coronavirus

We take a look at what the coronavirus means for your super. Register for our interactive webinars on the changes - or read on below.

We understand news of the coronavirus pandemic and resulting share market falls could be concerning for you. Stock markets in both Australia and around the world continue to react to the changing situation, and many of our members have been asking us what this might mean for their super.

 

 

What if I'm affected financially by coronavirus?

From 20 April 2020, you may be able to access some of your super early.

The Federal Government has announced changes that will allow people financially impacted by the coronavirus to access up to $10,000 of their super in 2019-20 and a further $10,000 in 2020-21.

Before you decide if early access to super is right for you, find out how this may affect your super balance in the long-term.
 

Applications will be processed by the government, not HESTA - you'll be able to apply from 20 April 2020.


Other things to note:

  • the Australian Taxation Office (ATO) will decide who is eligible, not HESTA 
  • HESTA cannot release any super under the proposed changes yet
  • to claim, you will need to go to myGov
  • if you are choosing to call us at this time, our wait times are higher than normal (over 1.5 hours).

 

Find out more about how the changes work here.

 

Prefer to hear about this directly from the HESTA team?

Register for our early release webinar now

 

Register now

 

 

For HESTA Income Stream members

For the 2019/20 and 2020/21 financial years, minimum drawdown amounts have been reduced by 50% in response to the coronavirus pandemic. See the new amounts here.

 

Prefer to hear about this directly from the HESTA team?

Register for our income stream drawdown changes webinar now

 

Register now

 

 

A word from our CEO, Debby Blakey

“Our investment team and our managers are experienced at managing investments through major market events like this, and I understand it can feel hard to hold your ground and look beyond the headlines,” says HESTA Chief Investment Officer Sonya Sawtell-Rickson.

 

“For members that don’t plan to retire in the next two years, it’s important to remember super is a long-term investment.

 

“While markets can fluctuate over the short term, it’s the returns generated over the long-term that really matter. Even after periods of extreme market volatility, like the Global Financial Crisis (GFC), long-term investment returns recovered well.

 

“Reacting to short-term market movements can negatively impact the long-term performance of your super. It risks locking in a temporary fall in the value of your investments and missing an eventual rebound.”

 

Before switching your investment options, it’s important to consider your investment timeframe and the potential impact of switching investments based on short term market movements.  Switching investment options during a short term market downturn can have a significant effect on your super balance over the long term. It may mean locking in losses and missing out on potential higher returns by being out of the market when it recovers.

 

This chart shows the difference between staying in Core Pool and switching to other investment options during the Global Financial Crisis in 2009.   

These figures are for illustration purposes only and do not take into account fees, insurance or contributions. Calculations are based on historical monthly returns from 29 February 2008 to 29 February 2020, switching on 31 March 2009 with a super account balance of $50,000. Cumulative returns are calculated from 31 March 2009 to 29 February 2020. Past performance is not a reliable indicator of future performance.

 

Prefer to hear about this directly from the HESTA team?

Register for our market volatility webinar now

 

Register now

“If you have an investment timeframe of two years or less, you might want to seek advice if you plan to change how your super is invested or your investment choice,” says Josh Parisotto, Chief Advice Officer at HESTA.  

 

“For our members in an income stream option, the default strategy is a combination of balanced and defensive investment assets and has been designed to be lower risk than our Core Pool option,” says Josh.

 

“We provide advice about super for HESTA members, at no extra cost,” says Josh. “However, due to the large volume of calls currently coming into our contact centre and requests to talk with an adviser, there may be a delay in our response. Please be assured we’re working hard to respond to everyone who has reached out.”

 

For the 2019/20 and 2020/21 financial years, minimum pension drawdown amounts have been reduced by 50% in response to the coronavirus pandemic. See the new amounts here.

 

Prefer to hear about this directly from the HESTA team?

Register for our income stream drawdown changes webinar now

 

Register now

Your insurance through HESTA covers you for pandemics including the coronavirus.  So, if you currently have death, TPD or income protection within your HESTA super account, we’ve got you covered.  Check your cover now in your online account.

 

We’ve been here before: market impacts

“Our investment team and external investment managers are highly experienced at managing investments through a range of market conditions,” says HESTA Chief Investment Officer Sonya Sawtell-Rickson.

 

“While it’s still too early to know the full impact of the coronavirus, our team is carefully monitoring the situation and is well prepared to both manage risk and invest in opportunities arising from changing market conditions.”

 

 

 

Need advice?

We're here to help