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Retirement income strategy

Summary of

Hostplus Retirement Income Strategy

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 came 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 key retirement income objectives:

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 in seeking to 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:

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.
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 about our Hostplus Pension account

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 calculator

Use our calculator to estimate your income in retirement¹ 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 projections calculator

Hostplus website

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

Learn about your retirement options

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.

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.

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.

Log into Member Online

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.

Call 1300 348 546

Specialist retirement planning advice

Our professional 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.

Book an appointment

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.² As such, the retirement income strategy is designed to work alongside your Age Pension scheme.

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.

2. Based on data from the Australian Bureau of Statistics and Department of Social Services.

Retirement income option	Maximising income	Managing retirement risks			Flexibility
Retirement income option	Maximising income	Longevity	Investment	Inflation	Flexibility
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