Thursday, 11 June 2015

More and more Aussies accessing super funds early

I guess that's what happens with rising levels of poverty, currently at 14% of Australians according to the latest OECD analysis. It's only logical and not at all surprising that more people will be running to their funds for help when the going gets really tough. Like when you end up on Newstart in your late 40's as David did. When your only income is a pension that doesn't even cover the rent. Not to mention the huge mortgage payments on overpriced housing.
The number of Australians being granted approval for early access to their superannuation is increasing – and so is the amount of money that they’re withdrawing. 

New Department of Human Services’ (DHS) data shows that, so far this financial year, 11,700 of the 16,000 applications for early access to superannuation have been approved. The total amount released so far this year is around $148 million. 

The approval rate of 73 per cent in 2014–15 compares to a 63 per cent rate in 2013–14. The amount of money individual applicants have received has risen from around $12,300 to $12,600. 

In most cases, fund members can only be given premature access their super if they satisfy certain conditions of release, such as reaching retirement age (or deciding to retire earlier than age 65), severe financial hardship, compassionate grounds, being diagnosed with a terminal illness, being temporarily incapacitated, being a non-resident wishing to leave Australia permanently, or deciding to take benefits as a lifetime pension or annuity. more