Super funds

[Guest karyn]

Hi everyone!

 

I have recently started work for one of the private hospitals in Adelaide, and the superannuation fund they use is HESTA.

I'm really bamboozled by all the information, and tbh, don't really understand it!! All this stuff about reinvesting your money!

Why can't it be as simple as the UK? It comes out of your salary into your pension fund and that's it!!

Can anyone translate the whole HESTA thing into English for me so I know what I'm signing up for??

Cheers!

Karyn x

[Rich & Chit]

I work in one of the private labs in town and my super is also with HESTA. They seem to be one of the main funds for health professionals. Get in touch with Andy Williams on this forum he's the money man and will explain all you need to know.

[Andrew from Vista Financial]

Hi everyone!

 

I have recently started work for one of the private hospitals in Adelaide, and the superannuation fund they use is HESTA.

I'm really bamboozled by all the information, and tbh, don't really understand it!! All this stuff about reinvesting your money!

Why can't it be as simple as the UK? It comes out of your salary into your pension fund and that's it!!

Can anyone translate the whole HESTA thing into English for me so I know what I'm signing up for??

Cheers!

Karyn x

 

 

Hi Karyn

 

It can be that simple really as the Superannuation Guarantee Contributions (SGC) which are a minimum of 9% of salary is paid by your employer direct into a Super fund, so nothing here that needs to be done by you.

 

Nowadays most people can get more proactively involved and choose there own Super funds either by using there own knowledge or that of a Financial Planner. However for those that just want it to be easy usually the employer offers a default fund which in your case is Hesta.

 

Hesta is an industry fund which means it is a basic fund and is low in fees. Again for people that are not sure which investment option to invest the contributions into there will be a default investment option which in Hesta's case is the Core Pool option (Balanced option).

 

Over 90% of people just invest into the dafault option and to start out with this will generally suit most of them. If someone is looking to invest larger amounts/lump sums then they should really be taking advice on the correct investment approach and Super fund.

 

Regarding reinvesting your money, without seeing it in true context I imagine that it is referring to the returns made ie the interest/income and whether you wish to have it reinvested into the same option or into another option.

 

So for example if you opt to have your contribtions paid to the balanced fund do you want the returns to be reinvested back to the balanced fund or into another investment option.

 

I hope this helps.

 

Regards

 

 

Andy

 

 

Just to note that the above is not to be classed as financial advice merely general information only.

[Guest karyn]

Hi Andy,

 

Thank you so much for that!

At work they just gave me a big pack which had all sorts in about investments and stuff, but it's good to know that I can just do the standard one!

I'm just used to working for the NHS in the UK, and you pay into one pool of money! All the choice was a bit confusing!

 

Cheers again!

 

Karyn x

 

Hi Karyn

 

It can be that simple really as the Superannuation Guarantee Contributions (SGC) which are a minimum of 9% of salary is paid by your employer direct into a Super fund, so nothing here that needs to be done by you.