Married and de facto couples can now streamline their superannuation with the new Navigator Employer Service Spouse Account while potentially making significant fee savings.
Married and de facto couples can now streamline their superannuation with the new Navigator Employer Service Spouse Account while potentially making significant fee savings.
These savings can mean hundreds or thousands of extra superannuation dollars for a customer’s retirement account.
For example, a spouse account with A$100,000 would attract a maximum annual management fee of 1.39% (if held within an employer plan with A$1 million total funds) and the fee reduces further as the plan grows. This is discounted from the maximum fee of 1.8% for a personal account, and still provides all the outstanding features and flexibility of the Navigator platform.
And, there are many couples in Australia who could benefit from this type of plan, with 42% of married women opting out of the workforce1, and 47% of all women working part time2.
Navigator’s chief operating officer, Grant Salmon, says this account is perfect for couples with young families where one person has taken some time out of the work force to care for children, or has opted to work part time.
"Both members of the couple have the security of having their own individual superannuation account but they still have their retirement funds with the same organisation. The accounts are linked – not merged – so it is clear which money belongs to whom.
This means even if the couple splits up then each contributor to the spouse account is able to decide where their funds are transferred to, or they will be automatically transferred to the Navigator Personal Option," said Grant.
Available to members of the Navigator Super Solutions Employer Service and their partners, the Navigator Spouse Account is designed to help both members of a couple access the benefits of belonging to an employer plan.
Not only do members benefit from lower fees they also have access to wholesale investment charges (generally cheaper than retail counterparts) and the employer plan’s insurance premium rates, which can be up to 50% cheaper than individual rates.
Navigator is one of the first superannuation providers to offer couples a true spouse account, rather than forcing partners to open two separate plans and often pay higher fees.
Eligible couples may also benefit from tax breaks and super incentives, such as the Federal Government’s Co-contribution scheme and the spouse tax offset. And, the introduction of Choice of Superannuation fund in July 2005 will mean couples can start to actively look for funds that specifically meet their criteria – either together or individually.
"The spouse account means while both members of the couple are looking after their retirement plans, they are also both sharing in cost savings by uniting the account," said Grant.
The Co-contribution scheme gives Australians earning up to A$58,000 the opportunity to receive up to A$1,500 per year from the Government, while the spouse tax offset of up to A$540 per year for eligible partners making contributions into their spouse’s superannuation account may also be available. An unemployed spouse may also claim a personal tax deduction against any investment income for any contributions they make to their Navigator Spouse Account.
"The Navigator Spouse Account is one way for couples to take control of their superannuation right now, and structure it in a way that works for their family."
"It’s a little bit like opening a joint bank account and keeping all the family finances together. The spouse account simply brings your super together and makes it easier to keep track of, while saving significant amounts in fees," says Grant.
For further information on the Navigator Spouse Account please contact Navigator on 1800 814 899.
1www.diversity@work.com, Women at work, 20042Hon Keven Andrews MP, Australian Workplace, Balancing Family and Work, Canberra, November 2003.
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Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78 billion, and more than A$624 billion of assets under management (as at 1 July 2004). The group has more than 56,000 employees and 30 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator’) understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Navigator, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Navigator or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances.