Industry superannuation fund Rest has warned members from using the Federal Government’s early super release proposal unless all other avenues are exhausted.
It would also have no COVID-19 exclusions for members with death, total and permanent disability (TPD), or income protection cover.
Vicki Doyle, Rest chief executive, said the Government had introduced other important initiatives for financial assistance and it was encouraged to consider those options first.
“Accessing an important long-term investment like your superannuation now, when markets are down, should always be a last resort,” Doyle said.
“Members with already low balances who withdraw their superannuation funds when markets are low could be worse off in the long run.
“They will be left with no retirement savings, and potentially no insurance if their balances go down too low or to zero.”
Rest’s active investment approach meant over the past couple of years it had taken steps to help protect members’ accounts from market shocks, such as this.
“Importantly, this also means our members are well placed to reap the benefits when investment markets eventually recover,” Doyle said.
“Rest has extensive fund assets including cash, and other liquid assets, and we are comfortable about managing our illiquid assets such as property and infrastructure.
“We are well placed financially to support the Government’s initiative when these measures become available in mid-April.
“We will continue to do everything we can to support our members during this difficult and uncertain time.”