A smoother path for your super

HESTA

We look at some obstacles to building your retirement savings, and how by navigating them you can make a smoother path for your super.

Managing higher living costs 

The price of almost everything has gone up. Fuel price spikes, supply shortages, and a tight jobs market have been putting upward pressure on living costs. With household budgets and living standards being squeezed, many people are looking to cut costs and get the most from their investments. 

The current high inflation (CPI) rate of 7.8% indicates the squeeze on living costs. In managing your super, a long-term approach and good diversification can help smooth fluctuations in investment returns, grow your savings, and provide enough income to help maintain your lifestyle in retirement. 

Knowing how much super you need

Many people underestimate how much super they need. The rule of thumb is that two-thirds¹ of a person’s (who own their own home) pre-retirement income is needed to maintain their standard of living in retirement. 

The good news is that we provide tools and resources to help you understand how much super you need in retirement: 

• Tools for planning your super – budgeting and super calculators can help 
• Combine your super so you could be paying less fees while boosting your super 

• For members closer to retirement age, understanding your full entitlements – the Commonwealth Seniors Health Card is a good start. You can also read our member story. 

Taking the right amount of investment risk

How much risk you take on your investments depends on your individual situation. Some people can be overly conservative in their investments in times of market volatility, rising living costs, or when they retire. This may leave them more vulnerable to fluctuating markets and lower returns. 

When investing your super, we take a long-term, diversified approach. This allows us to manage risk more effectively and helps provide more stability for your super and retirement income. We give you the freedom to choose which option to invest in. 

• Explore your super investment choices 
• Explore your income stream investment choices 

Taking control of your super

Taking control of your super helps you get the most from your retirement savings, whether you’re still building your super or in the income stream phase. 

To help you get the best out of your super, you can make use of a wide range of tools and services, including: 

• access to one-on-one advice 
• budgeting tools 
• check your estimated balance in retirement 
• reviewing your investments online, any time. 

¹ Source: Moneysmart.gov.au. 

Issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL 235249, the Trustee of Health Employees Superannuation Trust Australia (HESTA) ABN 64 971 749 321. This information is of a general nature. 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. The target market determination for HESTA products can be found at hesta.com.au/tmd Before making a decision about HESTA products you should read the relevant Product Disclosure Statement (call 1800 813 327 or visit hesta.com.au for a copy), and consider any relevant risk (visit the HESTA website for more information).