How to get your super back on track

With more than two million Australians registered to make an early withdrawal of $10,000 from their superannuation, RACQ has shared its top tips for regaining your retirement.

RACQ Bank spokesperson Lucinda Ross said Australians were setting themselves up to be thousands of dollars worse off if they did not take action.

“The early superannuation withdrawal scheme has been a lifesaver for many Australians struggling in the wake of a pandemic and global recession,” Ms Ross said.

“Unfortunately, we have seen many people use the extra cash to purchase luxury or non-essential items. Data crunched by advisory firms Alpha Beta and Illion highlighted 64 percent of early-withdrawers had increased their spend on clothes, furniture, restaurant food, gambling and alcohol.

“While short-term gains can have a positive impact on someone’s immediate financial position, it’s important to keep in mind how it’ll impact ‘future you’.”

Ms Ross said Australians needed to make financial choices that protected their long-term goals and wellbeing.

“Making an early withdrawal from your super could mean missing out on tens of thousands of dollars when you decide to retire,” she said.

“It’s really important those who have made an early withdrawal don’t set themselves back. They should consider making a plan to contribute extra funds to their superannuation when they’re in a position to do so.

“This might mean taking advantage of the government’s co-contribution scheme by making voluntary deposits into your super. This is where the Federal Government supports your contribution by also tipping money in to super for low to middle income earners. You could also look at salary sacrificing into your super fund when you regain employment, or have a discussion with your partner about them making contributions on your behalf while you’re unemployed.”

To find out more about early super withdrawal or how to improve your financial wellbeing, visit RACQ’s Financial Wellbeing hub.