ANZ Smart Choice Super and Pension| Super Fund Review
This low cost retail super fund offers a mix of investments based on your age, which are adjusted as you get older.
Opening a Smart Choice Super and Pension retail super fund with ANZ Wealth is a low cost way to save for your retirement, and offers competitive administration and investment fees.
There are two main ways you can invest in the fund. The first is through the Lifestage option, which is ANZ Smart Choice Super's MySuper complaint product. With this option, a mix of investments is selected for you based on your age, and is adjusted as you become older. The second option is to choose your own investment mix from a carefully selected list. You can keep track of your super either from your desktop or via ANZ’s goMoney or Grow smartphone apps.
Read on to learn more about the ways in which you can invest.
These are just some of the key features offered by ANZ smart Choice Super:
- Roll over your existing super into your Smart Choice fund via online transfer
- Choose between two main ways to invest
- Death cover automatically included
- Apply online in five minutes
- Keep track of your super on a smartphone app
ANZ Smart Choice Super and Pension is designed to be a “fund for life”, allowing you to switch between three different accounts depending on your stage of life:
- An ANZ Smart Choice Super account, for when you’re in the middle of your working life.
- An ANZ Smart Choice Transition to Retirement account, for when you’re preparing for retirement (between 55 and 65 years old).
- An ANZ Smart Choice Pension, for when you have retired and want to draw income from your super.
There are two ways you can invest depending on how hands-on you want to be managing your super.
Option 1: Lifestage investments
This is the default investment option if you prefer to leave your investment choices up to ANZ experts. They select a mix of investments based on your age from a variety of asset classes, and adjust them as you grow older. For instance, if you join the fund early on in your working life, your super will be invested mainly in growth assets such as shares, which are designed to provide potentially higher returns but with greater risk. As you approach retirement, the mix will automatically be adjusted, with a higher allocation towards less risky investments such as fixed interest, bonds and cash. The following table highlights each Lifestage investment option, its risk level, past performance and asset allocation.
|Lifestage option||Risk level||Performance over past 3 years*||Asset allocation*|
|ANZ Smart Choice Super 1940s||Medium||3.90% p.a.|
|ANZ Smart Choice Super 1950s||Medium to high||5.37% p.a.|
|ANZ Smart Choice Super 1960s||High||6.59% p.a.|
|ANZ Smart Choice Super 1970s||High||7.49% p.a.|
|ANZ Smart Choice Super 1980s||High||7.99% p.a.|
|ANZ Smart Choice Super 1990s||High||8.06% p.a.|
|ANZ Smart Choice Super 2000s||High||N/A (new product)|
Option 2: Choose your own investment
If you feel like you’re a little more experienced as an investor and would like to take a more “hands-on” approach, you are able to select your own investment mix. You can choose between eight options, as detailed below.
|Risk level||Performance over past 3 years*|
|Cash||Very low||1.77% p.a.|
|Moderate||Medium to high||5.58% p.a.|
|Australian equities||High||6.95% p.a.|
|International equities (hedged)||High||9.32% p.a.|
|Global property||High||8.50% p.a.|
|Global fixed interest||Medium||3.68% p.a.|
*The investment performance and asset allocation was correct as of September 2017; it may have changed slightly since this time. Past performance is not an indicator of future performance.
ANZ Smart Choice Super and Pension includes a number of fees and other costs relating to the administration of your account and management of your investments. These will be deducted from your superannuation. Other costs may be charged for additional services such as personal financial advice and insurance.
|Investment fee||0.50% p.a. of the balance for all investment options, except ANZ Smart Choice Cash which is 0%|
|Administration fee||$50 p.a., plus levies and expense recoveries of around 0.03% p.a, (estimated to be up to 0.08% p.a.) for each investment option|
|Buy-sell spread||0% to 0.10% of amounts invested in or withdrawn from an investment option|
|Other fees and costs||If you choose to add a personal advice service, fees can be charged on an ongoing basis or as a one-off payment. Insurance fees will apply if you have insurance cover. Fees for automatic death cover range between $44.31 p.a. to $1,442.43 p.a.|
|Indirect cost ratio (ICR)||Estimated to be less than 0.05% p.a.*|
*ICR correct as of 30 June 2017.
Example of annual fees and other costs for ANZ Smart Choice Super (based on a balance of $50,000)*
|Type of fees/ costs||Amount|
|Investment fees||$250 (0.50% p.a.)|
|Administration fee||$65 ($50 p.a. plus 0.03% p.a.)|
|Indirect costs||$15 (0.03% p.a.)|
|Total cost of product||$330|
*Fees are based on ANZ Smart Choice Super's Lifestage option. Additional fees may apply. For a more detailed breakdown of fees and charges, read the product disclosure statement on the appropriate provider's website.
If you sign up for the ANZ Smart Choice Super and Pension fund you will automatically receive death insurance, including terminal illness. This is subject to age eligibility, which is over 15 and under 65 years of age. Monthly fees will depend on your age, gender and whether or not you’re a smoker. Death cover ranges from $100,000 to $300,000. To apply you must be an Australian permanent resident, and be permanently living in Australia. You will also receive the option of adding Total and Permanent Disability (TPD) cover, which is calculated based on your age. In addition you can include income protection insurance. Applications for income protection and TPD insurance are assessed on an individual basis by the insurer and are subject to approval. If you’d like to increase your insurance cover, the maximum levels of you can apply for with ANZ are:
- Death cover: unlimited
- TPD cover: $3 million
- Income protection: the lesser of $30,000 per month or 75% of your monthly salary
If you do not require any insurance included with your super, you can opt out via ANZ Internet Banking or by calling its customer services, the day after your account is opened.
Pros and cons of ANZ Smart Choice Super
- Low fees
- Mobile app available
- Roll over existing super online
- No authorised MySuper product available
- No ethical investment option
How do I apply?
You can apply online for this super fund in less than five minutes by clicking the "Go to Site" button on this page. Make sure you have the following information to hand:
- Your personal details, including your name, address, date of birth and contact information.
- Your Tax File Number (TFN). You don’t have to provide your TFN, but if it is not on file, certain types of contributions won’t be accepted, and your benefit payments may be taxed at a higher rate.
- Details of your employer.
- Details of your ANZ bank account. If you don’t already have a transaction account with ANZ, you’ll need to apply for one before you open an ANZ Smart Choice Super account.
How do I manage my super?
You can access your account through ANZ Internet Banking or Mobile Banking. ANZ Wealth will inform you if it finds any other super in your name and will help you consolidate your accounts. Once you have logged in, you will be able to view your super balance, change your investment option, monitor you super performance, adjust your insurance, manage your beneficiary nomination and keep track of your contributions.