The industry fund has reduced investment fees across key super options and lowered the entry point for retirement products to improve member outcomes.
HESTA has lowered investment fees on its major ready-made super options while also making its Income Stream products more accessible.
The fund has released updated product disclosure statements showing savings of more than 6 per cent on the Balanced Growth portfolio, where most members are invested.
CEO Debby Blakey said the changes reflected HESTA’s focus on maximising value while maintaining performance.
“The fee reductions across our ready-made options demonstrate our commitment to optimising member outcomes while maintaining strong investment performance,” Blakey said.
“We’re focused on ensuring our members receive maximum value from their retirement savings.”
The reductions apply across HESTA’s top four ready-made super options. The default MySuper Balanced Growth option fell from 0.62 per cent to 0.58 per cent.
Conservative dropped from 0.42 per cent to 0.40 per cent, Sustainable Growth declined from 0.83 per cent to 0.75 per cent, and High Growth decreased from 0.78 per cent to 0.72 per cent.
At the same time, HESTA has announced it is reducing the minimum balance to open an Income Stream from $50,000 to $10,000, effective 30 September.
Blakey said the change recognises the diverse ways Australians enter retirement.
“Retirement is not a one-size-fits-all experience,” she said.
“This reduction in minimum balance will open up access to Income Stream products for more members, providing them with tax-free investment returns and the HESTA Retirement Reward, if eligible.
“It’s about adapting to the realities of modern retirement and providing members with the tools they need to improve their retirement outcomes.”
HESTA has also called for a broader reimagining of retirement design to reflect changing member needs.
Proposals include opt-out defaults for retirement products and the ability to top up income streams for greater flexibility.
“The way many Australians are retiring is changing and initiatives like these can help improve member outcomes and support the future adaptability of our retirement system,” Blakey said.
