Expert cautions against a super mistake

MILLIONS of Australians eligible to access their superannuation savings early simply do not have enough money in their accounts to withdraw the maximum amount allowed.

Official figures from the Australian Taxation Office showed 3.5 million Australians have balances of less than $20,000 in super and most are younger Australians.

The data analysed by Industry Super Australia showed the following:

FOR those aged under 30, 72 per cent have less than $20,000.

FOR those aged 30-39, about 25 per cent have less than $20,000.

The Federal Government announced new rules amid the COVID-19 outbreak that allows eligible Australians to tap into their super accounts to make ends meet.

Treasurer Josh Frydenberg dubbed it the “people’s money” and said they would be allowed to touch their own hardearned cash.

Applicants can access $10,000 this financial year and $10,000 next financial year, tax free.

It is estimated this will help $27 billion in super flow back into the hip pockets of Australians – less than 1 per cent of the $3 trillion in super held nationally. ISA’s chief executive officer Bernie Dean said funds would do all they could to help those members who needed financial assistance but he warned of the dangers.

“But members need to tread carefully,” he said.

“For millions the government early release scheme could allow them to wipe out their super balance meaning they have to start again.”