready to fully retire and you’ve reached your preservation age (the age at which you can access your super), our Transition to Retirement (TTR) account can help. It gives you restricted access to your super via regular pension payments. By putting your savings into a TTR account and drawing an income, you can:

  • reduce your working hours, while still contributing to super and receiving the same level of take-home pay
  • make additional before-tax super contributions (up to the concessional contributions cap) from your current wage and reduce the amount of tax you pay without a loss of income.
     

To help our members who are approaching retirement or who have already retired, we provide a range of member education and support services. Below is an overview of the current services offered:

Retirement projection calculator1

Use our calculator to estimate your income in retirement and how long your super could last. It can also help you understand how factors like super contributions and investment choice can impact your future.

 

The calculator is simple to use – there’s even a short instruction video to help you get the most out of it.

 

Try the retirement projection calculator

 

Hostplus website

A great place to start learning about your retirement options and the services we offer.

Hostplus mobile app

Manage your super easily and conveniently. Check your account balance and transaction history, see how your super’s growing, update your details, and more.
 

View download instructions here

 

Online webinars

Learn more about retirement planning, including super in retirement, maximising your Centrelink entitlements, and more.

 

See the calendar of events here

Ongoing communications

We’ll keep you updated on the tools and services we offer, so you can get the most out of your retirement.

 

How do you decide what investment options or retirement strategies might be right for you? Planning for your retirement can be daunting, but you don’t have to do it alone. We’re here to help take the stress out of the unknown. Our experienced and licensed financial planners can give you the confidence, guidance, and clarity you need to set up, and meet, your retirement objectives.

We offer the following options to ensure you get the right level of advice to suit you:

Online DIY personal advice

Our SuperAdviser tool can be accessed by logging in to Member Online. It’s easy to use and provides simple personal advice that can be implemented directly through your online account.

Phone-based advice about your super

Our licensed superannuation advisers can provide advice specific to your super with Hostplus, including investment options, retirement projections and insurance. Best of all, this type of advice is available at no extra cost to you.

Find out more here

Specialist retirement planning advice

Our expert financial planners, dedicated to helping you achieve your retirement goals, including making sure you have enough for retirement, and that you're making the most of your super. This service is offered in person or via video link and covers all aspects of your financial journey.

Find out more here

The role of the Age Pension

The Age Pension is intended to provide income support to older Australians who need it, while encouraging pensioners to maximise their overall incomes.

Although not everyone will be eligible to receive the Age Pension (as there are age, residency, and assets and income test requirements), most Australians will receive either a partial or full pension at some stage of their life. As such, our retirement income strategy is designed to work alongside your Age Pension entitlement.

To understand how age, residency, and assets and income test requirements apply to you, visit Centrelink (Services Australia).

The table below illustrates how a combination of a Hostplus Pension account and the Age Pension can help members maximise their retirement income, manage risks, and provide flexible access to their retirement savings.

Retirement income option Maximising Income Managing retirement risks Flexibility
Longevity Investment Inflation
Hostplus Pension Choice of drawdown strategy No protection Wide range of investment options including Choiceplus and CPIplus
  • Ability to index pension payments in line with CPI or fixed rate
  • Inflation protection via CPIplus
High flexibility
Age Pension N/A Paid to end of life Given the asset test, payments may increase when other assets fall in value Indexed No flexibility

 

How Hostplus' Retirement Income Strategy can help you

Our strategy has been designed to provide tailored guidance and support to members approaching, entering, or in retirement.

Click on the heading below that best describes your situation to find out how the three pillars of our strategy could help you.

You're approaching retirement

Product solutions

Hostplus super account

With flexible investment and insurance options and a low administration fee, a Hostplus super account can help you grow your retirement savings if you’ve still got some work ahead of you.

Hostplus Transition to Retirement account

If you’re not quite ready to fully retire and you’re over the preservation age (the age at which you can access your super), our Transition to Retirement (TTR) account can help. It gives you restricted access to your super via regular pension payments. By putting your savings into a TTR account and drawing an income, you can:

  • Reduce your working hours, while still contributing to super and receiving the same level of take-home pay
  • Make additional before-tax super contributions (up to the concessional contributions cap) from your current wage and reduce the amount of tax you pay without a loss of income. 

Member education and support

Retirement projection calculator1

Use our calculator to estimate your income in retirement and how long your super could last. It can also help you understand how factors like super contributions and investment choice can impact your future.

The calculator is simple to use – there’s even a short instruction video to help you get the most out of it.

 

Try the retirement projection calculator

Online webinars

Find out how to save tax, boost your super, and navigate your future retirement.

 

See the calendar of events here.

Hostplus mobile app

Manage your super easily and conveniently. Check your account balance and transaction history, see how your super’s growing, update your details, and more.
 

View download instructions here

Financial planning and advice

While you’re still in the workforce, there’s no better time to start planning your future. We offer the following options to ensure you get the right level of advice to suit you:

 

Online DIY personal advice

Our SuperAdviser tool can be accessed by logging in to Member Online. It’s easy to use and provides simple personal advice that can be implemented directly through your online account.

