Important - Please Read
The product information on the IOOF website is of a general nature only and does not take into account your investment objectives, financial situation and particular needs.
IOOF Portfolio Service Allocated Pension and IOOF Portfolio Service Term Allocated Pension
- $20,000 minimum investment per pension
- Choice of investment strategies with varying investment objectives and risk/return profiles
- Switch easily between investment options
- Track your money online via IOOF's portfolio management tool, Portfolio Online
An Allocated Pension is a pension paid from an investment account. It provides flexible and regular pension payments and you have full access to the account balance in whole or part at any time. The pension payments are not guaranteed and are dependent on a number of factors, the most important being the annual pension payments deducted and the earnings received by the account. The pension will continue to be paid until your investment account is exhausted.
A Term Allocated Pension is a retirement income stream that provides you with regular pension payments* each year for a fixed term. At commencement, you must determine the number of years over which you would like your Term Allocated Pension to be paid. You can vary the amount of pension payments received each year within set limits, however your pension account will be exhausted by the end of the term.
The IOOF Portfolio Service Term Allocated Pension is available to:
- new applicants electing to rollover from an existing Term Allocated Pension; and
- the Reversionary Beneficiary of a current IOOF Portfolio Service Term Allocated Pension member who will continue the pension on the death of that member.
*The pension payments that you receive are subject to limits set by the Commonwealth Government. Pension payments will cease when your pension account balance is exhausted so these pensions may not provide you with an income stream for the rest of your life. Your account balance depends on investment earnings which may rise or fall.
The following table shows the terms available for a person who commences a Term Allocated Pension at the nominated age.
| Age | Available Terms Male |
Female |
|---|---|---|
| 45 | 35 - 55 | 40 - 55 |
| 46 | 35 - 54 | 39 - 54 |
| 47 | 34 - 53 | 38 - 53 |
| 48 | 33 - 52 | 37 - 52 |
| 49 | 32 - 51 | 36 - 51 |
| 50 | 31 - 50 | 35 - 50 |
| 51 | 30 - 49 | 34 - 49 |
| 52 | 29 - 48 | 33 - 48 |
| 53 | 28 - 47 | 32 - 47 |
| 54 | 27 - 46 | 31 - 46 |
| 55 | 26 - 45 | 30 - 45 |
| 56 | 26 - 44 | 29 - 44 |
| 57 | 25 - 43 | 29 - 43 |
| 58 | 24 - 42 | 28 - 42 |
| 59 | 23 - 41 | 27 - 41 |
| 60 | 22 - 40 | 26 - 40 |
| 61 | 21 - 39 | 25 - 39 |
| 62 | 21 - 38 | 24 - 38 |
| 63 | 20 - 37 | 23 - 37 |
| 64 | 19 - 36 | 22 - 36 |
| 65 | 18 - 35 | 22 - 35 |
| 66 | 17 - 34 | 21 - 34 |
| 67 | 17 - 33 | 20 - 33 |
| 68 | 16 - 32 | 19 - 32 |
| 69 | 15 - 31 | 18 - 31 |
| 70 | 15 - 30 | 18 - 30 |
| 71 | 14 - 29 | 17 - 29 |
| 72 | 13 - 28 | 16 - 28 |
| 73 | 13 - 27 | 15 - 27 |
| 74 | 12 - 26 | 15 - 26 |
| 75 | 11 - 25 | 14 - 25 |
| 76 | 11 - 24 | 13 - 24 |
| 77 | 10 - 23 | 12 - 23 |
| 78 | 10 - 22 | 12 - 22 |
| 79 | 9 - 21 | 11 - 21 |
| 80 | 9 - 20 | 10 - 20 |
| 81 | 8 - 19 | 10 - 19 |
| 82 | 8 - 18 | 9 - 18 |
| 83 | 8 - 17 | 9 - 17 |
| 84 | 7 - 16 | 8 - 16 |
| 85 | 7 - 15 | 8 - 15 |
| 86 | 6 - 14 | 7 - 14 |
| 87 | 6 - 13 | 7 - 13 |
| 88 | 5 - 12 | 7 - 12 |
| 89 | 5 - 11 | 6 - 11 |
| 90 | 5 - 10 | 6 - 10 |
| 91 | 5 - 9 | 6 - 9 |
| 92 | 5 - 8 | 5 - 8 |
| 93 | 5 - 7 | 5 - 7 |
| 94 | 5 - 6 | 5 - 6 |
| 95 | 4 - 5 | 4 - 6 |
| 96 | 4 - 5 | 4 - 6 |
| 97 | 4 - 5 | 4 - 5 |
| 98 | 4 - 5 | 4 - 5 |
| 99 | 4 - 5 | 4 - 5 |
| 100 | 4 | 4 |
This table lists the key differences and similarities between the two pensions, and more information about each pension is available in Part 1 of the Product Disclosure Statement.
| Allocated Pension | Term Allocated Pension | |
|---|---|---|
| Differences | ||
| Access to Capital | Yes | No (Except under limited circumstances, refer to Product Disclosure Statement for further information) |
| Asset Test for Centrelink Purposes | No asset test exemption The full account balance is assessable |
50% of the account balance is exempt |
| Income Variability | Annual pension payments must meet the minimum levels set by the Commonwealth Government. Pension Payments may vary depending on investment earnings |
Fixed annual pension payment based on account balance and remaining term of pension Pension Payments may vary depending on investment earnings |
| Term | Pension Payments will be made until the account balance is exhausted | Pension Payments are made over a fixed term. The account balance will be eroded by the end of the term |
| Similarities | ||
| Initial amount to establish pension | Superannuation monies only (ETPs) or undeducted contributions | |
| Investment Risk | Borne by the investor Income and account balance not guaranteed |
|
| Investment Options | A wide range of investment options are available | |
| Income Test for Centrelink Purposes | The annual pension payment less the "deductible amount" is counted as income under the income test (refer to Product Disclosure Statement for further information) | |
| Income Guarantee | No | |
| Taxation | Pension payments are tax free after age 60 | |
| Account Value | The account balance will change regularly It will increase or decrease when investment earnings are added to or deducted from your account and decrease when pension payments and fees are deducted from your account |
|
The IOOF Portfolio Service Pension Investment Options
IOOF believes in ensuring the investment options offered by products within IOOF Portfolio Service is in effect a "live" and manageable list of available investments, providing investors with a fully comprehensive selection of investment options. We conduct regular and extensive research to ensure the latest fund options, quality investment managers and the right mix of funds are available.
As a result the investment list offers:
- term deposits and over 180 managed funds from over 25 leading local and global fund managers,
- over 60 direct shares - a selection based on the top 150 stocks listed on the Australian Stock Exchange,
- a selection of funds within each asset class, and
- options that incorporate the latest in investment thinking such as long-short Australian equity, small cap and Asia equities funds.
Investment categories
The investment options can be categorised as follows:
- Easy Choice - offers a range of IOOF multi-manager diversified and sectoral Trusts.
- Investor Choice - offers over 180 managed funds and term deposits for you to build your own tailored investment strategy. The investment objective of each managed fund is to focus predominantly on a specific asset class or sector.
- Direct Share Choice - offers a range of shares listed on the Australian Stock Exchange.
More information about the investment categories is available in the Investment Strategies Booklet, Part 2 of the IOOF Portfolio Service Allocated Pension and IOOF Portfolio Service Term Allocated Pension Product Disclosure Statement.
How to invest
Before making a decision to invest in IOOF Portfolio Service Allocated Pension or IOOF Portfolio Service Term Allocated Pension you should:
- understand each type of pension and how it may benefit you, and
- understand how each pension operates.
Then you can: - select the product most suitable for you, and
- complete the application process.
This investment process and all related information is clearly explained in the IOOF Portfolio Service Allocated Pension and Term Allocated Pension Product Disclosure Statements, Parts 1 and 2.
You should read all parts of the Product Disclosure Statement before choosing to invest in IOOF Portfolio Service Allocated Pension or IOOF Portfolio Service Term Allocated Pension, and we recommend that you seek professional advice when determining the specific investment categories that you would like to include in your investment strategy.
IOOF - Your Investment Guardians