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FAQs - Superannuation for Individuals

 

General info

Managing

Rollover

Life changes

Jargon

General things about superannuation

A.
MySuper is part of the Federal Government’s package of reforms, called StrongerSuper. It aims at making it easier and more transparent for people to compare default super products. All super Funds will need to offer a low cost product for members who haven’t made a choice.

A MySuper product must be authorised by APRA and include:

  • A single diversified investment option.
  • Same fees for all – fees must be the same for all members and there must be no entry fees, adviser fees or commissions.
  • Automatic Insurance – to ensure all members are protected, Automatic Death and Total & Permanent Disablement Insurance will be added to every account which members can tailor or opt-out completely.
Virgin Super Essentials is Virgin Super's MySuper offer.
A.
Some assets carry a higher form of investment risk than others. These are known as growth assets (e.g. shares and property). Those that are more stable are called defensive assets (e.g. cash and fixed interest).

If your super investment option carries a higher level of risk, it means you have the potential to see higher returns over the long term. In the short term, it's important to note that investment options with higher level of risk may experience negative returns - generally between one and five years.

Different types of risks applicable for super funds include:

Investment risk - All investments have the potential for fluctuating returns. Generally the higher the risk, the higher the return; but also the higher the probability of a negative return.
Market risk - This includes universal factors such as economic cycles, government policy, interest rates and inflation. Changes in these factors may result in dramatic increases or decreases in market valuations.
Currency risk - The risk that movements in foreign currency will affect the domestic value of overseas investments.
Legislative risk - Changes in legislation (such as super and taxation laws) may affect your investment.
Fund risk - The risk around your fund terminating, a risk we plan to keep to a minimum.
Liquidity risk - Liquidity risk is the extent to which investments can be converted into cash or other liquid securities without suffering a substantial reduction in value. This risk may arise in circumstances where in order to liquidate an asset quickly, it may be necessary to sell that asset at a substantial discount and so have a negative impact on the overall performance of the Fund.

For more information on risk and return, see our Product Disclosure Statement.

A.
There are five major asset classes with varying levels of risk and return.

Cash - Deposits in a bank, short-term loan securities and other similar investments. Lowest risk with a corresponding expectation of low returns.
Fixed interest - Usually a loan to a government or business where a fixed rate and loan length are agreed to in advance. Moderate risk investment. Less risky than property and shares over the short term, but also provides a lower level of return.
Property - An investment in property or developments, either directly or through property trusts. Moderate to high risk investment, due to reliance on economic factors, location and quality. Has a corresponding level of moderate to high returns.
Australian shares - Investments in Australian companies, usually listed on the Australian Stock Exchange (ASX). The expected return is high over the long term, but the risk is greater.
International shares - Investments in overseas companies. Similar to Australian shares. Generally the expected return is high over the long term, but the risk is greater.
A.
Index tracking is an investment strategy. We use this strategy for all our member investments.

The index bit
An index is a way of measuring the change in value of a market over time. Every asset class has its own index; for Australian shares it's the Australian All Ordinaries. You might notice on the evening news in the financial report, the person will usually say something like “The All Ordinaries initially fell by x% today before bouncing back to end the day higher”.

The tracking bit
You follow in the tracks of the index. A bit like a wildlife enthusiast, you follow at a distance, patiently observing market behaviour. When tracking, you're trying to perform as the index does. An active manager will actively attempt to out-perform the index and may come up short if investments behave differently than expected.

Putting the two together
You follow (track) an index. The index manager buys a sample of all the assets in the index. When the index goes up, your investment follows. And when it goes down, so does your investment. If you bought shares in all the companies in the Australian All Ordinaries, you'd be paying a lot of attention to those graphs on the news.

Drawing a conclusion
Basically, index tracking is a long-term strategy designed to remove the risk of picking poor investments in the short-term. It's about not relying on the luck or skill of a fund manager, therefore reducing a level of risk. It also means if a particular investment goes through the roof, you may miss out.
A.
Super has some super tax incentives.

Salary sacrifice - If your employer has a salary sacrifice option, seriously think about taking advantage of it.

It works like this:
  • You ask your employer to pay some of your gross salary into your super fund (the sacrifice).
  • Your super contributions are taxed at a rate of 15% (provided you don't exceed the concessional contributions cap).
  • By reducing the income you receive you may push yourself into a lower tax bracket and pay less tax again.

All of which means more money for you to invest.

A.
Super is a long-term investment, so try not to pay too much attention to short-term returns. Five years is considered a reasonable timeframe for assessing your super performance. Short-term gains are the realm of the experts - by the time you've reacted to one set of market conditions, they've already changed.

Chasing short-term gains
Frequently switching investment options based on short-term market performance could mean you actually lose out over time. Most people will only need to change their investment options when their circumstances change significantly, roughly two or three times in their lifetime. Just remember, what goes down, usually goes back up again.

Specific things about Virgin Super

A.
Macquarie Funds Management (Macquarie).
They're part of the Macquarie Bank Group, an Australian investment bank and one of Australia's top 50 listed companies. With over 35 years’ experience, Macquarie Bank operates in a range of investment banking, commercial banking and retail financial services markets in Australia and internationally.

Macquarie is a full service fund manager, with expertise in all major asset sectors and 25 years funds management experience. Macquarie's strong client focus, disciplined investment processes and dedication to innovation has established their reputation as one of Australia's leading fund managers. Since its establishment in 1969, Macquarie has been associated with a stream of major financial innovations, achieving significant benefits for clients and underpinning Macquarie's reputation as a market leader.
A.
This is Virgin Money's super fund option for people who prefer to have the bulk of the investment thinking left to the experts with the LifeStage Tracker® Balanced option. It is also our default investment option if you've been joined by your employer and haven't made any specific investment choice. Find out more about the Investment mix.
 
When you're ready to take more control, it's easy to switch to Super Plus.
A.
Virgin Super Plus is Virgin Money's super fund option for people who want to get more involved with their superannuation investment options. You’ll be able to choose from the more conservative cash/fixed interest asset classes through to the potentially riskier and higher-returning Australian and international shares, as well as from our LifeStage Tracker® options, which automatically adjust your asset mix as you get older. And you also have the flexibility of applying a different investment mix to your existing super balance and your future contributions.

You can click here to find out more about: Virgin Super Plus Investment options.

You can change your investment mix as often as you like or even switch to our Virgin Super Essentials product at any time.

 
A.
The fund
We look at the sell price of each asset class (Australian shares, International shares, Property and Cash & Fixed Interest) at the beginning and end of each quarter. The change in price is then shown as a percentage.

Your individual super
Your individual performance may vary from the overall performance for two reasons:
• the unit price changes daily, and so investment performance depends on the day you've invested
• you need to consider the impact of any additional contributions.
A.
There are few things to think about when comparing Virgin Super to the Index return.
  • index (market) returns are usually quoted over a full year or quarter.
  • index returns don't include buy/sell transaction costs or tax.
  • Virgin Super has been growing pretty quickly and there's sometimes a delay between receiving and investing dollars, technically known as interfunding.

 


A.

Effective from 1 July 2014, employers are required by law to pay 9.5% of your earnings into a super fund if you're earning over $450 a month. Super must be paid at least quarterly by your employer.

You can also make your own personal contributions. (Please see below question for more details).

Your employer would usually need to know the following information:

  • Our Fund name: Virgin Super
  • Our Australian Business Number (ABN): 88 436 608 094
  • Our Unique Superannuation Identifier (USI): 88 436 608 094 001
  • Your Virgin Super member number
A.

You can make personal contributions at any time. They’re also called non-concessional contributions because they’re made from your salary after income tax has been deducted.
Please note that when making personal contributions, you'll incur transaction costs.

To make a contribution via BPAY® you’ll need your Virgin Super BPAY® Customer Reference Number (CRN) and our BPAY® Biller Code. These details are available by logging in to your online super account or contacting our Customer Care Team.

A.
If your spouse has an assessable income of less than $13,800, then you can make super contributions on behalf of your spouse and you can claim a tax offset of up to $540. Please note that this does not mean splitting your own contributions between your spouse and yourself.
For the purposes of superannuation, a 'spouse' means:
  • a person you are married to
  • a person who you are in a relationship with and that relationship is registered under a state or territory law
  • a person, regardless of gender, living with you in a relationship as a couple (de facto spouse)
To receive a spouse contribution into your Virgin Super account you’ll need to provide your spouse with your Virgin Super BPAY® Customer Reference Number (CRN) and our BPAY® Biller Code. Note that your BPAY biller code for spousal contributions is different to your personal contributions biller code. These details are available by logging in to your online super account or contacting our Customer Care Team.
A.

