With so many of us facing financial uncertainty during this unprecedented time, early access to our super can provide some financial relief to those in need. But, is this a wise move?
WHAT CHANGES TO SUPER HAVE BEEN ANNOUNCED?
In light of the current situation, the Australian government has announced that anyone affected by the coronavirus can gain early access to up $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21, able to be accessed from mid April 2020.
In light of the current situation, the Australian government has announced that anyone affected by the coronavirus can gain early access to up $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21, able to be accessed from mid April 2020.
WHO IS ELIGIBLE?
To access super early, those affected by the coronavirus must have been:
To access super early, those affected by the coronavirus must have been:
- Made redundant
- Had their working hours reduced by 20% or more
- Be a sole trader, where their business has been suspended or there has been a reduction in turnover of 20% or more
SHOULD YOU CONSIDER ACCESSING YOUR SUPER EARLY?
Although this new measure does provide an additional level of financial security for those impact by the coronavirus, we urge all of our community to view dipping into super as a last resort. By removing funds from your retirement savings, you’ll have less money working hard for you in your super when markets recover.
Although this new measure does provide an additional level of financial security for those impact by the coronavirus, we urge all of our community to view dipping into super as a last resort. By removing funds from your retirement savings, you’ll have less money working hard for you in your super when markets recover.
If you are considering accessing your super early, please get in touch with us and we can discuss alternative income support measures available to you during this difficult time.