Taking a career break?

Regardless of whether you're working, on a break or retiring, TelstraSuper can be your fund for life.

When you leave Telstra or a related company, your super's automatically transferred into TelstraSuper Personal Plus. You'll continue to enjoy uninterrupted TelstraSuper membership. However there are some important changes to your super account.

Find out about changes to your super account

Leaving your job may provide you with the opportunity to take a break from the work force to travel, start a business, or care for your family. If you’re taking a break from the workforce there are some key things to think about.

  1. Review your insurance cover
  2. See how a career break may affect your balance
  3. Make additional contributions
  4. Accessing your super

1. Review insurance cover

Your Death and Total & Permanent Disablement cover will transfer over to your Personal Plus account after your redundancy. The cover will be split between base and top-up cover and premiums will be deducted from your account.

If you take a break from the workforce and aren’t making employer contributions into your new Personal Plus account, your Income Protection (IP) cover will automatically stop after 120 days from when you are transferred, so you will no longer have this cover. Find out about keeping your IP cover if you’re still working.

Some of the things to think about when on a break are:

  • Will you have enough in you super account to pay for your premiums?
  • Should you review your insurance? You can change or cancel your cover at any time. You can apply to increase your insurance during certain key life events without needing to provide medical evidence (subject to eligibility).
  • Will you need IP cover?

You can’t claim your IP insurance as a result of a redundancy. However you may be entitled to benefits from Centrelink. You can find out more about Centrelink entitlements by visiting Human Services website.

TelstraSuper Financial Planning can review insurance within your TelstraSuper account over the phone at no additional cost as phone advice is included in your membership.

Speak to TelstraSuper Financial Planning

2. See how a career break may affect your balance

 Taking a break can have a long-term effect on your super savings. If you aren’t receiving or making contributions, the lost contributions can lead to a smaller balance when you retire. To see how a career break may impact your final super balance try out our online retirement income projector. You just need to put in your balance and the length of your break and it will provide you with a projected retirement balance. It could be a good idea to boost your super before, during and after a career break if you can so that you super doesn’t fall behind.

Calculate the impact of a career break

3. Make additional contributions

If you’re not working your employer contributions into super may stop, but there are still ways you can boost your super. If you’re under 65 you can make contributions into your super without meeting any work tests*. There can also be Government incentives for putting money into super if you have a lower salary.

Depending on your circumstances, you may wish to consider making additional contributions when you start working again to help  boost your super balance and make up for the time without employer contributions.

Boost your super during a career break

4. Accessing your super

Super is designed to help you save for retirement. As a result there are rules around when you can access your super.

Generally, you can access your super:

  •  When you turn 65 (even if you’re still working)
  • When you reach preservation age (the age the Government allows to access super) and you permanently retire from the workforce
  • When you reach preservation age and commence a transition to retirement income stream (tallowing you to draw down on your super before you are retired) 
  • If you meet another “condition of release” (limited circumstances such as financial hardship or compassionate grounds) If you’re retiring you can pay yourself an income through a RetireAccess income stream. 

Find out more about accessing your super 

Checklist

  • create a budget
  • review your insurance needs
  • calculate the impact of a career break on your super
  • check out your eligibility for Government co-contributions and other possible benefits
  • if you have a partner look into spouse contributions
  • speak to TelstraSuper Financial Planning – general and simple personal phone advice is included in your membership so it won’t cost you anything extra.

To speak with an adviser call 1300 033 166 or request a call by filling in the online form.

* If you are aged 65 or over, you are required to satisfy the work test in order to make personal contributions and other non-mandated employer contributions. To satisfy the work test you must have worked for at least 40 hours within 30 consecutive days in the financial year in which the contribution was made.