Thursday July 2 2020
Hundreds of thousands of young Australians have wiped out their retirement balances under the government’s early release of super scheme, heightening fears the scheme could lead to a future generation left languishing on the pension.
New analysis from Industry Super Australia (ISA) estimates 395,000 people under-35 have eroded their super balance. ISA estimates that about 480,000 Australians across all age groups could have wiped out their super, even before the second tranche opens.
In March the government broke open super’s preservation rules and allowed Australians who had lost their jobs or had hours reduced to access $10,000 in super and a further $10,000 from July 1.