Melbourne 11 May,2023(TIE) The Australian Retirement Trust, responsible for managing more than $240 billion in superannuation, has reported a significant increase in early super withdrawals on compassionate grounds.
These withdrawals, which can only be made under specific circumstances, have risen by 68% compared to the previous year. One of the reasons for early withdrawal cited by the Australian Taxation Office is making payments towards home loans or council rates to avoid losing one’s home.
According to Anne Fuchs, the head of advice at the Australian Retirement Trust, the fund received around 600 requests for compassionate withdrawals in March alone, with an average payout of approximately $22,500. The largest number of claims came from people aged between 30 and 50 years old.
This trend may suggest that many Australians are struggling to keep up with soaring mortgage interest rates, leading them to resort to early withdrawals from their superannuation.