Which Australians accessed super early
DIPPING INTO SAVINGS HAS LONG-TERM IMPACTS,ACTS SO WEIGH UP YOUR OPTIONS
TIME is running out for cash-strapped Australians still considering dipping into their retirement savings before the year’s end.
But new data has shown that men and residents in NSW and Queensland were among those who were more likely to dip into their retirement savings.
Latest Australian Taxation Office Statistics has revealed details of the 2.7 million applicants who accessed their retirement savings in the first tranche up until June 30.
It found the following:
• 2.7 million applicants withdrew super from funds totalling $19.9bn.
• 22,000 applicants withdrew money from self-managed super funds totalling $215m.
• 42 per cent of applicants had a reduction to their income.
• 17 per cent were unemployed. • 17 per cent were eligible for government benefits.
• Of all applicants, a majority (45 per cent) had an income range between $37,001 and $90,000.
• 24 per cent had an income range between $18,201 and $37,000.
• Applicants were from the following locations: New South Wales 30 per cent, Queensland 25 per cent, Victoria 23 per cent, Western Australia 11 per cent, South Australia 5 per cent, Tasmania 2 per cent, ACT 1 per cent, Northern Territory 1 per cent.
When the scheme opened in April, 100,000 applications a day were being received, falling to
40,000 a day in May and
26,000 a day in June.
Intrust Super chief executive
Brendan
O’Farrell
(inset) says that for anyone still considering accessing their super up until the end of f this year, they need to ensure they meet the eligibility criteria.
“With December 31 fast approaching, reassess your income both current and future, in addition to the eligibility y requirements, before making aking any decision to access,” he says.
“If you do decide to access, ensure your contact details are current with your super fund and the withdrawal doesn’t impact any insurance cover.”
Latest figures up until October, show that 2.87 million applicants have withdrawn $35.6bn.
Eligible applicants can still withdraw up to $10,000 tax-free until the end of the year.
But the Australian Institute of Superannuation Trustees chief executive officer Eva Scheerlinck says there’s been a “tapering off in applications” app because people p had “drained t their accounts in round o one of the scheme.
“We know that t there are people su suffering financial har hardship, but unfort unfortunately the scheme is not without a long-term impact for the individuals who access it,” she says. “Fund data shows that many vulnerable Australians who have accessed their super due to financial hardship were already worse off to start with.”
Ms Scheerlinck urged anyone still considering dipping into their super to carefully weigh up their options before doing so.