Thousands of Australians rush to access another $10,000 in super

Cash-strapped Australians have rushed to access their retirement savings early during the pandemic but it has been argued this should have never been allowed in the first place.

Your superannuation is exactly that – your money.

And the run on retirement accounts began again after this week after Australians were given a second chance to dip into their hard-earned retirement savings.

The Federal Government’s early release of superannuation scheme has been a contentious political issue since its rollout during the COVID-19 pandemic, but it certainly hasn’t stopped millions of cash-strapped Australians from rushing in to withdraw money.

Many have argued these savings should only be for retirement and should not be allowed to be accessed now.

From Wednesday eligible applicants who recently suffered a significant financial hit were given the green light to rip out another $10,000.

But within hours of the second tranche being available for access the Australian Taxation Office’s online portal went into meltdown.

July 1 is a very busy day for the ATO because it collides with those rushing to lodge their tax returns for the previous financial year in the hope they will get money back.

But the heavy flow of traffic this week proves how desperate people are to get their hands on what is theirs – and rightly so during a time of crisis.

While superannuation is meant for retirement, easing the burden on the taxpayer now will hopefully keep many people financially afloat for the time being.

But it’s been argued this will result in more people being reliant on the pension come the other end – at retirement – after removing up to $20,000 from their accounts.

Too many greedy super funds have been able to charge millions of Australians fees they have no clue about it.

And it certainly doesn’t help that most Australians couldn’t care less about their super until later in life.

The fund’s top dogs have been able to lap up big salaries and rack in billions in fees hoping members don’t pay any attention.

Up until June 30 2.36 million Australians accessed super under the early release scheme and withdrew $19.6 billion.

The average amount withdrawn is $8220.

This is only a drop in the ocean given there is more than $2.7 trillion in superannuation in Australia.

And now they have until September 24 to access another $10,000.

As to what Australians spend their money on is up to them, whether it be for necessities such as food, electricity and/or rent, or if they blow it on clothes or gambling, this part cannot be controlled.

Ultimately it’s put less burden on taxpayers who are already propping up millions of Australians relying on government handouts including JobKeeper and Jobseeker that could take decades to pay back.

@sophieelsworth