Qlders set to lose out on retirement, RACQ Bank warns

Queenslanders could be geared for a disappointing and difficult retirement as new data revealed 15 out of the top 20 suburbs for early superannuation withdrawals were from the Sunshine State.

The Courier Mail reported analysis of new data from various Australian Government departments found 994,649 Queenslanders had applied for an early release of their super since April. The study found nearly one third of Queenslanders had accessed the scheme for an average of $7,933.

RACQ Bank spokesperson Lucinda Ross said it was a worrying trend because the huge number of people accessing their retirement funds meant they’d limit their financial position in the future.

“We all know withdrawing from your super could mean you are worse off by tens of thousands of dollars by retirement age, which just shows how tough it is for Queenslanders right now who have made this decision,” Ms Ross said.

“Whether you’ve lost your job or are working fewer hours, having instant access to cash can be the difference between keeping a roof over your head or not, but sadly it could also put you in a tough position later in life when you’ll need to rely on your super.”

Ms Ross said while withdrawing this money could be considered a necessity for some, it was important everyone who made an early withdrawal committed to top up their super when possible.

“It’s undoubtedly the most challenging year many Queenslanders have faced, but don’t let it define the rest of your working and non-working life,” she said. 

“If you’re lucky enough to have a job, do what you can to avoid dipping into your super.

“And if you’re out of work right now, utilise the existing Government support to hang in there, only taking from your super if it’s absolutely necessary. Then, once you’ve returned to full hours or regained employment, make a plan to top up your super through voluntary contributions or partner contributions. Reach out to community organisations and other support networks to get help with any ongoing financial hardship, so you can potentially avoid making further withdrawals.

“It’s really important we balance our long-term financial goals with keeping the essentials covered now.”

To learn more about building your retirement, visit RACQ’s Financial Wellbeing hub.