Finder superannuation literacy expert Pascale Helyar-Moray warned that dipping into super early can have long-term financial impacts. (Source: Instagram\/Getty) <\/p>\n
Millions of Australians say they would raid their superannuation accounts<\/a> to help with current housing and cost-of-living pressures<\/a>. There are limited reasons why Aussies can access their superannuation<\/a> early and experts have warned it can have major impacts on your retirement<\/a>.<\/p>\n The average Australian superannuation balance<\/a> is $172,834, according to the latest Australian Taxation Office (ATO) statistics from the 2022-23 income year. While 40 per cent of Aussies said they wouldn\u2019t touch their super if they had the option to access it early<\/a>, new research by Finder found others would funnel it towards their current money problems.<\/p>\n About 15 per cent said they would use their super to buy a home<\/a> for themselves, while 10 per cent would put it towards easing cost-of-living pressures<\/a>. Another 8 per cent of Aussies would use it to pay down their mortgage<\/a>, while the same amount would spend it on a holiday.<\/p>\n RELATED<\/p>\n Finder superannuation literacy expert Pascale Helyar-Moray OAM told Yahoo Finance the research showed many Aussies still saw the value in preserving their super for retirement<\/a>, despite being under pressure.<\/p>\n \u201cA large portion of Australians clearly recognise that super is designed to fund life after work \u2013 not to solve short-term money problems,\u201d she said.<\/p>\n \u201cBut the fact that one in 10 would use it to cover everyday expenses shows just how tough the cost-of-living crunch<\/a> is right now.\u201d<\/p>\n A further 7 per cent said they would use their super to buy an investment property, 5 per cent would buy a home for their kids, 3 per cent would buy a new car and just 2 per cent would pay down credit card or personal loan debt<\/a>.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/p>\n You can generally access your super when you retire and reach 60 years old, or when you reach 65 even if you haven\u2019t retired yet.<\/p>\n There are limited circumstances when you can access your super early<\/a>. These include compassionate grounds to pay for expenses like medical treatment, funeral expenses and preventing you from losing your home.<\/p>\n Other reasons include terminal medical conditions, being unable to work due to incapacity, and severe financial hardship. The maximum amount that can be withdrawn for financial hardship is $10,000.<\/p>\n More than $1 billion in compassionate superannuation withdrawals were actioned in the last year by at least 50,000 people.<\/p>\n Story Continues <\/p>\n During the pandemic, Aussies could also withdraw up to $20,000 of their super as an emergency support measure<\/a>. Some 3.05 million people dipped into their savings, totalling $37.8 billion.<\/p>\n The Coalition previously proposed allowing Aussies to take up to $50,000, or 40 per cent, of their super to buy their first home ahead of the federal election<\/a>.<\/p>\n Helyar-Moray said dipping into your super early had major long-term financial consequences<\/a>.<\/p>\n \u201cRaiding your retirement savings might solve a problem in the short term, but it could leave you significantly worse off in the future,\u201d she told Yahoo Finance.<\/p>\n \u201cThe Morrison government\u2019s pandemic-era scheme, which allowed financially strained Australians to withdraw from their super early, will have huge implications for those who withdrew from their retirement savings.\u201d<\/p>\n Super Members Council analysis found that a 30-year-old who withdrew the maximum $20,000 would have $93,600 less at retirement<\/a>.<\/p>\n Along with impacting your future retirement balance, the Australian Taxation Office (ATO) has noted that people need to be wary of how early access to super could impact your insurance coverage and certain social security benefits.<\/p>\n Helyar-Moray urged Aussies to boost their balances if they could and to consider salary sacrificing.<\/p>\n \u201cEven $50 a month over thirty years would make a substantial difference to how comfortable their lifestyle will be once they reach retirement,\u201d she said.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n