Nick Marvin joined Mike on The Brekky Show to share about the superannuation initiative that kicked off today (20th April). This new initiative means some people can have early access to their super funds. But you must meet at least one of the following criteria:
- You are unemployed or eligible to receive a job seeker payment, youth allowance, parenting payment, special benefit or farm household allowance.
- On or after 1 January 2020 you were either made redundant or had working hours reduced by 20 per cent or more.
- Sole traders must have suffered a fall of 20 per cent or more in turnover.
You can apply through the ATO office to see if you are eligible. Those eligible can withdraw up to $10,000 from their superannuation prior to July 1 and another $10,000 after that date.
However, this is NOT financial advice and you should definitely seek professional financial advice first. Speak to your advisor to see what the best option is for you. Remember, withdrawing super early will affect how much your fund earns over the years, so it’s not just a matter of taking $20,000 off the top of your retirement fund. For example, a 40-year-old could lose a potential $80,000 that they could’ve earnt by retirement age.
Have a listen to the chat below: