16 July 2020
What effect does withdrawing from Super have during COVID-19?
On March 22 this year, the Federal Government announced a raft of stimulus measures to assist people who had been affected by COVID-19.
One of these measures was allowing people who had been affected to apply for an early release of their superannuation.
A decision to withdraw funds could make a big difference to your retirement savings over the long term, especially if you don’t have a plan in place to make up for the withdrawals.
For those that are younger, on smaller incomes and have smaller balances, withdrawing $10,000 can have a major effect, even over an extended period in the workforce.
For example, if a 24-year-old couple, with a total super balance of $60,000 and earning $60,000 each, withdrew a total of $20,000 over two years, it could make a difference of more than $100,000 in retirement.
It is always important to understand what the effect on your personal situation is by making these types of decisions.
If you have recently made a decision to withdraw funds, talk to us about what you can do to ensure you make up the short fall.