HESTA has today announced it will be reducing administration fees on income stream accounts and slashing the minimum balance requirement for starting one.
Income stream accounts are designed for Australians in retirement, providing a regular income from super in a tax-free environment.
The fixed administration fee for all of the Fund's retirement products will be reduced by 16.7% to $65 per annum, while the asset-based fee will be cut from 0.23% to 0.18% per annum1. The changes mean that a HESTA Retirement Income Stream member with a $50,000 balance will see the total of these two fees fall by more than 18% to $170 per annum.
It is the latest in a series of changes delivering better value for HESTA members, with most investment fees reduced last year and an average 12% drop in insurance fees across all cover types delivered on 1 July this year.
The $108 billion Fund has also made the decision to sharply cut the current $10,000 minimum balance requirement for starting a HESTA Income Stream in order to make it more accessible. A residual balance of just $250 will be required to process pension payments.
HESTA CEO Debby Blakey said the changes would make a real difference for members.
"These are significant changes for our members in, or about to enter, retirement," Ms Blakey said.
"We understand the challenges many Australians face in retirement and it's terrific to be able to deliver lower fees at a time when persistent inflation is driving cost-of-living pressures.
"We are also pleased to be able to offer income stream accounts to even more members, so they have the opportunity to take advantage of tax-free investment returns."
HESTA continues to advocate for changes that support modernising the retirement system, including the ability to top-up income stream accounts.
"We want to support more flexibility in retirement and in line with that focus, continue to advocate for changes that would allow retirees to top up their retirement income streams with money earned from work. Right now retirees who return to work need to open a new super account, which is a needless inconvenience that often comes with a financial cost," Ms Blakey said.
The changes to fees and minimum balance will be effective from 30 September 2026.
