advocating for smarter super in retirement

Australians are living longer and healthier lives in retirement, and many of us are looking to our super to play a greater role in providing the security and income we need so we can retire with dignity.

At HESTA, we believe that increasing our members' financial peace of mind can improve their retirement outcomes and help them face the future with confidence.

When the Federal Government released the Superannuation in Retirement discussion paper seeking community and industry views on optimising the role of super in retirement, we welcomed the opportunity to make a number of recommendations to improve Australia’s superannuation system, both for our members and retirees across the country.

Make it easier for members to access a retirement income stream product 

An income stream is a flexible way of accessing regular payments from super in the lead up to or after retirement once preservation age has been reached. 

Income stream products can help members build their super while they’re still working or provide a regular income when they’ve retired.  

According to the OECD¹, individuals are being asked to take more and more responsibility for their own retirement, although many struggle with the financial knowledge necessary to make these complex decisions.  

HESTA recommends that members are placed into an income stream product as a default, with the ability to opt out if they choose, to simplify the decision-making process and reduce administrative fees.  

Enable funds to provide more meaningful help to their members

Currently, superannuation funds can be limited in the advice they are permitted to provide to their members.

HESTA recommends that funds be enabled to better assist their members when they are looking for help to: 

• better understand their own situation
• manage administrative issues around transitioning to retirement, and
• take modest steps to maximise their financial security.

For example, funds could provide a more useful online experience to their members if they were permitted to include relevant behavioural prompts alongside retirement projection calculators and other digital tools.

A better financial future today

While these and other recommendations are being considered by the Federal Government, HESTA is here to help members create a better financial future now.

Planning for retirement is a journey, and we’re here to help members every step of the way.

With our Future Planner* tool, members can work out how much they’re projected to have in retirement, while exploring options to grow their super.

Our Retirement Hub can also help members prepare for the next chapter, covering information on retirement advice services, estate planning and applying for the Age Pension. 

HESTA also offers free information sessions, industry-leading interactive Q&A videos, and a range of advice services to help our members.

¹ OECD Pensions Outlook 2018, Chapter 5: Improving retirement incomes considering behavioural biases and limited financial knowledge.

* Future planner is a model, not a prediction. Results are based on limited information provided. See https://www.hesta.com.au/future-planner for more information.