Virgin Super Essentials (default) and Virgin Super Plus have different fees.

On Virgin Super Essentials you’ll be charged an:
  • Investment Fee of 0.30% of your account balance p.a.
  • Administration Fee of $78 p.a., plus 0.50% of your account balance p.a.

And on Virgin Super Plus you’ll be charged an:
  • Investment Fee of 0.30% of your account balance p.a.
  • Administration Fee of $78 p.a., plus a percentage based on your balance p.a. For the first $25,000 of your balance the percentage fee is 0.7%. On your balance from $25,001 to $250,000 the percentage fee applied is 0.5% p.a and on your balance above $250,001, the fee is 0.3% p.a. The longer you're with us, the more potential you have for a healthy super balance.

If you're working out how much maintaining your super is really going to cost you, remember to check out insurance fees if you have insurance cover or any specific 'activity' fees. For more details, you can check our Member guide.

A.
You can switch between our two products at any time:
  • Virgin Super Essentials: in which your current balance as well as your future contributions will be invested in our Life Stage Tracker® Balanced investment option
  • Virgin Super Plus: in which you’ll be able to choose from the more conservative cash/fixed interest asset classes through to the potentially riskier and higher-returning Australian and international shares, as well as from our LifeStage Tracker® options (Balanced and Aggressive), which automatically adjust your asset mix as you get older. You also have the flexibility of applying a different investment mix to your existing Super balance and your future contributions. When already in Virgin Super Plus, you can also change your investment mix between the four major asset classes and our LifeStage Tracker® options.
To switch:
You can log in to your online account and head to the 'Investments' section, then simply make your choice of investments.
A.
Virgin Super offers all members Automatic Insurance, designed to provide cover for Death and Total and Permanent Disablement (TPD).
  • Death cover: This provides a lump sum cash payment when you die or if you're diagnosed with a terminal illness.
  • Total and Permanent Disablement (TPD) cover: This provides a lump sum cash payment if you're permanently unable to work due to illness or injury. You can only take up TPD with death cover (i.e. not on a standalone basis).

Provided you are an Australian Resident (or hold an Australian Visa entitling you to residency or employment) aged between 15 and 64, you are automatically eligible for cover under this insurance option and do not need to provide us with any information about your medical history or lifestyle. We will determine the level of insurance cover that will automatically apply to you based on your age.

  • Income Protection (IP) cover: If you're unable to work after a 90-day waiting period, Income Protection Insurance pays up to 75% of your salary in monthly benefits.

If you wish, you can apply for a specific or higher amount of Death and/or TPD, as well as applying for Income Protection through our Tailored Insurance Application form.

Find out more information about Insurance.
A.
You need to make sure your superannuation fund isn't in the dark about your Tax File Number. Otherwise you could end up paying three times more tax on your super than everyone else. Here's what the Australian Government says will happen if you don’t supply your TFN to your super fund:
  • The money employers put into your super is taxed annually at 46.5% instead of 15%. That's a hefty amount of dollars you may not get to play with when you retire
  • Same goes if you're doing salary sacrifice contributions
  • You won't be able to make any after-tax super contributions
  • If you're eligible for the Australian Government co-contribution scheme, you might not see a cent of it
  • It could get a bit complicated if you're trying to track down lost super or roll over super from one fund to another
  • Your spouse won't be able to put money in your super (or vice versa)
  • You won't be able to take money out of your super account if your super fund doesn’t have your TFN

So make sure your super fund has your Tax File Number (otherwise, you could be taxed to the max). If you're already a Virgin Super member and you'd like to provide your TFN please call our Customer Care Team on 1300 652 770 or log into your online account and head to the ‘Personal details’ section.
If you don't know your TFN, ask the Australian Taxation Office -– call 13 28 61 (or talk to the nice HR person at work).


A.
Rolling over or consolidating is merging all your super accounts into one. Chances are if you've had more than one job, you'll have more than one super account. With multiple accounts you may be paying multiple fees which eat away at your retirement savings over time. Having all your money in one account means it reduces your fees so it can work harder for you over the long term and is easier for you to keep track of with just one statement each year. Remember: Some funds will charge you for leaving them - so if you're not sure, call them to clarify.
A.
If you're not a Virgin Super member yet, join online and you will receive details on how to Rollover to us in your Welcome email. To ensure there aren't any delays in processing your rollover, it will make it easier if you have any old member numbers and fund names from your old super accounts ready.

If you're already a Virgin Super member, you'll just need to log into your online account to request a rollover of your other super fund – no paperwork or hassle.
A.
Super becomes 'lost' when your fund can no longer contact you so they put you on the ATO's Lost Members Register. This could happen if:
  • Your account's been inactive for the last 12 months (inactive means no-one has put cash in it)
  • Your fund doesn't have your address or the mail they sent you has been returned twice.
A.

Head straight to the ATO’s SuperSeeker website to find any of your lost super. It only takes a minute and you just need your Tax File Number handy. (If you'd rather do it over the phone, call the ATO on 13 28 65).

If you're wondering what makes super ‘lost’, it's if there's a super account in your name that hasn't had any deposits made in the last 12 months, or if your super fund gets a couple of return-to-sender notices after they've tried to reach you. When this happens, the ATO is informed, and your 'lost' record is added to their register. You can rollover your lost super to your Virgin Super account by logging into your online account to request a rollover of your other super fund – no paperwork or hassle!

Things you should know

Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.


A.
It depends how old you are. It's a nice thought but you can't give up at 35 and start drawing on your super from a beach in Fiji. You must have reached the appropriate preservation age, between 55 and 60 depending on when you were born.

Date of birth Preservation age

Before 1 July 1960

55

1 July 1960 to 30 June 1961

56

1 July 1961 to 30 June 1962

57

1 July 1962 to 30 June 1963

58

1 July 1963 to 30 June 1964

59

After 1 July 1964

60

Apart from retirement you can access your retirement savings under the following circumstances (one is usually enough):
  • You leave gainful employment after age 60
  • You become totally and permanently disabled
  • You experience severe financial hardship and meet certain requirements
  • You have compassionate grounds for needing the money, as approved by the Australian Prudential Regulation Authority
  • If you are a temporary resident on a specified class of visa and you permanently depart Australia.
If you have any questions please give our Customer Care Team a call on 1300 652 770, 8am - 6pm (EST), weekdays.
A.
Australian Government rules prevent you from accessing your super benefit until you retire from the workforce and have reached your preservation age. You can access your super in the following circumstances (conditions may apply):

• You leave employment and your benefit is less than $200;
• You leave gainful employment after the preservation age (normally 60 but you can check out your preservation age at in our FAQ "When can I claim my super benefits?" above);
• You become totally and permanently disabled;
• You become terminally ill;
• You experience severe financial hardship and meet certain requirements;
• You have compassionate grounds for needing the money, as approved by the Australian Prudential Regulation Authority (APRA);
• You’re a temporary resident on a specified class of visa and you permanently depart Australia.

If you have any questions call our Customer Care Team on 1300 652 770, 8am - 6pm (EST), Monday-Friday.
A.
If you're a non-resident or an eligible temporary resident.
If you've come to Australia after 1 July 2002 on an eligible temporary resident's visa or if you're a non-resident leaving Australia permanently, you may be eligible for the Departing Australia Super Payment (DASP).
After leaving Australia, you can claim your super at any time from us or by contacting the Australian Taxation Office.
Main things you need to know:
  • To claim you must be either a non-resident or on an eligible temporary resident's visa.
  • You can't make a claim if you're an Australian citizen, permanent resident or New Zealander.
Claims are made as a cash lump sum and cannot be rolled into another overseas fund.

More things you need to know
The folks at the Australian Taxation Office have got all you need to know about their process, including online forms.
A.
Your super fund will pay a death benefit. This benefit includes the balance of your super account and any insurance benefits from paying an insurance premium to the fund. Death Benefits are usually paid to either:
  • Your dependants - spouse (including a de facto spouse or in some circumstances, a same sex partner), children, anyone else who is financially dependent on you, or anyone with whom you have an interdependent relationship; or
  • Your estate.
Can I nominate a beneficiary?
Yes, Virgin Super gives you three options, but there are legal bits and pieces you need to check.

