Early superannuation claims pass $25 billion
Australians are continuing to dip into their retirement savings at growing rates due to ongoing fears over the coronavirus pandemic.
Banking
Don't miss out on the headlines from Banking. Followed categories will be added to My News.
Ongoing fears of further economic decline is pushing more Australians to access their retirement savings prematurely.
Latest figures by the Australian Prudential Regulation Authority (APRA) show more than $25 billion has been siphoned from the country’s near $3 trillion wealth pool, with the Australian Taxation Office being hit with 3.6 million claims since its inception in April.
The Federal Government implemented the early release of superannuation as a financial assistance measure for Australians who had become unemployed or experienced a reduction in working hours as a result of the coronavirus pandemic.
Super fund members are able to request up to $10,000 in both the 2020 and 2021 financial years.
APRA anticipates the number of total claims will cost the sector $28 billion.
For the week ending July 12, 581,232 new claims were lodged, with 471,383 of those claims from people who had already received super payments within last financial year’s tranche.
AustralianSuper has been sapped of $3.35 billion, the highest payout compared with any other fund.
The country’s largest industry fund has paid 433,992 members an average payment request of $7716.
Nearly 350,000 Sunsuper members have siphoned $2.5 billion from the major fund, while retail workers fund REST has dished out $2.25 billion to 306,085 members.
Major hospitality fund Hostplus has incurred a $2.17 billion hit to its funds under management, with 336,129 requesting hardship assistance.
Cbus has paid 1.5 billion to nearly 180,000 members, and health services fund HESTA has dished out 1.2 billion to its members.
Originally published as Early superannuation claims pass $25 billion