Coronavirus has forced Samuel to dip into his superannuation and he is concerned about the long-term impact
4 years, 8 months ago

Coronavirus has forced Samuel to dip into his superannuation and he is concerned about the long-term impact

ABC  

Samuel Clarke knows withdrawing his retirement savings early is not ideal. Key points: Australians are allowed to access up to $10,000 of their superannuation this financial year under the Government's coronavirus assistance scheme Australians are allowed to access up to $10,000 of their superannuation this financial year under the Government's coronavirus assistance scheme Business owner Samuel Clarke has withdrawn funds from his super, saying "it's survival money" Business owner Samuel Clarke has withdrawn funds from his super, saying "it's survival money" Data shows that a 30-year-old who withdraws $10,000 now could end up with $25,000 less super when they retire But the digital strategist, whose business is down about 60 per cent, says the cost of a young family and unrelenting business overheads have left him with no choice. "We won't be going on fancy trips or do anything crazy with the money — it's survival money," he said. 'I don't have a job, I can't pay the rent' Michaela Menhartova hopes to use money from her super to study for "a more secure career". 'It's all about a choice' Senator Jane Hume, Assistant Minister for Superannuation, said the Government's super withdrawal scheme had been "targeted, proportionate and temporary".

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History of this topic

The superannuation warning that every Australia needs to read
2 years ago

The superannuation warning that every Australia needs to read

Daily Mail  

Australian superannuation balances are set to suffer their worst year since the Global Financial Crisis as higher interest rates dent share market returns. Australian superannuation balances are set to suffer their worst year since the Global Financial Crisis as higher interest rates dent share market returns Research group SuperRatings estimates balanced options in 2022 will suffer a 2.7 per cent …

The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement
2 years, 5 months ago

The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement

ABC  

When Brett Clements got his first job at 15, he dreamed that, if he worked hard, he would be able to enjoy the fruits of his labour and retire at 40, but it wasn't to be. Key points: The Superannuation Association of Australia estimates a single person needs $545,000 to retire comfortably One million people who withdrew some of their …

As inflation bites and interest rates climb higher our precious super may not be worth as much as we think
2 years, 5 months ago

As inflation bites and interest rates climb higher our precious super may not be worth as much as we think

ABC  

Regardless of what you think its value is, there's a certain truth to the old saying that something is only worth what someone else is prepared to pay. As global stock markets have cratered in recent months — with serious falls across the globe after interest rates began their ascent — a lot of big-name investors have been left nursing …

Why superannuation losses are likely to be worse than we think after horror year on global markets
2 years, 6 months ago

Why superannuation losses are likely to be worse than we think after horror year on global markets

ABC  

Even before last week's market conflagration, the scene was looking ugly. After last week's gravity pull from rising interest rates, the rout on global stock markets has turned that bleak prospect into a painful reality. While Wall Street has been grinding lower since January, higher commodity prices — courtesy of Vladimir Putin's war on Ukraine — have kept financial markets …

The average superannuation fund lost $4,000 last month, but experts say 'now is not the time to panic'
2 years, 11 months ago

The average superannuation fund lost $4,000 last month, but experts say 'now is not the time to panic'

ABC  

Since the start of the year, as a sinking share market has sparked fears among some of an imminent crash, Australians have nervously watched their super balances plummet. Hospitality worker Garth Boulton says he would like to contribute more money into his super but "it's just not financially viable". Retiree Beverly Baker says she's taken "a fair hit" in her …

Workers in underperforming superannuation funds could lose hundreds of thousands by retirement
3 years, 4 months ago

Workers in underperforming superannuation funds could lose hundreds of thousands by retirement

ABC  

It's hard to feel sorry for underperforming superannuation funds. On Tuesday, 13 big-name funds holding tens of billions of dollars of money invested by 1.1 million Australians failed the financial watchdog's performance test. The more than 1 million Australians who are members of underperforming superannuation funds will soon receive letters urging them to switch funds. The list of the nation's …

Super release slows but almost 3 million Australians have sucked billions from retirement savings
4 years ago

Super release slows but almost 3 million Australians have sucked billions from retirement savings

ABC  

The controversial coronavirus measure allowing Australians affected by the pandemic to tap into their retirement savings will close from New Year's Day. Key points: Almost 3 million Australians have withdrawn their superannuation early under the Government's coronavirus response $36 billion has been claimed, slightly below Treasury estimates in July The scheme closes on December 31 But not before nearly 3 …

Contributions to your super are set to get a boost next year — but coronavirus could send the plan off the rails
4 years, 4 months ago

Contributions to your super are set to get a boost next year — but coronavirus could send the plan off the rails

ABC  

For nearly 30 years, Australian governments have been working to get the percentage of your wage that employers must contribute to your retirement savings to 12 per cent. Here's what that looks like: Period General super guarantee July 1, 2002 - June 30, 2013 9 July 1, 2013 - June 30, 2014 9.25 July 1, 2014 - June 30, 2021 …

Paul Keating says superannuation withdrawals dwarf coronavirus support schemes like JobKeeper
4 years, 5 months ago

Paul Keating says superannuation withdrawals dwarf coronavirus support schemes like JobKeeper

ABC  

Former prime minister Paul Keating says the early withdrawal of superannuation dwarfs the support the Federal Government has injected through its JobKeeper program — and has entrenched inequality between Australian generations. Key points: Australians are expected to have pulled $42 billion from their super accounts by the end of the year Australians are expected to have pulled $42 billion from …

Early access superannuation scheme estimated to hit $42 billion in coronavirus support
4 years, 5 months ago

Early access superannuation scheme estimated to hit $42 billion in coronavirus support

ABC  

More than half a million Australians are estimated to have "completely cleaned out" their superannuation savings during the COVID-19 crisis, as Treasury predicts workers will withdraw a total of $42 billion under the early-access scheme. Key points: More than 2.6 million Australians have accessed their superannuation early More than 2.6 million Australians have accessed their superannuation early The initial estimate …

Superannuation early withdrawals near $30b as new financial year sees double-dipping
4 years, 5 months ago

Superannuation early withdrawals near $30b as new financial year sees double-dipping

ABC  

Desperate times have seen many Australians raid their superannuation accounts to the tune of the maximum $20,000 early withdrawal since the coronavirus pandemic struck. Key points: The latest APRA figures show there have been around 2.7 million early withdrawals from superannuation Labor warns there is a "run" on super accounts, with around half a million people draining their balances completely …

Coronavirus superannuation early withdrawal scheme hits $25 billion as new financial year starts
4 years, 6 months ago

Coronavirus superannuation early withdrawal scheme hits $25 billion as new financial year starts

ABC  

The latest figures show up to 2.4 million people have applied for early withdrawal of part of their superannuation, with around $25 billion worth of applications approved by the Tax Office. Key points: ATO figures show 2.4 million "unique applications" for early superannuation withdrawal As of June 28, funds had already paid out more than $18 billion to their members …

Superannuation bosses warn that hackers will again target Government's coronavirus early release scheme
4 years, 7 months ago

Superannuation bosses warn that hackers will again target Government's coronavirus early release scheme

ABC  

The superannuation industry is warning that fraudsters will again target the early release superannuation scheme unless the Federal Government urgently boosts protections. Key points: The scheme was suspended last month after hackers infiltrated the system Industry bosses have written to Treasurer Josh Frydenberg to demand new checks and balances The second tranche of the scheme will begin on July 1 …

How to avoid pain accessing super during coronavirus pandemic
4 years, 7 months ago

How to avoid pain accessing super during coronavirus pandemic

ABC  

Australians didn't need to be asked twice when the Federal Government allowed them to access their super as part of emergency financial measures designed to ease the coronavirus pandemic pain. Here's how it works: If you've already withdrawn $10,000 from your super, put $1,000 back in to your account before the end of June If you've already withdrawn $10,000 from …

Superannuation withdrawals spent on gambling, alcohol, takeaway food: report
4 years, 7 months ago

