BAFN612 - Superannuation and Retirement Planning

Year

Credit points

Campus offering

Prerequisites

BAFN608 Financial Planning

Teaching organisation

Unit rationale, description and aim

Superannuation framework in Australia has been undergoing major changes over the past three decades. An increasingly aging workforce, governments' chronic budget deficits and impetus to progressively reduce social security costs spurs employees to take charge of their retirement at earlier ages. Providing advice for retirement emerged as one of the major components of the financial services sector.

This unit examines the changing nature of retirement from the perspective of personal financial preparation for retirement. As such, the four pillars for a retirement savings system are considered along with their interactions and optimal retirement savings strategies. The unit focuses on issues relating to superannuation contributions, regulatory framework, different types of superannuation funds, the rules relating to taxation and accessing of benefits, alternative retirement income stream of products and strategies designed to enhance superannuation and retirement income benefits. The social security and taxation implications associated with investment options are also considered. The unit enables a comprehensive engagement with the superannuation system in Australia so as to facilitate the development of superannuation strategies to achieve lifestyle expectations upon retirement. This unit also provides an overview of the procedures and theories related to retirement planning. The unit aims to provide students with an understanding of the Australian superannuation system, trends in retirement financing policies, relevant legislation and regulatory frameworks, financial products and taxation so that they can develop effective retirement strategies.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - critically examine the interplay between retirement planning and ethics and common good (GA2, GA3) 

LO2 - distinguish between different types of superannuation and superannuation funds available in Australia (GA5, GA6, GA8) 

LO3 - evaluate the establishment and continuing operation of self-managed super funds and the role and obligations of fund trustees (GA5, GA6, GA8)  

LO4 - compare and contrast diverse retirement income streams and assess eligibility for benefits under each income stream (GA3, GA5, GA6, GA8) 

LO5 - collaboratively develop superannuation and retirement plans appropriate for a client and provide appropriate advice (GA5, GA6, GA8) 

Graduate attributes

GA2 - recognise their responsibility to the common good, the environment and society 

GA3 - apply ethical perspectives in informed decision making

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA6 - solve problems in a variety of settings taking local and international perspectives into account

GA8 - locate, organise, analyse, synthesise and evaluate information 

Content

Topics will include: 

• The superannuation system in Australia  
• Ethics and common good in retirement planning 
• Contributions 
• Tax 
• Types of superannuation funds 
• Rules of funds management 
• Self-Managed Super Funds 
• Superannuation strategies (e.g.) salary sacrifice, transition-to-retirement, concessional and non- concessional contributions 
• Social security and aged care 
• Divorce and Bankruptcy 
• Retirement planning, including retirement products, annuities and pensions 

Learning and teaching strategy and rationale

ACU’s teaching policy focuses on learning outcomes for students in the form of knowledge, capabilities and background. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning form others. ACU promotes and facilitates learning that is autonomous and self-motivated, which is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied. 

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode and “Online” mode.  

This unit is offered in two modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups. Students are able to attend the interactive online sessions or face-to-face sessions, engage in self-directed learning supported by online activities, readings, forum discussions, assignment preparation and complete authentic activities and assessments. 

Attendance mode 

The schedule of the workshop is designed in such a way that students can achieve intended learning outcomes sequentially. Teaching and learning activities will apply the experiential learning model, which encourages students to apply higher order thinking. The unit ensures that learning activities involve real-world scenarios that potentially pave way for ‘real-world’ preparedness. The unit also uses a scaffolding technique that builds a student’s skills and prepares them for the next phase of the learning process.  

This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platform (LEO-Learning Environment Online) used in this unit provides multiple forms of preparatory and practice opportunities for you to prepare and revise.  

Online Mode 

This unit uses an active learning approach to support students in the exploration of the essential knowledge associated with superannuation and retirement planning. Students can explore the essential knowledge underpinning superannuation and retirement planning and develop knowledge in a series of online interactive lessons and modules. Students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge of superannuation and retirement planning. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning. 

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts constructivist approach to learning, which requires alignment of learning outcomes, teaching, learning and assessment and the environment in which learning occurs. Assessment is an integral part of the learning process. Assessment tasks in this unit are aimed at measuring and developing student’s achievement of both the learning outcomes and graduate attributes noted above. In order to pass this unit, students are required to submit all pieces of assessment and achieve an overall score of at least 50%. In this unit there are multiple forms of formative assessment for a student to assess their progress against the learning objectives as well as three (3) main pieces of summative assessment.  

Each of these assessment pieces have been designed to empower students, lead to greater equity and deepen students’ skillsets by virtue of their design. They are assessment that are constructed to integrate the unit’s instruction and curriculum. The first assessment, which is an individual task, students will be required to complete an individual assignment which is designed to assess the role of ethics and common good in retirement planning. The second assessment is a group assessment which enables students to learn to be a part of a collaborative and consultative team. This assessment requires students to form an online collaborative group and involves devising alternative solutions to a given scenario of retirement and making recommendations. The final assessment enables students to demonstrate their understanding of superannuation and retirement planning alternatives. It also enables students to investigate the distinction between different types of superannuation and superannuation funds available in Australia as well as the establishment and continuing operation of self-managed super funds and the role and obligations of fund trustees and the diverse retirement income streams and eligibility for benefits under each income stream. 

Overview of assessments

Attendance mode ;

Online mode

Representative texts and references

Australian Master Superannuation Guide (current financial year version), CCH Australia, Sydney.  

Australian Master Tax Guide (current financial year version), CCH Australia 

Australian Superannuation Handbook (current financial year version), Thomson Reuters.