Less income for members’ golden years under early release scheme

Industry Super Australia (ISA), the peak body representing industry super funds (including First Super), has backed the Grattan Institute’s findings that millions who accessed super early and don’t top up their savings will have less income in retirement. 

Since the temporary early release of super scheme began in April, millions of Australians have received payments, draining billions from super balances. Over 8,000 First Super members have withdrawn super as part of the scheme, with an average of almost $8,500 being paid out between 20 April and 31 July 2020. 

While ISA has concerns with aspects of the Grattan Institute’s modelling, it agrees that the bottom 20% of wage earners will be worst affected after taking their super early. It’s expected these members will lose $3,000 a year in retirement, with the Age Pension failing to offer much of a buffer. 

Read Industry Super Australia’s full press release: ‘Grattan confirms early release double downside of lower retirement incomes and greater age pension burden’. 

Next steps after early super access  

At First Super, our main concern is the wellbeing of our members and their families.  

If your income or work has been affected by the pandemic, you’ll find useful resources and links to financial and other assistance on our Coronavirus: updates and support webpage.  

When you’re ready, and back on your feet financially, there are easy and tax-effective ways to boost your super for the future. Find out more on the ‘Grow My Super’ section of our website.