The options
  • Binding nominations - you have the power to determine who should receive your death benefit. Download and complete the Binding Death Nomination Form. Please note you need to update your binding nomination every 3 years.
  • Non-binding nominations - the trustee still has the discretion to pay your money to one or more of your dependants or your legal personal representative. You can make a preferred nomination from your online account from the ‘Beneficiaries’ section.
  • No nomination - your benefit will be paid at the discretion of the Trustee to one or more of your dependants and/or legal representative.
It's best to download the Product Disclosure Statement if you're after the nuts and bolts on this. Regardless of which option you go with, the Trustee must ensure that your money is paid to your dependants or legal personal representative.
A.
You can probably still stay with Virgin Super if you are starting a new job. All you need to do is download and complete the Super Choice Form, give it to your new employer and they can start putting your Super Contributions into your Virgin Super account.

Things you should know
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
A.
You'll need to complete the Super Choice Form and pass it to your HR Department so they know you want your 9.5% employer contributions paid into your Virgin Super account.

Things you should know
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
A.
If you're doing casual work or taking on extra hours in your existing job, you may be able to boost your long-term savings by checking your eligibility for super contributions from your employer.
  • If you're over 18, and earn more than $450 before tax in a calendar month, your employer is usually required to pay super guarantee contributions on your behalf.
  • If you're under the age of 18 and work in excess of 30 hours a week, you may also be entitled to super contributions from your employer.
  • Even if you normally don't work more than 30 hours per week, extra shifts may entitle you to super payments. If you'd like to join Virgin Super start our online application
A.
If you've been retrenched or aren't working currently, you can still join Virgin Super and rollover to us. If you do start working again, you just need to let your new employer know that you prefer your Super Contributions to be paid into your Virgin Super account. All you need to do is download and complete the Super Choice Form, give it to your new employer and they will begin paying your contributions to us.

Things you should know
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider our Product Disclosure Statement which can be found on our website. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.
A.

If you are struggling financially or meet certain specified grounds for release, you may be able to access some or all of your super before retirement.
Financial grounds for release.
The trustee may release from your super one lump sum payment every twelve months if you can prove both of the below criteria:

  • You’ve been receiving a social security pension or benefit for the last 26 weeks.
  • You’re unable to meet “reasonable and immediate family expenses".

The payment will be no more than a gross amount of $10,000 and no less than $1,000 (or the balance of your benefit if it is less than $1,000).
Compassionate grounds for release.
Compassionate reasons include where you have expenses for yourself or a dependant when:

  • Medical treatment that is not available through the public health system is required for a life threatening illness or acute or chronic pain
  • Medical transport is required for the conditions above
  • Modifications to the family car or home are required to meet the needs of a disabled dependant
  • Palliative care or death related expenses (e.g. funeral) are required. You’ll need to apply to both Australian Prudential Regulation Authority and us by completing the necessary forms.
  • To prevent foreclosure of a mortgage on a family home.

If you have any questions please give our Customer Care Team a call on 1300 652 770, 8am - 6pm (EST), Monday-Friday.

Jargon unplugged

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Active manager
This type of investment manager will try to achieve a better return than the market by actively researching investments.  They use sophisticated research processes and tools to achieve this.

Additional employer contributions
Your employer must contribute 9.5% of your pre-tax earnings

to your super fund.  If they’re really nice, they might contribute even more, usually fixed as a percentage.

Annual income
Not just your salary, but all your income each year.  It includes pretty much anything capable of bringing you an income, such as: annual salary, bonuses, commissions, interest and dividends, rent money, divorce money and lottery winnings (but not your two-up winnings on Anzac Day).

APRA
What the Irish watch at the Opera House.  It also stands for Australian Prudential Regulation Authority.  These good people regulate the financial services industry.

ASFA
The Association of Superannuation Funds of Australia is a national, not for profit, non party political organisation that represents the interests of Australia's superannuation funds, their trustees and their members.

ASIC
These people are the Australian Securities and Investments Commission.  Their reason for existing is to protect you, the consumer, from dodgy practices by financial service companies.

Asset
Maybe Mum said your smile was your best asset, but in the world of money an asset is anything you can own that might turn into a future economic benefit.

Asset class
A way of grouping assets into classes based mostly on their level of risk and potential return.  The main ones are shares, property, cash and fixed interest.

Asset allocation
Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame.

ATO
The Australian Taxation Office.  A very helpful bunch who know an awful lot about tax.

Australian Stock Exchange (ASX)
The Australian Stock Exchange is the marketplace for shares, bonds, and other securities in Australia.

