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[firstname,fallback=<<First names>>] [lastname,fallback=<<Surname>>]
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Membership number <<Membership number>>
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Update from the trustee • February 2024
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There has been a significant uptick in market returns since we last wrote to you. At the time, most members had experienced 3 consecutive months of negative returns. However, November and December saw a major turnaround with very strong returns both from equities and bonds. You’ll see from the graph above that Growth produced the best overall return this year (11.27%*) despite significant highs and lows from month to month. As is to be expected, monthly returns from Cash were the most consistent, but the overall return was much lower (4.01%*). It illustrates perfectly the concept of volatility. The greater the percentage an option holds of growth assets like shares, the more volatile the returns. Returns from options with fewer or no growth assets tend to be less volatile but lower over time. This same holds true if you look at annual returns over the past 10 years. Returns from Growth have been the most volatile from year to year but have highest returns overall (6.8% p.a.*). At the other end of the scale, returns from Cash have been the most consistent, but the overall return is much lower (1.9% p.a.*). Two takeaways:
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You never know what’s around the corner. Past returns do not predict future performance – a poor month is often followed by a good month; a poor year is often followed by a good year.
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Don’t chop and change investment options – saving for retirement is a long-term game where patience and sticking to a plan has historically been rewarded.
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* After fees and tax at 28%.
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View your 2023 account statement online
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Your annual account statement for the year ended 31 December 2023 is available for you to view on our website. Sign in to your account using your member number and PIN/password. Your member number is noted at the top of this newsletter. Select your 2023 statement from the menu at the bottom left of the dashboard (home screen). You can reset your PIN/password online if you’ve forgotten it or by contacting the helpline. The 2023 annual report and financial statements will be published around the beginning of April. We’ll be in touch to let you know when they’re available to view online. Fund updates for each investment option will be published at the end of June.
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Time to choose your representatives on the Board
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As a UniSaver member, you have direct representation on the Board of UniSaver Limited, the scheme’s manager and trustee. We call for nominations every 3 years for two member-elected directors. An election is held if we receive more than two nominations. Please consider putting your name forward if you believe you have the skills required to contribute to the running of the scheme at Board level. Each nominee must be endorsed by seven scheme members. Nominations close on Friday 10 May.
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Options for members aged 65+
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From age 65, you can withdraw some or all of your savings in the standard and locked
sections of UniSaver. Use form 10 in-service withdrawal. Some universities stop contributing
on behalf of members from age 65. Use form 4 stop or restart contributions if, at this point,
you want to stop your own contributions to the scheme. While you can stop contributions at
any age and withdraw your funds from age 65, you cannot withdraw from the scheme until you
leave work. At that point, you can exit the scheme by completing form 12 leaving form. One
further point – if you choose to continue contributing to the scheme, your minimum contribution
increases from 3% to 4% if your employer is no longer contributing on your behalf. Increase
your contributions if you need to using form 3 change contributions.
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Accessing funds to alleviate significant financial hardship
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Late last year, several media outlets reported a rise in the number of significant financial
hardship applications from KiwiSaver members as cost of living pressures began to bite.
We’ve noticed a similar trend. Most applications are from members who are unable to meet
the cost of their minimum living expenses. It’s worth noting that a significant financial hardship
withdrawal is an avenue of last resort. It is not an automatic benefit, and your application
must meet specific criteria before we will consider granting it. We have adopted the Financial
Services Council NZ guidelines to help assess withdrawal applications. The guidelines are
designed to create a balance between helping members address an immediate and urgent
need for funds and achieving long-term financial security, particularly in retirement. If your
application is reasonable and appropriate and falls within the guidelines, we will do our best to
help you.
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Processing times for leaving payments
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When you leave employment, it may take 3 weeks or more before we receive final contributions
from your employer depending on pay schedules. Once we receive all the information we need,
payment processing timeframes are upwards of 5 working days. Make sure you complete form
12 leaving form in full to minimise the chance of your payment being delayed.
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Who gets your money if you die?
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We will pay your benefit to your legal personal representative(s) if you die while you are an
active member of UniSaver or while you are entitled to a deferred benefit from the scheme.
‘Personal representative’ means the person(s) granted probate (where the deceased left a will)
or letters of administration (where the deceased did not leave a will). Having a valid will makes
sure your savings are distributed as you would wish and makes things easier on the people
you leave behind by. You can either use a lawyer or a professional trustee company or use a
DIY online service to write a will yourself. The MoneyHub website has an excellent guide that
explains the pros and cons of each option. The guide is written in plain English and packed
with good information. While you’re getting your affairs sorted, you might also want to set up
enduring powers of attorney for property and personal care and welfare. Again, MoneyHub has a useful guide.
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