Early super access used for mortgage payments

22 April 2021
| By Laura Dew |
image
image
expand image

Making mortgage payments and paying household bills were the two main criteria used by people withdrawing their superannuation early.

According to the Australian Bureau of Statistics (ABS), as of September 2020, 29% of people who utilised the early access to super scheme used their super to pay off their mortgage while 27% used it to pay household bills.

Other categories included paying off personal debt (15%), payments related to vehicle (6%) or adding to savings (13%).

Another 12% of people said they used the funds for ‘other’ reasons.

The average single withdrawal was $7,728 for the first tranche and then $7,536 in the second opportunity while those who accessed the scheme twice, withdrew a total average of $17,441, the ABS said.

A total of around $36 billion was withdrawn by super members during the available period with the average age of people utilising the scheme being 38. The largest withdrawals were seen by the largest super fund AustralianSuper, where members withdrew $4.9 billion, and Sunsuper among the most-affected super funds.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 4 months ago
Kevin Gorman

Super director remuneration ...

1 year 4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 4 months ago

Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transf...

23 minutes 35 seconds ago

The International Monetary Fund (IMF) has issued a sobering assessment of the global economic landscape in its latest World Economic Outlook, dramatically revised after D...

2 hours 59 minutes ago

Growth from the listed company’s key businesses has propelled Generational Development Group to new milestones in the three months to 31 March....

3 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND