‘Tragedy waiting to happen’: $200M of funds wiped out
MORE than $200 million in superannuation was paid out to people across Maranoa to combat the financial impact of coronavirus, according to astonishing new research by Industry Super Australia.
For thousands of people, every single cent of their retirement savings is now gone.
The Federal Government allowed Australians to access their super early during the height of the pandemic, prompting close to 27,000 applications across the electorate, of which Warwick is a part.
Approval was granted to 25,000 of those people, giving them an average payout of about $8000.
More than 3500 people in Maranoa completely cashed out their super fund, a move which was described as a "tragedy waiting to happen" by ISA chief executive Bernie Dean.
To put it in perspective, a 30-year-old who withdrew $10,000 could have up to $41,000 less when they hit retirement age, leaving a massive gap that, for some, would require active workforce participation until 74 years of age.
The ISA is calling on the Federal Government for a legislated super rate rise to 12 per cent, to assist residents recover their losses before it's too late.
"It is critical to avoid tax hikes on working people to prop up more people drawing a full pension," Mr Dean said.