1. Making the most of retirement is an Authorised Representative of RI Advice Group Pty Ltd

2. Making the most of retirement is an Authorised Representative of RI Advice Group Pty Ltd

3. Making the most of retirement is an Authorised Representative of RI Advice Group Pty Ltd

4. Making the most of retirement is an Authorised Representative of RI Advice Group Pty Ltd My Name Financial

5. Making the most of retirement is an Authorised Representative of RI Advice Group Pty Ltd JV logo

6. 5 Disclaimer Important Notice RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts. The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

7. 6 Agenda Introduction Your retirement lifestyle Planning for the long-term Challenges and considerations Retirement income opportunities Accommodation options and aged care Protecting your lifestyle and loved ones RI Advice Group Summary

8. 7 What do you want out of your retirement? For most retirement is considered a goal, an aspiration, a reward for a lifetime of hard work

9. 8 At BirthAt age 15At age 65 Male80.180.584.2 Female84.384.787.1  A couple age 65 today has a 50% chance one will live past 90  A couple age 70 today has a 25% chance one will live past 95  Life expectancy data changes as you attain older ages But how long will you live? Source: ABS (cat3302)

10. 9 Life expectancy continues to rise Based on current mortality rates, a boy born in 2011-2013 can expect to live 80.1 years, while a girl can expect to live 84.3 years. Sources: Australian Bureau of Statistics Cat No. 3302.0; ABS Cat. No. 3105.0.65.001

11. 10 Plan for the long-term Consider investing in growth assets Keep a long-term view even in times of market volatility Choose the most appropriate income stream for you Consider eligibility for any Centrelink benefits

12. 11 Invest in growth assets Remember You need to consider sustaining sufficient growth to stay ahead of tax and inflation over the long-term Shares can provide capital growth and income

13. 12 Invest in growth assets $500,000 $400,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 6% net return over 20 years 8 % net return over 20 years $145,382 $466,096 $320,714 Helen Christian Helen invested her super in a Conservative option returning 6%. At the suggestion of his adviser Christian invested in a less conservative option with a higher % of growth assets that returned 8%. Source: ANZ CIO Research

14. It pays to stick to your investment plan Markets fluctuate, so the longer you stay invested, the less the effect of short-term volatility. Source: Thomson Financial Datastream, ANZ Wealth. Returns to 31 March 2015 Short-term pain Long-term gain

15. Long-term asset class performance Timeframe: 01/01/83 – 30/06/15 Data: Australian shares - S&P/ASX 300 Accum Index, International Shares - MSCI World (ex Aus) in $A, Listed Property Trusts: S&P/ASX 300 Prop Trust (Pre May 05) / FTSE EPRA/NAREIT Developed (Post May 05) Fixed Interest: Commonwealth Bank Bond Index (Pre Sept 89) / UBSA Composite Bond All Maturities Index (Post Sept 89), Global Fixed Interest: Barclays Capital Global Aggregate Index Hedged $A. Cash: 11 am Cash Rate (Pre Apr 87) / UBS Bank Bill Index (Post Apr 87). Source: RBA, Datastream, ANZ Global Wealth.

16. 15 Diversification is important. Choosing the most appropriate assets will depend on your personal situation. Income Unit trusts Bank Term deposits Debentures Pensions/ Annuities Property securities Betting the right mix

17. 16 The effects of inflation 1980: $3,698 How much would you pay today? Over $20,000

18. 17 -10.36% p.a. 1987 crash Source: Morningstar / ANZ CIO Research Data to 31 December 2013. Value of $10,000 invested on 31/12/79, S&P/ASX All Ordinaries Accumulation Index. Past performance is no indication of future performance. US sub prime crisis leads to credit crunch Gulf Crisis: land war ends Soviet coup US interest rate rise: US bull run Keating’s banana republic statement Sharemarket crash Tienanmen Square Iraq invades Kuwait Anticipation of economic recovery Mabo Resolution/ $A bottoms US interest rate rise: world bond markets collapse Kobe earthquake Asian Crisis Global interest rate cuts September 11 terrorist attacks Conflict in Iraq QE3 Keep a long-term view QE tapering initiated QE2 GFC market low

19. 18 “The Sharemarket is the transfer of wealth from the impatient to the patient” -Warren Buffet Quote

20. 19 Choosing an appropriate income stream Your retirement savings Assets with high earning potential An account- based pension A guaranteed/ Non-account based pension A new lifetime Guaranteed income stream

21. 20 Account based pensions With account based pensions you: Receive a regular tax-effective income Select the amount you need (above a prescribed minimum) Can change the income level each year (above a prescribed minimum) Have peace of mind knowing your actual account balance at anytime Generally, you can receive capital at anytime May receive social security concessions Can pass the account balance onto beneficiaries upon death

22. 21 AgePercent of account balance (average) Under 654 65 – 745 75 – 796 80 - 847 85 - 899 90 - 9411 95+14 If a Transition to Retirement pension then a maximum of 10% applies, no maximum otherwise What is the minimum you must draw? Account-based pensions

23. 22 Taxation of member benefits Age 60 & over: Tax-free lump sums and pensions from taxed funds Lump sum or pension payments are classified as non assessable income - do not need to be included in annual tax return Age 55 to 59: Tax-free lump sum cap of $ 195,000* – amounts above 15% tax Pension payments – marginal tax rates less 15% tax offset Taxable components included in assessable/taxable income * low rate threshold for 2015/16 financial year

24. 23 Non-account based pension and annuities Non account-based pensions have the following general characteristics: Include lifetime, fixed term and life expectancy pensions and annuities They pay a regular, guaranteed income over a set period of time, life expectancy or lifetime They are usually non-commutable, which means they can't be converted into a lump sum at a later date They tend to have less flexibility and offer lower long-term yields than market-linked products Pensions are accessed through superannuation fund providers while annuities are sold through life insurance companies

25. 24 Lifetime guaranteed income streams Provide income for life regardless of market performance and life span Income will not reduce if the market declines Income has the potential to grow in a strong market May not be valuable for everyone as you pay an additional fee to insure income for life Complicated structure – talk to you adviser before incorporating into your portfolio

26. 25 Integrating a lifetime guaranteed income stream into your retirement plan can provide guaranteed income for life. One option may be to: Step 1 – Look at your annual expenses Step 2 – Determine what portion are essential living expenses Step 3 – Secure your essential living expenses with a guaranteed income for life Essential expenses Discretionary expenses Integrating your retirement plan

27. 26 To be eligible for the age pension, you must be – An Australian resident – 65 or over born before 1 July 1952. Gradually increasing to 67 if you are born after 1 July 1952 Centrelink also applies two ‘tests’ to determine your pension eligibility – Assets test – Income test The test which results in a lower pension entitlement is the one applied Consider eligibility for any Centrelink benefits

28. 27 Entitlement is determined under both tests Need to identify test which determines entitlement and implement strategies to improve entitlement. Lower amount Pension entitlement Interaction of income and assets tests Assets Test Income Test

29. 28 Homeowners Single Couple (combined) For full pension up to $205,500 up to $291,500 For part pension less than $779,000 less than $1,156,500 Non-homeowners Single Couple (combined) For full pension up to $354,500 up to $440,500 For part pension less than $928,000 less than $1,305,500 Thresholds apply from 1 July 2015 to 19 September 2015 Pension entitlement reduces $1.50 for every $1,000 over thresholds (single and couple) Example: $10,000 over the lower threshold reduces pension by $390 pa Social security – assets test

30. 29 Social security – income test Family situation Single Couple (combined) For full pension (pf) up to $162 up to $288 For part pension (pf) less than $1,882.40 less than $2,881.60 Pension entitlement reduces 50 cents for each dollar over the limit (single) 25 cents for each dollar over the limit (couple – each) Example: $100 per fortnight over threshold reduces pension by $1,300 per annum Thresholds apply from 1 July 2015 to 19 September 2015

31. 30 Improving your eligibility Under the Assets test Gift within limits Improvements to Principal residence For couples where one member is under Age pension age: –contribute new or re-contribute existing funds into Super for younger spouse Purchase a Funeral Bond – up to $12,250 Pay a Refundable Accommodation Deposit on entry to Aged Care facility

32. 31 Improving your eligibility Under the Income Test Where possible transfer financial assets into an income stream Gift within limits Improvements to Principal residence Purchase a Funeral Bond – up to $12,250 Pay a Refundable Accommodation Deposit on entry to Aged Care facility

33. 32 Deeming rates For singles getting a pension 1.75% for the first $48,600 of your financial investments 3.25% for any amount over that For couples where at least one of you is getting a pension 1.75% for the first $80,600 (combined) of your financial investments 3.25% for any amount over that For couples where neither of you is getting a pension 1.75% for the first $40,300 for each of your financial investments 3.25% for any amount over that

34. 33 Considering your pension eligibility InvestmentTreatment by Centrelink Non Account based pensions with a term > 5 years Life Expectancy, Lifetime & fixed Term annuities and Superannuation pensions Only part of income/annuity payment assessed by Centrelink under the income test Account based or Allocated pensions Only part pension payment is assessed by Centrelink under the income test if *grandfathered* otherwise deemed Investment propertyRental income, less allowable expenses is assessed under the income test Financial investments earning more than the current deeming rates Investments assessed as earning income at deeming rates. The portion of the return greater than the deeming rates is not assessed by Centrelink under the income test

35. 34 More than the pension Pensioner concession card Travel discounts Water rates Electricity and gas bills Public transport Car registration Prescriptions

36. 35 Choosing accommodation options to suit your lifestyle Pre-retirees and recent retirees: Stay in family home Downsize Sea change Move into over 55 resort style-living Seniors: Stay in own home (community and respite care available) Hostel Retirement village Nursing home

37. 36 Start living the good life Pre-retirees and recent retirees: Stay in the family home Downsize Sea change Move into over 55 resort style-living

38. 37 A helping hand At home care options: Home and Community Care (HACC) Services Community Aged Care Packages (CACPs) Respite Care Services Out of home care options: Residential aged care

39. 38 Hostel or nursing home? The main difference between a hostel and nursing home is basically the level of care provided: Hostels provide personal care, accommodation and some level of nursing care Nursing homes provide 24 hour nursing care and accommodation

40. 39 Financial considerations What will you do with the family home? How will the move affect you aged pension? How will you get an income to meet daily living costs? How will you finance the accommodation bond or charge? Will you still have something to leave to your children? Do you need a Power of Attorney? What are the tax considerations for beneficiaries receiving a part of your estate?

41. 40 Protecting your loved ones Family succession planning aims to: Distribute your funds and assets… - eg, maintaining your partner’s lifestyle, allowances for your grandchildren’s education, providing for an adult child who needs special care To the people you want… - partner or spouse, children, grandchildren, charities At the most appropriate time. - immediate, medium and long-term needs considered

42. 41 Smarter than the average Will A Will is important Family succession planning extends to – superannuation – life insurance – joint assets – Powers of Attorney – protecting assets – providing tax relief – and more

43. 42 Case study – John and Betty Family succession planning – Social Security Assets... their home other assets $800,000 Receive approx. $624.05 per fortnight in age pension (combined, includes pension + energy supplement)

44. 43 Case study continued Without estate planning, John receives No pension No Pensioner Concession Card With estate planning, John receives Approximately $343.50 age pension/fortnight Pensioner Concession Card

45. 44 We can help you: Select assets with a higher earning potential Safeguard your investments against volatility Choose the most appropriate way to receive an income Structure your assets and income to consider Centrelink benefits Choose the most accommodation option as your needs change Help you with an estate plan so your assets are passed onto love ones, in an effective and timely manner so they receive the benefits intended and are not caught up in any family squabbles after you’ve gone The value of professional advice in retirement

46. 45 Case study – meet Marilyn and Bill Planned to retire at 60 years this year Very healthy lifestyle In 2014, $500,000 in super In 2015, due to negative investment performance, their super balance decreased by 10% Now have $450,000 in an allocated pension

47. 46 Case study – meet Marilyn and Bill Marilyn and Bill are worried whether they will have enough income to cover their expenses in retirement. They can: Return to work on a part time basis to supplement the income from their allocated pension. Change their retirement plans and alter their lifestyle so they spend less money each year. Continue using the same level of income, however this would put themselves at risk of running out of money sooner. Talk to us about different strategies to make the most of their income, and protect their current lifestyle.

48. 47 We may suggest they… –Switch assets to investments with a higher earning potential –Change their retirement strategy to take advantage of Centrelink benefits –Change their retirement income strategy to insure part of their income for life –Downsize their home, and use profits to invest in growth assets –Consider over-55 resort style living

49. 48 Why us? We are proudly part of RI Advice Group. Over 35 years experience helping retirees in Australia One of the most well-known adviser groups in Australia Backed by one of the country’s largest wealth managers Access to leading research and technical teams A dedicated local team, closely connected to the community Proud to provide a quality service with a personal touch Holistic advice to meet individual circumstances and objectives Experts in retirement planning Your future. Made easier. SM

50. 49 Would you like more information? >  Ph: ( )  Mob: ( )  Email:  > > Please speak to me after this session, or call me if you’d like to find out how I can help you with your retirement plan.

51. 50 Disclaimer Important Notice RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts. The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.