Drawing out your super may not be so super

By Peter Lynch | June 15, 2020

Now here’s an interesting fact as we consider the debate about taking out $10,000 from our super accounts: 66 per cent of Aussies want to hear more from their super fund about their investments.

MetLife checked the mood of 1,283 Australians aged 18 to 65.

Unsurprisingly, half thought the pandemic had had a negative impact on their personal finances. But the surprise was that almost 60 per cent of Super members wanted general market updates and insights, including how investment teams are responding to the pandemic.

So we’ve gone from being a country where most don’t even know their super balance to a nation now very keen to understand now their retirement savings are being handled.

Which is great news for the Super industry, currently facing a crisis as tens of thousands withdraw savings thanks to the voernment’s early release scheme.

Super is losing over $200m a week because the JobKeeper payments don’t include guaranteed super contributions.

Over three million workers are getting the $3,000 a month JobKeeper payments – but they aren’t getting benefit contributions. The Australian newspaper reckons that adds up to a $470m fortnightly loss to the sector.

The most recent figures from financial regulator APRA show that super funds have so far paid out 1.63 million claims totalling $12.2 billion.

Most were young people who rarely check their super balances and consider themselves a long way from retirement. And some have been seen to be using the money for online gambling and risky investment schemes.

The arguments against withdrawal have rarely been heard.

Another hit is expected in the coming weeks as consumers are offered the chance to take out another $10,000 on July 1.

Some, like the Association of Superannuation Funds of Australia, are advocating that the JobKeeper payments should include a super component so workers don’t suffer a hit to their retirement.