the default option
At Health Super, we understand that not everyone will get actively involved in the way their super is invested. If you haven't made an investment choice, then your super will automatically be invested according to the Health Super Lifecycle Default Strategy.
This is a set-and-forget strategy based on your age.
So, if you are under age 50, in order for you to take advantage of long-term gains your super is put into a higher risk investment choice.
Check out this table to see where your super is invested.
| your age |
automatic default option |
| 18–50 |
Long-Term Growth |
| 50–60 |
Medium-Term Growth |
| at age 60 and over |
Balanced |
tip: The Lifecycle Default Strategy will automatically act as your investment strategy until you make an active investment choice.
how does the Lifecycle Default Strategy work?
If you are in the Lifecycle Default Strategy and under the age of 50, your superannuation will be invested in the Long-Term Growth option. When you turn 50 years old, your super will automatically be switched to the Medium-Term Growth option. When you turn 60, your super will automatically be switched to the Balanced option.
The switches will become effective from the first day of the month following your 50th and 60th birthday respectively.
why was this introduced?
The Trustees of Health Super have introduced this leading edge Lifecycle Default Strategy after extensive research and in consultation with our investment consultants, Watson Wyatt Worldwide.
The Lifecycle Default Strategy recognises the different investment needs and circumstances of our diverse member base. For example, members aged under 50 will have their money invested in super for a longer period of time, and can afford to ride the ups and downs of the investment cycle. Therefore, they are invested in Long-Term Growth, the investment option with the highest risk and return.
Whereas, we expect that members closer to retirement age generally want less investment volatility, and are therefore invested in Health Super’s Balanced investment option.
