Queensland has been named as the state tapping into the early super scheme the most, with more than 145,000 people emptying their accounts according to Industry Super Australia.
An analysis of ABS payroll data from the super industry body has shown that around $7.4 billion has been withdrawn in Queensland, with 27 per cent of its residents accessing the scheme – the highest proportion of any state.
Almost 1 million (994,649) applications made by Queenslanders to access their super have been approved, with workers in the Brisbane, Griffith and Moncrieff electorates withdrawing the most.
Industry Super Australia has estimated Brisbane’s average payment was $7,659 with 8,693 individuals emptying their balance, while the average for Griffith was $7,754, with 7,469 accounts being drained.
In Moncrieff, the average payment was calculated to be $7,829 with 6,408 accounts being cleared out.
Bernie Dean, chief executive of Industry Super said the number of people wiping out their savings in Queensland is a “tragedy waiting to happen”.
“The only way to repair the retirement savings of Queenslanders is to lift the super rate,” he said.
“It is critical to helping rebuild savings wiped out and to avoid tax hikes on working people to prop up more people drawing a full pension.”
Similar to Labor ministers, Industry Super has urged for the legislated rise to the super guarantee to continue, as Liberal backbenchers have cast doubts whether next year’s 0.5 per cent rise should proceed.
The increase is already scheduled for the 9.5 per cent rate to reach 12 per cent by 2025.
Rice Warner has said the rise will be necessary for the recovery following the COVID-19 pandemic, particularly to rebuild accounts that have been emptied due to the early release.
Industry Super has calculated that if the increase was ditched, an average 30-year-old man who took $20,000 from their super would either lose $180,000 from their retirement or be forced to work until 74, while an average 30-year-old female would need to work an extra eight years or have $150,000 less at retirement.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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