Industry super fund HESTA will reduce the fees for eight of the 10 investment options of its retirement product, HESTA Super Income Stream.
From 1 July 2011, management fees for all investment options, except for the cash and sustainable Australian shares option will be reduced.
"More than 60 per cent of our members hold an investment in the default option, the Balanced Option", HESTA chief executive Anne-Marie Corboy said.
"For members with $100,000 in this option, this change will result in an annual saving of $150," she said.
The fund said the measure was taken after it experienced strong membership growth.
"We have been very pleased with the continuing growth of our Super Income Stream," Corboy said. "This has enabled us to bring management of the product in-house and to review the pricing structure," she said.
The fee for the cash option will increase to better reflect the costs charged by external managers, while the fee for the sustainable Australian shares option will not change.
HESTA member advice executive manager Debby Blakey said the reduction in fees could further boost demand for the fund's advice services because members who take up these types of retirement products often seek advice on a transition-to-retirement plan.
"Members at that level want advice," she said.
