One-in-five Tasmanians used early super access scheme

18 August 2020
| By Jassmyn |
image
image
expand image

Young Australians who used the early access to superannuation scheme could lose $150,000 to $180,000 from their retirement and one-in-five Tasmanians have accessed the scheme, according to Industry Super Australia (ISA).

ISA said over 10,000 of the state’s workers had emptied their entire super balance as $587 million was withdrawn by over 78,800 applications with an average withdrawal of $7,719 per application.

The super body said if the super rate increase were cut, an average 30-year-old man who took $20,000 from their super would either lose $180,000 from their retirement or be forced to work until 74, while an average 30-year-old female would need to work an extra eight years or have $150,000 less at retirement.

ISA said ditching the superannuation guarantee (SG) increase to 12% would have a “dire impact” on the savings of those who had accessed their super early.

Commenting, ISA chief executive, Bernie Dean, said: “The tens of thousands of Tasmanians who accessed their super to prop themselves up now face a looming tragedy of retiring with less and being more reliant on the pension.

“The only realistic way workers can make up the difference is with the promised increase to the super rate – ditch the super increase and we will be saddling the next generation with a whopping pension bill.

“The youngest Australians would face a shocking double whammy they can’t afford if they have to repay the debt government has taken on during this crisis, and then pay for our retirement on the pension.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago