retirement income strategy summary

Are you retired or approaching retirement? This information may help decide how you can make the most of this time in your life.

what is the retirement income strategy?

 

As part of the retirement income covenant introduced by the government, all superannuation funds are required to create a Retirement Income Strategy that identifies the retirement needs of their members, along with a plan to meet those needs.

Our strategy addresses the 3 objectives of the retirement income covenant:

  1. maximise the expected retirement income for our members
  2. manage expected risks to the sustainability and stability of our members' retirement income throughout retirement
  3. provide members with flexible access to funds in retirement. 

 


 

retiring is the destination, but the journey starts well before we get there


We save for it throughout our working lives and want to make the most of these savings when we’re able to convert them into an income.

At HESTA, we're always looking to improve retirement outcomes for our members. After all, this is why we exist. So we’ve set out a plan that identifies and recognises the retirement income needs of our members and how we can build the fund’s capacity and capability to service those needs.

 

Our retirement income strategy: 5 key objectives 

Our retirement income strategy outlines our plan to assist members approaching and in retirement to achieve and balance 5 objectives. 

1. Deliver value 

To provide members with consistent tangible value in the products and services we offer.

 

3. Optimise financial wellbeing 

To support our members to meet their living expenses while preparing for the future, whatever their circumstances. 

 

5. Ensure access 

To provide members with simple and timely access to their savings, information, and advice, regardless of their circumstances.

 

 

2. Build confidence 

To help our members meaningfully increase their confidence about the future through retirement awareness and advocacy. 

 

4. Manage risk 

To protect our members' income and financial wellbeing through relevant and timely risk management.


 

 


 

 

a few things to explain

 

We consider this to include both:

1.    after-tax income drawn from your HESTA account, and

2.    any entitlement to the Age Pension.

We’re mindful that our members have individual accounts, but about 70% of retirees retire as part of a couple. This can affect your income and entitlements, so we now offer couples advice planning sessions if you need help.

 

We consider this to be the length of time from when members are first eligible to access their super, which is called their ‘preservation age' (unless another condition of release has been met), and covers the rest of a member’s natural life.

Of course, this will differ for everyone. And it's hard to predict!

Preservation age is the earliest a member can transition into retirement, which is earlier than when most people actually retire. This age allows a longer investment time horizon and represents a more conservative view of how much you may need.

We’re also aware that people don’t necessarily ‘retire for life’ anymore and can restart employment if the need, opportunity or desire arises.

 

Our Retirement Income Strategy has been developed to reflect the specific needs of our membership and the challenges our members face now and into retirement.

This strategy is focused on members aged 45 and above. Our research and insights show that this is the age that engagement with super and retirement planning starts.

 

Using our deep insights into our members’ needs, we’ve defined member groups within this strategy that inform the design and delivery of key activities and initiatives to help meet those needs. Factors like age and life stage, behaviours and account balance helped us shape the groups and determine the next best steps for our members. This means we can offer you products, services and tailored levels of engagement that can help you achieve your retirement objectives.

Our approach has been designed to enable us to:

  • support members approaching retirement, or in retirement, to achieve more financial control and independence to balance their retirement objectives
  • offer effective communication and provide tailored support based on members' needs
  • provide members with a range of products, services and experiences appropriate for their situation
  • engage and guide members to take action to improve their preparedness for retirement
  • help our members and their partners make better decisions – from developing our products and services to offering experiences via the most appropriate channel.

Key to our strategy is understanding the solutions we outline for each group. This will form a starting point for engagement and guidance, with the potential for members to transition between groups and associated solutions as we learn more about you.

 

 

 

 

If your super balance is not where you would like it to be, HESTA can be your guide and support you with your retirement. That includes helping you build financial awareness and capability. We can help you feel more financially confident so you can make informed decisions about your retirement lifestyle.

You may be able to rely on the Age Pension once you're eligible, which can protect you against various risks over time. The HESTA Income Stream can be used to supplement pension payments. It provides flexibility and risk management and may be appropriate for you in retirement.

The HESTA Income Stream provides:

  • a unique Ready-Made strategy that de-risks a member’s investment portfolio over time
  • ability to vary income drawdown amounts, subject to legislated payment rules
  • ability to withdraw lump-sum amounts in addition to the regular income payments
  • access to 10 investment options, with varying risk and return profiles, with most targeting investment returns above inflation (to address inflation risk and market risk)
  • ability to index regular payments to inflation.

Members approaching retirement who are eligible can consider:


How can we help?

HESTA currently offers the following support to help you achieve and balance your retirement income needs.

  • Retirement Essentials – we've partnered with Retirement Essentials so you can access to support on how to apply for the Centrelink Age Pension and Government Seniors Card
  • Retirement Hub – our one-stop online resource for super and retirement planning relating to your HESTA account, to help you feel ready for your next chapter
  • digital personal advice in relation to Transition to Retirement (TTR)
  • access to links from HESTA's website to ASIC’s Moneysmart calculators
  • information seminars for members approaching retirement
  • access to pre-retirement and retirement on-demand videos, available at any time online
  • detailed and interactive annual statements, with a personalised year-in-review
  • personal advice on HESTA super, transition to retirement and income stream products offered face-to-face, by phone and via video conference
  • personalised communications for those wanting to engage and prepare for retirement, including how legislation can impact members
  • personalised communications to eligible retirees to see if a HESTA Income Stream is right for them
  • support services and tools through HESTA or our partner network to help members with estate planning, aged care support for family or loved ones, access to discounted mental health support, and much more. 
  • the HESTA App, allowing members to conveniently engage with and monitor their superannuation accounts
  • wealth-building/savings maximisation and education.

 

We continually explore benefits and services to offer to our members, which may include:

  • improving our understanding of members and their needs by enhancing the use of retirement metrics and research
  • additional seminars for members approaching retirement and/or Age Pension eligibility age
  • additional tools to help you manage your money and spending confidence in retirement.

 

 

Members are looking for help to maximise and guide their wealth building while understanding what life in retirement might look like.

To best support you in maximising income and managing risks, the HESTA Income Stream provides flexibility and some risk management. It provides a suitable solution for converting your superannuation savings into an income stream in retirement.

One thing to consider is how long your money may last. You may also be eligible for the Age Pension. However, it's important to consider if this will meet your income needs during the retirement period.

The HESTA Income Stream provides:

  • a unique Ready-Made strategy that de-risks a member’s investment portfolio over time
  • ability to vary income drawdown amounts, subject to legislated payment rules
  • ability to withdraw lump-sum amounts in addition to the regular income payments
  • access to 10 investment options, with varying risk or return profiles, with most targeting investment returns above inflation (to address inflation risk and market risk)
  • ability for members to index regular payments to inflation.

Members approaching retirement can consider:


How can we help?

HESTA currently offers the following support to help you achieve and balance your retirement income needs:

  • Retirement Essentials – we've partnered with Retirement Essentials so you access to support on how to apply for the Centrelink Age Pension and Government Seniors Card
  • Retirement Hub – our one-stop online resource for super and retirement planning relating to your HESTA account, to help you feel ready for your next chapter
  • digital personal advice in relation to Transition to Retirement (TTR)
  • access from the HESTA website to ASIC’s Moneysmart calculators
  • retirement seminars for members approaching and/or in retirement
  • personal advice on HESTA super, transition to retirement and income stream products offered face-to-face, over the phone, and via video conference
  • access to pre-retirement and retirement on-demand videos, available at any time online
  • detailed and interactive annual statements, with a personalised year-in-review
  • in-person and online seminars to help members prepare for their retirement
  • personalised communications for those wanting to engage and prepare for retirement, including how legislation can impact members
  • personalised communications to eligible retirees to see if a HESTA Income Stream is right for them
  • support services and tools through HESTA or our partner network to help members with estate planning, aged care support for family or loved ones, access to discounted mental health support, and much more
  • the HESTA App, allowing members to conveniently engage with and monitor their superannuation accounts
  • wealth-building and education.

 

We continually explore benefits and services to offer to our members, which may include:

  • improving our understanding of members and their needs by enhancing the use of retirement metrics and research
  • seminars for members approaching or in retirement
  • additional tools to help you manage your money and spending confidence in retirement.

 

 

The information shown is general information only. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. For more information, contact us or visit hesta.com.au/pds for a copy of a Product Disclosure Statement which should be considered when making a decision about the HESTA products on this website and to consider the relevant risks. The target market determination for HESTA products can be found at hesta.com.au/tmd

 

we'll update our strategy regularly

 

This Retirement Income Strategy will be reviewed annually or whenever there is a material change in circumstances or regulations.

A comprehensive review will be undertaken every 3 years in accordance with the requirements of Section 52 of the Superannuation Industry (Supervision) Act 1993. The review will gather any necessary information and will cover the appropriateness, effectiveness and adequacy of this strategy, including the assumptions underpinning it.

 

 

 

need help to work through your options?

Our team is right here for you. Reach out to us today – it’s one of the benefits of being a HESTA member.