ASX also sets the exchange, regulates the brokers and provides fair rules for trade.  They monitor irregularities in trading prices and volumes, and have the power to suspend companies from being traded.

 

B

Basis point
Another way of measuring a performance return or a fee.  For example, fifteen basis points equals 0.15%

Bear market
People talk about a bear market when there’s a fall in prices with no expectation of recovery any time soon.  It's the opposite of a bull market.

Trivia -  the phrase comes from an old European proverb used by bearskin sellers:

'Don't sell the bear-skin before you have killed the bear’

Blue chip share
Share of a large company that consistently performs well over time. Great phrase to throw around in a loud voice at barbeques – "I'm looking mostly at blue chips" , most people will nod wisely and others will think "someone’s got to eat them".

Bond
A debt asset.  You (the lender) lend a borrower some money in exchange for a bond (proof of the loan).  The borrower uses your money and (subject to terms) pays you back the original amount and interest.

Borrower
An individual, company or government that borrows money from lenders.

Bottom up manager
Easy tiger!  Despite all sorts of possibilities this simply refers to a manager who researches individual companies in comparative isolation to the global picture.

Bull market
Not a place for buying and selling big daddy cows.  It’s a phrase used to describe a consistent upward trend over an extended period of time.

Bullish
The belief that the market will go up, many speculative punters will talk bullish, quite a lot of bullish, often the sort of bullish you should probably ignore.

Business day
If it's not a national public holiday or a weekend day, it's a business day.

 

C

Centrelink
Run under the very broad umbrella of the Department of Social Security, these guys set rules for means tests and pension thresholds.  
They regulate all pensions apart from Department of Veteran Affairs pensions.

Co-contribution
If you are eligible, the Federal Government will make a contribution known as a co-contribution to your super.  
This only happens under certain conditions to personal after-tax contributions.

Complying super fund
A regulated super fund qualifying for concession tax rates by meeting legal requirements.

Concessional contribution.
This is a contribution made from pre-tax income for which a tax deduction can be claimed.

Constitution
A document that states how a managed investment should be run.  It defines procedures for investing, applying and withdrawing investments.  It can be known as a trust deed.

Consumer price index (CPI)
The Australian Bureau of Statistics monitors the price of various defined consumer goods such as food, healthcare and fuel.  It's coyly referred to as a 'basket of goods". The "basket" is used to track inflation, so if lots of these go up, so does the inflation figure.

Contribution
A contribution is money paid into your super.

Contributions surcharge tax
An additional tax for higher income earners on all employer and salary sacrifice contributions. Not applicable to contributions made after 30 June 2005.

Contributions tax
A Federal Government tax on employer and salary sacrifice contributions.

 

D

Defensive asset
Generally, defensive assets have lower returns - but the returns are more stable due to lower risk.  Cash is a good example of a defensive asset.

Dependant
Your spouse (legal or de-facto, which may include a same sex partner), your children, your spouse's children or adopted and ex-nuptial children or someone you have an interdependent relationship with.

Diversification
Diversification is dividing your investments among different types of asset class you may reduce your overall investment risk. Otherwise known as not putting all your eggs in one basket.

Diversified fund
A fund made up of a mix of asset classes.

It’s a strategy designed to eliminate losses from attempting to second guess the market, and results in the purchase of more share units when prices are down and less share units when prices are up.

It has been shown to reduce the average price of investments over a long period.

Dow Jones Industrial Average (also known as the Dow)
The Dow is a share price index measuring the market prices of 30 major companies on the New York Stock Exchange.

 

E

Eligible Rollover Fund (ERF)
A super fund which can receive automatically transferred benefits from other super funds.  They’re usually used when a member can’t be located, has a very low account balance, or has been inactive for a long time (inactive with their super).

Entry price
The price of a unit given to an investor when they want to buy into a super fund.

Entry fee option
It’s a fee deducted from each contribution made into an investment.

Exit fee
When you leave your investment (exit), you sometimes have to pay some money (fee).  Thus exit fee.

Exit price
The price of a unit given to an investor when they want to take their money out of an investment.

Equity
It’s how much of an asset you own.  

 

F

Financial advisor
Financial advisors are people who are licensed to give you advice on financial matters.  They are usually people who know a bit about money and what to do with it.  
A licence means a financial advisor is obliged to act solely in your interests.  If you think a financial advisor is being a bit shifty, that's where ASIC comes in.

