ADCU to pave the way for low fees on Super

Monday, 14 July, 2014

Industry research suggests Australians are paying up to three times more than they should for superannuation*. With fees averaging around AUD$726 per year^ it’s no wonder many Australian’s are looking to take extra precautions with their life savings as they approach retirement.

To address the exorbitant fees affecting retirement balances, Australian Defence Credit Union (ADCU) recently released two new low-fee investment options.

ADCU Capital Guaranteed Super and ADCU Capital Guaranteed Pension are specifically designed for those who are looking to protect their retirement lifestyle with a low-risk, capital guaranteed option for their life savings.

They act as a strong alternative for consumers searching for accounts with no investment, entry or ongoing fees.

John Ford, Chief Executive Officer of ADCU, said “We’ve taken on board feedback from those about to retire. They don’t want to risk their retirement nest egg nor do they want to see fees erode their effective rate of return”.

When members invest their retirement savings, their money is placed in a low-risk, cash based account that is guaranteed against negative returns. Members can choose to watch their nest egg grow by allocating their funds in competitively priced variable or fixed term deposit options.

Those still employed can also contribute to their account with personal or employer contributions. Once members have reached pension age they can use the Pension product to manage their income stream in draw-down phases with their choice of amount and frequency.

“ADCU’s Capital Guaranteed Super and Pension offers the ability to lock in your rate of return in advance via our fixed rate option – thereby providing a secure and predictable income stream. We see this service extension as an important step to assisting retired members with a dignified and well earned retirement,” said Ford.

Features and benefits:

·         No investment, entry or ongoing fees

·         Capital guaranteed, no risk of negative returns

·         View account balances in online banking

·         Choice of fixed or variable rates of return

·         Tax free income for members over 60 years

·         Covered under the Australian Government ‘s Financial Claims Scheme

More information on ADCU Capital Guaranteed Super and Pension is available at www.adcu.com.au/retirement.

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Important information

These products are issued by Australian Defence Credit Union Limited ABN 48 087 649 741 AFSL No. 237 988.

Any advice here does not take into account your objectives, financial situation or needs, which you should consider before acting on any of our recommendations. To decide whether this product is right for you, please carefully read the Product Disclosure Statement which is available at www.adcu.com.au or in branch.

^Super Ratings, 2014, ‘MySuper sees fees reduce by 30% but not before Australians set to pay an extra $2 billion due to delays’, Media Release of 5 February 2014 http://www.superratings.com.au/media/mediarelease/05022014

*Rice Warner, 2014, ‘FSC Superannuation Fees Report 2013’ http://ricewarner.com/media/96729/Rpt-FSC-Superannuation-Fees-Report-2013-FINAL.pdf

 About ADCU:

ADCU has been providing banking services to the greater Defence community since 1959. They are an Authorised Deposit Taking Institution with branches on all major Australian Defence bases, over 47,000 members and funds under management in excess of $1.03 Billion. ADCU operates in accordance with the Banking Act (1959) and is regulated by the Australian Prudential Regulation Authority. ADCU takes pride in their reputation for being helpful, reliable, professional and most of all for understanding the needs of our members. To find out more about ADCU visit www.adcu.com.au.