 

Try Super Adviser

 

Phone-based advice about your super

 Our licensed superannuation advisers can provide advice specific to your super with Hostplus, including investment options, retirement projections and insurance. Best of all, this type of advice is available at no extra cost to you.

 

Find out more here

 

Specialist retirement planning advice

Our expert financial planners, dedicated to helping you achieve retirement, including making sure you have enough for retirement, and that you're making most of your super. This service is offered in person or via video link and covers all aspects of your financial journey.

 

Find out more here

You're retired

You’re in this group if you need to self-fund your retirement until you reach the eligibility age for the Age Pension.

Product solutions

 A Hostplus Pension account can help you maximise your retirement income, manage risk, and give you flexible access to your savings.

Your retirement income solution How you can maximise your income How this can manage retirement risks Flexibility
Longevity Investment Inflation
Hostplus Pension Choice of pension payment strategy No inbuilt protection until Age Pension commences Wide range of investment options including Choiceplus and CPIplus
  • Ability to index pension payments in line with CPI or fixed rate
  • Inflation protection via CPIplus
High flexibility - choice of pension payments and ability to make withdrawals

Member education and support

 

Online webinars

Learn more about retirement planning, including super in retirement, maximising your Centrelink entitlements, and more.

 

See the calendar of events here

 

Retirement projection calculator1

Use our calculator to estimate your income in retirement and how long your super could last. It can also help you understand how factors like super contributions and investment choice can impact your future and can estimate your future Age Pension entitlements

 

The calculator is simple to use – there’s even a short instruction video to help you get the most out of it

 

Try the retirement projection calculator

Financial planning and advice

 

Specialist retirement planning advice

Our expert financial planners, dedicated to helping you achieve your retirement goals, including making sure you have enough for retirement, and you're making most of your super. This service is offered in person or via video link. and covers all aspects of your financial journey.

 


Find out more here

You’re in this group if you meet the age and residency requirements and have a modest amount of assets and income to qualify for a full Age Pension.

Product solutions

A Hostplus Pension account can help you maximise your retirement income, manage risk, and give you flexible access to your savings.

Your retirement income solution How you can maximise your income How this can manage retirement risks Flexibility
Longevity Investment Inflation
Full Age Pension and Hostplus Pension Choice of pension payment Protection via the Age Pension Wide range of investment options including Choiceplus and CPIplus
  • Ability to index pension payments in line with CPI or fixed rate
  • Inflation protection via CPIplus
High flexibility - choice of pension payments and ability to make withdrawals

Member education and support

Online webinars

Learn how to navigate retirement, maximise Centrelink, and more.
 

See the calendar of events here

Retirement projection calculator1

Use our calculator to estimate your income in retirement and how long your super could last. It can also help you understand how factors like super contributions and investment choice can impact your future and can also estimate potential future Age Pension.

 

The calculator is simple to use – there’s even a short instruction video to help you get the most out of it.

 

Try the retirement projection calculator

Ongoing personalised communication

We’ll regularly update you on any changes to super that may impact you, to help you make the most out of your retirement savings.

Financial planning and advice

 

Specialist retirement planning advice

Our expert financial planners, dedicated to helping you achieve your retirement goals, including making sure you have enough for retirement and that you're making most of your super and any future Centrelink entitlements. This service is offered in person or via video link and covers all aspects of your financial journey.

 


Find out more here

 

You’re in this group if you meet the age and residency requirements and have a moderate amount of assets and income to qualify for a partial Age Pension. A full Age Pension may be available later in retirement.

Product solutions

A Hostplus Pension account can help you maximise your retirement income, manage risk, and give you flexible access to your savings.

Your retirement income solution How you can maximise your income How this can manage retirement risks Flexibility
Longevity Investment Inflation
Partial Age Pension and Hostplus Pension Choice of pension payments Protection via the Age Pension Wide range of investment options including Choiceplus and CPIplus Ability to index pension payments in line with CPI or fixed rate
Inflation protection via CPIplus
High flexibility - choice of pension payments and ability to make withdrawals

Member education and support

Online webinars

Learn how to navigate retirement, maximise Centrelink, and more.
 

See the calendar of events here

Retirement projection calculator 1

Depending on the information you provide, our calculator can estimate how long your super could last as well as your future Age Pension entitlements. See how the Age Pension could work with your super over the long term and how factors like investment choice can impact your future.

Ongoing personalised communication

We’ll regularly update you on any changes to super that may impact you, to help you make the most out of your retirement savings.

Financial planning and advice

 

Specialist retirement planning advice

Our expert financial planners, dedicated to helping you achieve your retirement goals, including making sure you have enough for retirement, and you're making most of your super. This service is offered in person or via video link and covers all aspects of your financial journey.

 


Find out more here

 

You're in this group if you've reached your Age Pension age but do not meet the Age Pension residency requirements or exceed the assets and/or income thresholds for the Age Pension. A partial Age Pension may be available later in retirement.

Product solutions

A Hostplus Pension account can help you maximise your retirement income, manage risk, and give you flexible access to your savings.

