Retirement
What industries are withdrawing their super early?
Following the Morrison government’s recent amending of the superannuation rules, members working in certain industries have higher rates of applicants looking to withdraw their super early.
What industries are withdrawing their super early?
Following the Morrison government’s recent amending of the superannuation rules, members working in certain industries have higher rates of applicants looking to withdraw their super early.
As part of the stimulus package to help support the economy, the Australian government will allow members impacted by the COVID-19 pandemic to withdraw $10,000 in the 2020 tax year and another $10,000 in 2021 should they require support.
The hospitality, arts, recreation, manufacturing and wholesale trade industries are understood to be those withdrawing their super early.
AMP received 52,379 applications from clients in the first two weeks since the scheme launched, returning approximately $370 million of superannuation savings to clients.
Close to one in five AMP clients working in the hospitality industry has applied for the withdrawal during the first two weeks.
Lara Bourguignon, AMP’s managing director for superannuation, retirement and platforms, said AMP’s focus was supporting clients in hardship and ensuring they receive funds efficiently and securely.
“We fully support the government’s early release package and we’re pleased to provide our clients with quick access to their funds. The volume of applicants shows how many Australians are doing it tough, and we’re committed to helping them,” Ms Bourguignon said.
“It’s not surprising the highest rates of applicants work in industries where employment has been most directly impacted, including hospitality, arts and recreation.”
AMP’s research also found the average age of its applicants is 40, with 66 per cent under the age of 44, and with 70 per cent of withdrawals being from members with balances of $50,000 or less.
The average withdrawal amount for applicants is slightly less than what the government allows, with members taking $8,300.
The highest number of applications were received on the first and second Mondays, albeit the run rate of applications has slowed, with 30,503 in week one and 21,876 in week two.
John Perri, AMP’s technical manager, superannuation, said while early access to superannuation is one benefit, the government has also offered additional support.
“Those people who have been made redundant, stood down or had their hours reduced, can apply for the enhanced JobSeeker payment, which includes the new $550 per fortnight coronavirus supplement, but should check first if their employer was applying for the JobKeeper subsidy, and if it would apply to the individual,” he said.
“The JobKeeper subsidy of $1,500 per fortnight is paid to eligible employers to support the people employed as at 1 March 2020 who are retained in employment, and this payment is available until 27 September 2020.”
nestegg has previously reported the impact of releasing superannuation early.
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