Should people access their super early?

Tuesday 7th April 2020 Justin Cleveland

There have been stories of less-than-scrupulous landlords encouraging people to withdraw super to pay rent, something ASIC has come out strongly against. There’s a bigger question, however, around if people should be taking money out of their super at all.

Ian Yates“One of the tragedies of the GFC was that people crystallised their losses by taking their diminished funds out of their super accounts,” says Council on the Ageing CEO Ian Yates.

“They then had no way of growing them back and at the same time they lost the multiple tax advantages you get from having your savings in a superannuation account.

CHOICE Policy and Campaigns Adviser Patrick Veyret warns that accessing your super should be a last resort.

“It will only be in very rare circumstances that a financial adviser recommending early access of superannuation is doing so in your best interests.”

Super Consumers Australia released modelling that found that withdrawing $20,000 now could leave a person who is 30 some $30,000 worse off at their retirement.

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