Close to a million workers closed or drained their super through the government’s early release scheme, and one lobby group wants to see cash handouts used to close the gap. Analysis conducted by
Depleted super needs cash boost: AIST Lachlan Maddock 25 January 2021
Close to a million workers closed or drained their super through the government’s early release scheme, and one lobby group wants to see cash handouts used to close the gap.
Analysis conducted by the Australian Institute of Superannuation Trustees (AIST) shows that nearly 1 million workers under 35 have either closed their super accounts or now have less than $1,000 in super due to the early release scheme. Some 73,000 Australians have also lost insurance cover linked to their account.
“While the long term impacts of COVID on the retirement savings are still uncertain, evidence shows that the financial burden of lost retirement savings will most heavily impact those least able to afford it – those already experiencing disadvantage and the many Australians who were already facing a retirement savings shortfall,” said AIST chief executive Eva Scheerlinck.
AIST
Nearly one million young workers closed or drained their super through COVID early release
Nearly one million young workers under the age of 35 have either closed their super accounts or now have less than $1000 in super as a result of the COVID Early Release Scheme, according to a new analysis by the Australian Institute of Superannuation Trustees (AIST).In addition, over 73,000 Australians lost insurance cover linked to their account.
The analysis of the government Scheme – which closed at the end of 2020 after allowing those experiencing financial hardship withdrawals of up to $20,000 of their super over two tranches – showed that young workers were twice as likely to close their super accounts compared to members over 35. In both tranches, women were more likely to have their account closed as a result of early release payments, compared to men in the same age cohort.