Superannuation withdrawals spent on gambling, alcohol, takeaway food: report

ABC  

Emergency access to superannuation during the COVID-19 shock has triggered a spending spree for some Australians, who are splashing cash on gambling, alcohol and takeaway food rather than essential household items. Key points: The average person who withdrew super spent $3,000 more in a fortnight than they normally would Around 14pc of that spending went to debt repayments, while an …

Super funds have been battered by coronavirus, but panic is your worst enemy
4 years, 7 months ago

Super funds have been battered by coronavirus, but panic is your worst enemy

ABC  

The year began so well. As a result, according to Super Ratings, the median balanced superannuation fund fell 8.9 per cent in March, while the median growth fund, with its higher exposure to shares, plunged 12.5 per cent. For Australian Super, the average annual return on its balanced fund since inception in 1985 is 9.68 per cent, despite the bad …

Coronavirus support measures see hundreds of thousands of Australians access superannuation early
4 years, 8 months ago

Coronavirus support measures see hundreds of thousands of Australians access superannuation early

ABC  

Hundreds of thousands of Australians have been granted early access to their superannuation savings, totalling $3.8 billion in early payments, Treasurer Josh Frydenberg has said. Key points: The total value of early super accessed by Australians has reached $3.8 billion The tax office has approved close to half a million claims Two weeks ago, more than 600,000 Australians had applied …

Women to be 'severely impacted' by withdrawing superannuation amid the coronavirus pandemic
4 years, 9 months ago

Women to be 'severely impacted' by withdrawing superannuation amid the coronavirus pandemic

ABC  

Australians who withdraw from their superannuation due to the coronavirus pandemic could lose as much as $120,000 in retirement — and women, who retire with almost half as much super as men, may feel dire repercussions in decades to come. Key points: Australian women retire with an average of 40 per cent less superannuation than men A withdrawal of $20,000 …

More than 360,000 Australians apply for early release of superannuation under coronavirus assistance scheme
4 years, 9 months ago

More than 360,000 Australians apply for early release of superannuation under coronavirus assistance scheme

ABC  

More than 360,000 Australians have applied to get an early release of their superannuation under the Federal Government's plan designed to help jobless Australians and those facing financial hardship because of the coronavirus crisis. Treasurer Josh Frydenberg has said the provision, announced as part of the Government's second-round stimulus package, would amount to less than 1 per cent of the …

Half a million reasons to think long and hard before withdrawing your superannuation during the coronavirus downturn
4 years, 9 months ago

Half a million reasons to think long and hard before withdrawing your superannuation during the coronavirus downturn

ABC  

There's an old saying that you shouldn't make short-term decisions with long-term consequences. Sharp rise in unemployment could trigger house price crash The spread of coronavirus across Australia could see unemployment reach about 10 per cent and house prices drop 20 per cent, says one economist. Let's say you are 30 years old, for example, with 35 years left to …

Australians should not have to dip into their super to cope with coronavirus
4 years, 9 months ago

Australians should not have to dip into their super to cope with coronavirus

ABC  

We live in extraordinary times and that calls for extraordinary measures. The move to grant early access to superannuation balances of up to $10,000 this financial year, and the same again next, for those in financial stress sits uneasily with me, although I recognise that my views — like the landscape before us — could alter radically in coming months …

What coronavirus has done to your super — and why you shouldn't panic
4 years, 9 months ago

What coronavirus has done to your super — and why you shouldn't panic

ABC  

Watching the stock market nosedive and freaking out about what it's doing to your super? Key points: The average balanced portfolio has lost 10-12 per cent in the last month Experts say younger workers will have time to recover People nearing retirement urged to consider term deposits, fixed interest securities "It is putting pressure on super," said SuperRatings CEO Kirby …

Five questions about superannuation the Federal Government's new inquiry must ask
5 years, 3 months ago

Five questions about superannuation the Federal Government's new inquiry must ask

ABC  

The government's new retirement incomes review will need to work quickly. In 2014, more than 20 years after compulsory super began, the Murray Financial System Review asked the government to set a clear objective for it, and two years later the government came up with one, enshrined in a bill entitled the Superannuation Bill 2016. The bill lapsed, but the …

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