Cbus Super’s Retirement Strategy summary for members of Cbus and the Media Super division is now available. It addresses the requirements of the Retirement Income Covenant (RIC) and builds on Cbus’ existing work to help members prepare for and then enjoy their retirement. The Cbus strategy is a holistic approach to engagement, service, advice and product for our diverse membership and their varying needs.
In developing the strategy deep cohort analysis was conducted of the Fund’s membership. The strategy has been prepared using the most up-to-date information and data available. This analysis highlighted a number of specific segments – or cohorts – of membership where Cbus could tailor plans to provide the best information and advice for each. The largest cohorts were members who retired early and involuntarily, and those who have modest retirement savings – member cohorts who require a special approach on their transition to retirement.
Broken work patterns and unpaid super are a common experience – resulting in less consistent super contributions and early, unplanned transitions to retirement often due to health issues and physical degeneration. Many members in our Media Super division also experience similar sessional work patterns and they are likely to have lower superannuation savings at retirement as a result.
As part of the retirement strategy to be delivered over the next three years, Cbus has flagged the development of a longevity product for a cohort who have more super and other assets. Our research has demonstrated these households may benefit from higher, more consistent income over retirement with potential for a boost in age pension entitlement.
Jon Sedawie, Cbus Head of Retirement said, “Developing this strategy is an opportunity to strive further in improving the transition of accumulation members into retirement, over and above addressing the requirements of the covenant. The strategy is underpinned by deep research and data-driven insights of members’ circumstances and needs.
“Our members have a diverse range of retirement needs and the strategy caters to this diversity. To meet these needs, our strategy is not just about product, but also covers improved member guidance, education and referrals. Cbus has already been offering leading products. The Fund has won the Money magazine Pension Fund of the Year for the past three years, we offer an award-winning Super Income Stream (SIS) for retired members with as little as $10,000 to invest.
“For our largest cohorts, a big factor in being unprepared for the logistics of their retirement can be the shock of stopping work when the catalyst is an unexpected and serious health-related event. Cbus will continue to advocate on behalf of those who find themselves retiring early and involuntarily, a group which the recent Retirement Income Review called out as warranting some additional system support.
“The strategy responds to these challenges and also includes several retirement initiatives that will enable Cbus to provide a superior retirement experience to members. This includes testing longevity products as a holistic retirement solution for some members. We want to take away anxiety around drawing down retirement savings, with the aim of providing peace-of-mind for members that they, together with their partner, have an income stream for life.”
Cbus CEO Justin Arter said, “It is timely that today marks 30 years since the compulsory Superannuation Guarantee was introduced and it is also 38 years since Cbus was created, the Fund being a catalyst for the system we have today. In this relatively short time Australia has created a world leading superannuation system, a system which has enhanced the retirement savings of Cbus members.
“In the next decade there will be an increase in members retiring and drawing on their savings and an increased focus on their needs. Crucial to the future and growth will be delivering more for members at retirement. Our retirement income strategy will play a key role in that delivery.
“What sets Cbus aside is catering for a diverse membership. Much of the discussion around the Retirement Income Covenant has been around balances not being drawn down.
“We have a very different story to tell, where many of our members in Cbus and the Media Super division have had broken work patterns and have a lower balance, while some other members have had opportunities to enhance their savings. Those at either end of the spectrum present challenges and opportunities for the fund. We’re excited about innovation in this space.”
A vitally important part of assisting our members prepare for retirement is providing Retirement Income Estimates. Cbus is pleased that the value of Retirement Income Estimates has been recognised by the Regulator who has issued an updated legislative instrument that provides funds with increased opportunities to provide retirement income estimates to more members and in a more timely fashion through their online accounts. A key ask of Cbus to assist our members was to be able to continue to include age pension amounts in retirement estimates, and we welcome having the discretion to now provide that information.
Cbus was one of the first funds providing retirement income estimates to members since conducting an initial pilot in 2013 and we have strongly advocated for enhancements to the way in which funds are able to provide them to members. Our members’ experience has shown retirement income estimates help them to take action to maximise their retirement outcomes and to reposition superannuation framing from ‘nest egg’ to retirement income.
Media enquiries: Elisabeth Bowdler, firstname.lastname@example.org, 0412 112 374
This information is about Cbus and doesn’t take into account your specific needs. You should look at your own financial position, objectives and requirements before making any financial decisions. Refer to Cbus Product Disclosure Statement, Target Market Determination and Financial Services Guide for more information. Call 1300 361 784 or visit cbussuper.com.au for a copy.
Cbus is the leading Industry Super Fund representing those that help shape Australia. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 788,000 members and we manage close to $66 billion of our members’ money (as at 30 April 2022). Our members include workers and retirees, their families and employers. As of April 2022, Media Super is now a division of Cbus, offering Media Super products. For more than 30 years Media Super has been the industry super fund for Print, Media, Entertainment and Arts, and broader creative industries. At 30 April 2022 Media Super provided superannuation accounts to 69,000 members and managed $6 billion.
Issued 1 July 2022, Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Trustee for Cbus ABN 75 493 363 262.