Fixed interest security
An investment that pays the same rate of interest every year for a set timeframe.  Examples of fixed interest securities are bonds, annuities, bank bills and notes.

Fund manager
A species often referred to as investment managers, usually operating as an organisation.  These investing specialists like nothing better than investing in a portfolio of assets for someone else.

Forgotten Super
It’s simply super in an account somewhere, but you can’t remember where. It’s different to lost super, which has a very specific meaning.

 

G

Gearing
The ratio of your own loan amount to the value of your security.

Gross domestic product (GDP)
It is a measurement, in dollar terms, of the aggregate goods produced and services provided within an economy over a year. It doesn't include income earned outside the country. GDP is published in Australia by the Australian Bureau of Statistics and is seen as a very important economic measure.

Growth returns
The part of an investor's return that results from capital gains or losses.  

 

H

Happy people
Our Customer Care Team are especially chosen for their happiness skills.  Nothing makes them happier than hearing from you.

 

I

Income Protection Cover
If you can't work because of certain defined events, this type of insurance will pay you a percentage of your income for a certain period of time.

Index
An index measures the performance or change in value of a group of assets such as shares.  There are indexes for pretty much any major group of assets.  The ASX 100 is an index of the top 100 companies in Australia.

Index manager
An investment manager who aims to perform as well as the investment markets.  If  the Australian share market returns 10 per cent so should your index manager.

Initial investment
The first wad of cash you whack into an investment.

Insurance
Buying financial protection against a possible future event.  If the specific event happens, the company you’ve purchased your policy from will help you out.

Interest
Interest is the price paid by a borrower for the use of a lender's money.  So, when you put your money into cash or a fixed interest the borrower (person/company) who has your money has to pay you for the privilege of borrowing your money.

Interdependency relationship
Two people have an interdependency relationship if they have a close personal relationship, they live together, one or each of them provides the other with financial support, and one or each of them provides the other with domestic support and personal care.

Investment
An asset you buy with the hope it’s going to give you an income or increase in value over time.

Investment bond
An investment requiring you to invest money for a minimum term.

Initial public offering (IPO)
When a company floats on the stock market it means you can buy shares in the company.  The first time a company sells it's shares is known as the IPO.

Investment option
Your choice of investment options determines how your Super is invested.  Have a look in more detail at what we can offer you by way of choice. Virgin Super investment options.

 

J

Joy
Is what our Customer Care Team feel when they get to answer your questions about super.

 

K

Knowledge
Of super is what our super Customer Care Team has.

 

L

Life insurance
When you talk about life insurance in the context of super it means insurance against premature death.

Listed property
Listed property is an asset class made up of property investments listed through a listed company.  

Lost Super
It’s if there’s a super account in your name that hasn’t had any deposits made in five consecutive years, or if your super fund gets a couple of return-to-sender notices after they’ve tried to reach you. When this happens, the ATO is informed, and your ‘lost’ record is added to their register.

 

M

Managed fund
A professionally managed investment where you pool your money with other people's money. Your get units for your money and a cut of the returns, be they positive or negative.

Management fee
The fee you pay your fund manager for managing your super account.

Marginal tax rate
The marginal tax rate is the tax scale in relation to your income.  To find out what yours is, check out the Australian Tax Office website.

MySuper
MySuper is a new, simple and cost effective superannuation product that will replace existing default products. MySuper products will have a simple set of product features, irrespective of who provides them.

 

N

Nice
The people we employ in our Customer Care Team.  They really are very nice, we test them for niceness and they're just soooo nice!

Non-concessional contribution.
This is a contribution made with money that you have already paid tax on such as from your after tax salary.

 

O

Old
Not what you want to be when you start planning your retirement.  The younger the better - even though it might seem like a very, very long way off.

 

P

Product Disclosure Statement (PDS)
A very, very, very important, (usually very long), document for you to read when you're looking at a particular investment.  It's where you'll find all the detailed information about the investment. Have a look at the Virgin Super PDS if you like!

Performance benchmark
To give an effective measure of how a fund manager has performed there needs to be a benchmark.  This determines whether they’ve done well or not.  Your fund might return 10%, but if every other investment of the same style returns 45% it doesn’t look so good. The selection of the appropriate benchmark will depend on the manager's investment style of and what they are investing in.

