Nearly 2.5 million Australians are likely to access the early release of super before 30 June and there could be nearly as many again requesting it after the new financial year, according to a report from the Association of Superannuation Funds of Australia (ASFA).
The ‘Experience to date with the early release of superannuation’ report found Australians under 35 had accessed the scheme in the greatest numbers, while Queensland, WA and Northern Territory residents applied by most.
The maximum of $20,000 available over two tranches per employee under early release exceeded the total maximum payments per employee for JobKeeper, which was $19,500 but only for six months.
Over 20% of the labour force and 15% of the total of individuals with a super account were expected to receive early release payments.
The report also noted that in 2017/18, women aged under 35 had a total of $53.5 billion in super while men had $69.8 billion.
Compulsory super had resulted in employees under 35 having additional savings approaching $100 billion in total, which was an average of $22,000 per person.
ASFA chief executive, Dr Martin Fahy, said: “The erosion of retirement balances through the early release scheme reinforces the need to move as soon as possible to a Superannuation Guarantee rate of 12% in order to provide adequate retirement savings for individuals, particularly women and younger Australians”.