Your investment options
Take the time to really understand your investment options.
Everyone’s financial situation is different. That’s why it’s so important to understand how investment may impact your superannuation.
Fund rules differ
Select your fund to view the details
- CSS
- DFRDB
- MilitarySuper
- PSS
Is your super invested?
PSS is a Defined Benefit scheme, which means when you cease contributing to the scheme your total final benefit will be determined by a formula.
In PSS, your member and productivity contributions (the taxed part of your benefit) are invested and attract fund earnings.
While you are contributing to PSS, your total defined benefit is not affected by investment performance and fund earnings. However, they do affect the amount of tax you are required to pay when you claim your benefit.
As the taxed portion of your benefit is invested, it will be greater in times of higher investment performance, resulting in less tax payable on your benefit when you claim it.
In times of lower investment performance, the taxed portion will be less, resulting in more tax payable on your benefit when you claim it.
For more information visit About PSS.
If you have any accumulation amounts* paid into your PSS fund, these components are invested in the Balanced option.
*The accumulation portion of your account includes any amounts transferred from other super funds, super guarantee, low income contributions or any co-contribution payments.
More information can be found in the Investment options and risk publication.
Your investment options
If you are contributing to PSS, the accumulation portion of your super can only be invested in the Default Fund.
If you have left eligible employment and your PSS benefit is preserved in the fund, you can choose from the Default or Cash options.
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Default Balanced
The 'Balanced' option offered aims to balance savings between higher-growth opportunities and capital-preserving assets, while managing downside risk, with the goal of achieving a comfortable retirement for the longer term and a greater diversification of risk than most peers.
- Return objective: CPI +3.5% per year after fees and tax, over 10 years.
- Investment horizon (i.e. anticipated time to retirement): 10 years
- Life stage (general guidelines): Middle to late stage of working life, or pre-retirement.
- Estimated number of negative annual returns over a 20-year period: 4 to less than 6
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Cash
Our ‘Cash’ option focuses on preserving capital, so it’s expected to have lower risk and lower return compared to other options.
- Return objective: Bloomberg AusBond bank index rate of return, net of fees.
- Investment horizon (i.e. anticipated time to retirement): 1 year
- Life stage (general guidelines): Retired.
- Estimated number of negative annual returns over a 20-year period: Less than 0.5
Choosing your investment option
The decisions you make now about your super can help you reach your retirement goals. Take the time to understand your options, taking your personal objectives, financial situation and needs into account.
For example, you should consider the:
- impact investment performance has on your account
- amount of time your money will be invested before you need it for retirement
- level of risk and fluctuation in the value of your investment that you can tolerate.
Until you make a choice to switch your investment option, your super balance and contributions will be invested in the Balanced option.
Making a switch
If you are a Preserved or Associate member, you can switch your entire accumulation component (as long as it’s greater than $1,000) to the Cash or Balanced (default) option. Switches can only be made once a month, and no more than twice in a calendar year.
To switch:
- log into the CSC Navigator; or
- download, complete and return an Investment choice form.