Permanent incapacity
Permanent incapacity is important for various claims and is a specifically defined state.  It's best to have a look at the detail in our Virgin Super PDS for the nitty gritty on this one.

Preservation Age
Is the age you must reach before you’re able to access your super benefits. Go to the ATO website to find out what your preservation age is.

Preservation rules
The rules that stop you getting your hands on all that sweet, sweet super money until certain events occur such as reaching your preservation age.

Property
Not the lost property office of your local train station but real estate, including land and buildings, which can be bought, sold, or rented out.

 

Q

Questions
Questions, we all have them.  Why is the earth flat?  What rhymes with orange?  Is there life on Mars?  Our Customer Care Team may not be able to help with those sorts of questions but they sure know their super.  Give them a call if you feel the need - 1300 652 770.

 

R

Restricted non-preserved benefits
Undeducted contributions, made after 1 July 1994 and before 1 July 1999.  These may be released when you leave your employer.

Risk
Some assets carry a higher form of investment risk than others.  These are known as growth assets (e.g. shares).  Those that are more stable are called defensive assets (e.g. cash and fixed interest).  If your super investment option carries a higher level of risk, it means you have the potential to nab juicy returns over the long term.  In the short term, it’s important to note that high risk investors may experience negative returns - generally between one and five years.

 

S

Salary sacrifice contributions
If your employer offers salary sacrifice it means you can ask to pay more of your pre-tax salary into your super. These contributions are taxed at 15% but by reducing the income you receive you may push yourself into a lower tax bracket.

Securities
A type of transferable interest representing financial value.  Common examples include notes, bonds, stocks, futures, contracts or options.

Share
When you buy a share or shares, you become a partial owner of a company.  If you bought shares in a company and they gave you poor customer service you can start shouting "do you know who I am, I own you, I own you".  It might not get you what you want but how often do you get the chance to do that?

Super guarantee contributions
By law, your employer must invest money for you into a complying super fund unless you're earning less than $450 a week.  There are also some exceptions around casual work.

Standard Super Choice Form
A form you give to your employer telling them which super fund you have chosen so they can put those contributions where you want them to go.

 

T

Time horizon
The length of time it takes to reach your investment goals.  It's very important for working out your investment goals and what you need to invest in to meet those goals.
In super, it’s the length of time before you plan to use your super.

The Trustees
People responsible for ensuring the Fund is run properly and honestly.  We use Diversa Trustees Limited – one of Australia's largest specialist super trustees.

 

U

Undeducted contributions
Contributions to your super made from your after tax earnings.

Unit
When you invest in a managed fund, you are buying units of that fund.

Unit price
This is how much a unit in a super fund will set you back.

Unit trust
Where a group of investors put their money together into a managed fund.  They all have units and share the returns of the fund be they positive or negative.

Unrestricted non-preserved benefits
These are benefits you are allowed to get your hands on.  How you get your hands on them is determined by the rules of the fund.

 

V

Virgin Money
Go on, give us a call, 1300 652 770, 8am - 6pm (ESDT), Monday-Friday.

 

W

 

X

 

Y

Y, indeed.

 

Z

 
 

Join Virgin Super

Contact us.

Call 1300 652 770

8am-6pm AEST,
Mon-Fri

 

 

It is very important to note that superannuation is a generally long term investment and that past performance is not indicative of future performance.

 

* Automatic Death & TPD cover for Australian residents aged 15-64 with our default insurance offering. Conditions and Exclusions (such as pre-existing medical conditions) apply. See the Virgin Super Insurance Guide for more information.

 

^ The Virgin Super Plus Administration Fee rate percentage is tiered and decreases for balances greater than $25,000 and $250,000. Other fees & costs apply, see the Product Disclosure Statement for further information.

 

+ SuperRatings award reflects a funds' value for money, and is awarded based on a rating system of investment, fees and service. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria.

 

This information is of a general nature only and does not take into account your personal financial situation, needs or objectives. As we don’t know your financial needs we can’t advise if Virgin Super will suit you. Please consider the Product Disclosure Statement and Financial Services Guide before making a decision about the product.

 

Prepared by Virgin Money Financial Services Pty Ltd ABN 51 113 285 395, AFSL 286869. Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 is Trustee for Virgin Superannuation ABN 88 436 608 094. Virgin Superannuation ABN 88 436 608 094.