If you're considering switching super funds, ask these key questions first:
How much is it going to cost me?
Many funds have a range of different fees and charges. Some may seem small, but they can add up to a substantial amount over time. They may include:
- Establishment fee - charged when joining a fund
- Contributions fee - charged on each amount contributed to your investment
- Withdrawal fee - charged when money is taken out of your investment
- Termination fee - charged to close your investment
- Investment switching fee - charged when you change investment choices
Note: HESTA does not charge any of these types of fees.
What disability and death insurance arrangements are available?
Many funds offer disability and death insurance options. To be sure you're getting a good deal, you should consider your individual needs and always read the fine print. You should also check what insurance benefits you may lose if you switch funds.To find out what HESTA offers, click here.
What commissions or agents' fees are paid?
Check whether the fund pays up-front or ongoing commissions. For example, trailing (or ongoing) agents’ commissions may require an annual fee charged as a percentage of your investment. So the higher your balance, the higher the trailing commission. Up front agents' commissions are one off payments to agents for recruiting members and sourcing investments. The fees on your account can be used to pay these commissions.
Note: HESTA does not pay any agents' fees or commissions, which is one reason why our fees are generally much lower than those of many other funds.
Can I take my fund with me?
Changing jobs is a fact of life – so it's worth checking if your super can change jobs with you.
No other specific fund for health and community services has such a large employer network across Australia, so there's a good chance your employer is already with HESTA. If they are, and you’re already a HESTA member, you don't have to fill in more application forms - simply provide your HESTA membership number and they can do the rest.
And if you become self-employed, cease work or start working with an employer who is not a HESTA employer, you can still remain an active member by:
- Continuing to make personal contributions to your existing account (subject to government regulations)
- Asking your new employer to pay into your HESTA account (you can ask your employer to become a HESTA employer – it's free)
- Switching to HESTA's Personal Super Plan
What sort of returns has the fund achieved?
In the long term, one of the most significant factors affecting your retirement benefit will be the investment returns you receive from your fund, after costs, fees and taxes are deducted. You should check what sort of returns the fund has achieved and whether you have a choice of investment options. You should also examine the investment objectives of the fund and of the investment options to choose from. That can help you assess the level of risk involved and establish whether the investments have been meeting their goals. Remember past returns are not necessarily indicative of future results.
You should also check whether fees and charges are deducted before or after returns are applied to your account. (HESTA's declared interest rates are after payment of investment management fees, member benefit protection costs and taxes). Click here to find out how HESTA has performed.
What investment choices do I have?
You can take more control of your future if you can choose where your super's invested.
Your super can generally not be accessed until you retire, but with HESTA you decide the level of control you want over your investment strategy. We recognise that you have your own goals for the future, so we’ve developed a range of investment options for you to choose from.
You may prefer your money to be invested in a Ready-Made Investment Pool or you may know a lot about investing and want to take a very individual approach. Click here to find out more about HESTA's investment choices.
How will I be kept informed?
HESTA is proactive in keeping members informed about their super accounts and the superannuation industry in general. Regular newsletters are produced for our members and their employers and our website offers a wide range of educational regularly updated information.
What extra services can I access?
HESTA offer members and employers access to these and a number of other extra services: