Industry SuperFunds will work to ensure members under severe financial stress due to the economic impacts of the Coronavirus have access to their super in line with the government’s recently announced early access scheme.
The COVID-19 pandemic has created extraordinary times and ISA acknowledges the government’s need to take the extraordinary measure of loosening the restrictions on early access to superannuation as part of its financial support package.
Industry Super Australia (ISA) is ready to work with the government on the all-important detail of how the scheme can be rolled out to prevent unintended impacts on a member’s savings and their super fund.
For some members their short-term financial survival might rely on the ability to access the up to $20,000 form super that the scheme allows.
But accessing superannuation early should be approached with extreme caution and only as a last resort.
ISA analysis shows a 25-year-old who accesses the full $20,000 available under the scheme could lose more than $95,000 from their retirement balance. A 30-year-old who accesses the full amount losses almost $80,000 and a 40-year-old would have $54,000 drained from their eventual retirement savings.