Retirement
APRA releases final cost of early access to super scheme
The financial regulator has revealed how much superannuation Aussies have released from their retirement savings, as the unions highlight the long-term impact on workers.
APRA releases final cost of early access to super scheme
The financial regulator has revealed how much superannuation Aussies have released from their retirement savings, as the unions highlight the long-term impact on workers.
As part of the government's pandemic support, Australians under financial duress were enabled access to up to $20,000 in their super savings, in two tranches between 20 April 2020 and 31 December 2020.
But the unions are now questioning the scheme's long-term impacts, after APRA revealed that workers withdrew more than $36 billion from their retirement savings.
According to APRA, a total of 3.5 million initial applications were approved across the full period of the scheme, including 1.4 million repeat applications by those financially strained by the pandemic, putting the average payment at $7,638.
Repeat applications were for an average amount of $8,268 while initial applications were for an average amount of $7,402.
Commenting on APRA's findings, the ACTU explained that vulnerable Aussies, who didn't qualify for the government's JobKeeper wage subsidy, were most significantly impacted by the early access to superannuation scheme.
Casual employees, who worked for an employer over a period shorter than 12 months were barred from JobKeeper entirely, subsequently making hospitality workers some of the hardest hit.
As a result, according to the ACTU's data, 700,000 workers were forced to completely empty their superannuation accounts, with 80 per cent belonging to the below 35 age bracket.
“A 30-year-old emptying their account by withdrawing $20,000 will be nearly $80,000 worse off in retirement," said ACTU assistant secretary Scotty Connolly.
"This government has created a legacy of poverty by implementing a program designed to shift the burden of responding to this crisis from government to individual."
But the ACTU identified even further problems, pointing to the scheme's tendency to disproportionately affect women.
“Women currently retire with 47 per cent of the amount of superannuation as men, and being forced into withdrawing from their retirement savings will widen this divide,” Mr Connolly said.
According to the union, the average Aussie will run out of super 10 years before they die.
“Workers urgently need to rebuild their super from this hit in order to retire with dignity, and the Morrison government must re-commit to the already legislated increase of 12 per cent for the superannuation guarantee,” Mr Connolly concluded.
RELATED ARTICLES
About the author
About the author
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
