Samuel Clarke knows withdrawing his retirement savings early is not ideal.
Key points:
- Australians are allowed to access up to $10,000 of their superannuation this financial year under the Government’s coronavirus assistance scheme
- Business owner Samuel Clarke has withdrawn funds from his super, saying “it’s survival money”
- Data shows that a 30-year-old who withdraws $10,000 now could end up with $25,000 less super when they retire
But the digital strategist, whose business is down about 60 per cent, says the cost of a young family and unrelenting business overheads have left him with no choice.
“The main bank account is overdrawn and we’ve had to move funds into another account just to buy groceries,” the father of two children under three told 7.30.
Mr Clarke is now one of 900,555 applicants who have been approved for a release of up to $10,000 of their superannuation under the Federal Government’s coronavirus assistance scheme.
Under the Government’s hardship scheme, people who have taken a financial hit because of COVID-19 can apply to access $10,000 from their super this financial year, plus another $10,000 next year. It is for people who have been made redundant or had their hours reduced, and sole traders who have seen a drop in income of 20 per cent or more.
Biggest super withdrawal ever
The Government expects around 1.7 million Australians to withdraw around $28 billion of super — the biggest and most sudden wit