Your retirement income solution How you can maximise your income How this can manage retirement risks Flexibility
Longevity Investment Inflation
Hostplus Pension Choice of pension payment strategy No inbuilt protection unless you become eligible for a partial Age Pension

Ability to manage longevity via considered investment and drawdown strategies
Wide range of investment options including Choiceplus and CPIplus
  • Ability to index pension payments in line with CPI or fixed rate
  • Inflation protection via CPIplus
High flexibility - choice of pension payments and ability to make withdrawals

Member education and support

 

Online webinars

Learn more about navigating retirement, aged care (for yourself or loved ones), and more.

 

See the calendar of events here

Retirement projection calculator1

Use our calculator to estimate your income in retirement and how long your super could last. It can also help you understand how factors like super contributions and investment choice can impact your future and estimate future Age Pension entitlements.

 

The calculator is simple to use – there’s even a short instruction video to help you get the most out of it.

 

Try the retirement projection calculator

 

Ongoing personalised communication

We’ll regularly update you on any changes to super that may impact you, to help you make the most out of your retirement savings.

 

 

Specialist retirement planning advice

Our expert financial planners, dedicated to helping you achieve your retirement goals, including making sure you have enough for retirement, and you're making most of your super. This service is offered in person or via video link and covers all aspects of your financial journey.

 


Find out more here

 

 

You're in this group if you're 65 or over, have a Hostplus super account, and haven't received a super contribution for 12 months or more.

Product solutions

If you’re 65 or over and retired, a Hostplus Pension account can help you maximise your retirement income, manage risk, and give you flexible access to your savings. It can also help you save tax, as investment earnings in a pension account are received tax-free. Speak with one of our specialist retirement planning advisers who can help you decide if this is the right option for you, or read the Hostplus Pension Guide.

Hostplus super account

With flexible investment and insurance options and a low administration fee, a Hostplus super account can help you grow your retirement savings.

Member education and support

Online webinars

Learn about navigating retirement, Centrelink entitlements, and more.
 

See the calendar of events here

Retirement projection calculator1

Use our calculator to estimate your income in retirement and how long your super could last. It can also help you understand how factors like super contributions and investment choice can impact your future.

 

The calculator is simple to use – there’s even a short instruction video to help you get the most out of it.

 

Try the retirement projection calculator

Hostplus mobile app

Manage your super easily and conveniently. Check your account balance and transaction history, see how your super’s growing, update your details, and more.
 

View download instructions here

Financial planning and advice

 

Specialist retirement planning advice

Our expert financial planner, dedicated to helping you achieve your retirement goals, including making sure you have enough for retirement, and you're making most of your super. This service is offered in person or via video link and covers all aspects of your financial journey. 


Find out more here

 

What are we doing next?

Our Retirement Income Strategy will evolve as we better understand our member needs and preferences, which will help us enhance and tailor our products, member education and support tools, and financial planning and advice solutions.

In the 2022-23 financial year we intend to:

  • undertake further research to better understand our members’ needs and the key factors influencing their retirement decisions
  • add retirement income projections to member statements to give them an understanding of their projected retirement income to help them plan and prepare for retirement
  • update the Hostplus app to provide access to pension accounts
  • introduce information packs to provide personalised guidance. This could include detailed projections, case studies and fact sheets to assist retirement planning
  • investigating the use of lifetime income products to help manage longevity risk
  • determining the suitability of products and income drawdown defaults that further improve member retirement outcomes
  • identify opportunities to provide personalised and cost-effective retirement advice and support to suit varying member needs

We’ll continuously monitor our strategy and the retirement outcomes it generates, while also undertaking a comprehensive formal review of the strategy every three years.

How to contact us

We’re striving to better understand your retirement needs and objectives so we can keep developing products and solutions to help you meet them. If you have any questions or feedback on our retirement income strategy, you can reach out to us using the online form
 

1 Results are based on certain assumptions that may not reflect current or future trends and therefore do not represent actual entitlements or benefits and should not be relied upon for the purpose of making decisions in relation to a financial product. Before making any financial decisions, you should consider obtaining professional financial advice from a licenced financial adviser. Results are expressed in today's dollars, allowing for future assumed wage inflation.

This website is issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68657495890198. Hostplus Self-Managed Invest (SMI) is issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Pooled Superannuation Trust (PST) ABN 13 140 019 340. It contains general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS) or Hostplus SMI PDS before making a decision about Hostplus. For a description of the target market, please read the Target Market Determination (TMD), available at hostplus.com.au. You can view detailed disclaimers here. Hostplus has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL 232514 to facilitate the provision of personal financial advice to members of Hostplus. Advice is provided by financial planners who are Authorised Representatives of IFS. Fees may apply for Comprehensive Financial Advice, further information about the cost of comprehensive advice is set out in the relevant IFS Financial Services Guide, a copy of which is available from your financial planner. Hostplus has engaged Link Advice Pty Ltd ABN 36 105 811 836, ASFL 258145 to facilitate the provision of limited personal financial advice to members of Hostplus via the web-based product Super Adviser.