As part of the continued efforts to provide financial relief to those who have been significantly financially affected by coronavirus, the Government is also allowing early access to super savings. If eligible, you could access up to $10,000 of your superannuation until 30 June 2020, and a further $10,000 from 1 July 2020 to 24 September 2020.
While accessing your super may be able to provide short term relief, it’s important to consider how it may impact other areas of your life and finances, both now and in the long run.
Am I eligible to access super early?
The Government is allowing individuals that have been affected by the coronavirus to access their superannuation if they meet any of the following criteria1:
- You are unemployed.
- You are eligible to receive a JobSeeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
- On or after 1 January 2020, either
- you were made redundant
- your working hours were reduced by 20% or more
- your business was suspended or there was a reduction in your turnover of 20% or more, if you are a sole trader.
For the most up to date information regarding early access of super due to coronavirus visit ato.gov.au.
What are the risks of accessing my super early?
Early access of super impacts your retirement savings and will result in a long term cost to the final value of the super savings available to you at retirement.
The impact on superannuation balances will vary based on your individual circumstances, and your Mortgage Choice Financial Adviser can assist you with investigating the options that might be suitable for your own personal situation.
Will accessing my super early affect my insurance?
There could be impacts to your insurance. For example, if you're withdrawing your super early and want to maintain your insurance, you'll need to keep enough in your super account to cover your ongoing premiums. There may be other circumstances which may cause your cover to cease. It's important to speak to your Mortgage Choice Financial Adviser and assess your insurance needs and circumstances before making an early withdrawal from super.
When and how can I apply?
Applications for early release of superannuation will be accepted through myGov website from 20 April, 2020. You can register your interest now by logging in to your myGov account and following the instructions.
How can I be sure that accessing my super is the best option for me?
If you’re facing financial hardship due to the coronavirus, it’s important to be aware of all the relief options that may be available to you. Everyone's situation is unique and now it’s more important than ever to get professional advice when exploring what options may be suitable for you before tapping into your 'retirement' savings. For example, the Government has announced a series of measures to provide financial relief and banks are also continuing to respond to the pandemic with some lenders changing their policies as a result.
Speak with your FinChoice Adviser sooner rather than later when assessing whether or not accessing your super early is the right option for you. And, if accessing your super is the better short term option, your Financial Adviser can work with you to put a strategy in place to get your super back in shape once we're out the other side of this extreme challenge we're all facing.
We’re here to help
In challenging times, good advice from a trusted expert can help you decide the course of action that’s right for you. Contact your local FinChoice Adviser and they can walk you through the options available to you.
For more information about your superannuation & how you can use it, check out our info here.