Industry Super Australia has undertaken state-by-state analysis which revealed that almost $600 million had been drained from the superannuation fund balances of the Tasmanian workforce, with one in five workers using the early access scheme since it was first instigated back in March.

It’s a “looming tragedy” for those who have been forced to dip into their savings, according to Industry Super Australia chief executive Bernie Dean.

He said these workers will not only retire with less, but they’ll be more reliant on the pension.

According to modelling from the overarching body, a 30-year-old who withdraws $20,000 now could lose out on $80,000 in potential savings by the time they hit retirement age.

It’s led Mr Dean to double-down on requests for assurance that the legislated lift to the superannuation rate from 9.5 per cent to 12 per cent by 2025 will remain.

“ISA analysis shows that if the super rate increase were cut, an average 30-year-old man who took $20,000 from their super would either lose $180,000 from their retirement or be forced to work until 74, while an average 30-year-old female would need to work an extra eight years or have $150,000 less at retirement.”

The CEO said the scheduled increase to the rate is “the only realistic way workers can make up the difference – ditch the super increase and we will be saddling the next generation with a whopping pension bill”.

“The youngest Australians would face a shocking double whammy they can’t afford if they have to repay the debt government has taken on during this crisis and then pay for our retirement on the pension.”