A new academic study has confirmed that the Covid-era early release of super scheme - which allowed largely unfettered access to retirement savings - was a mistake that should never be repeated.
It is estimated up to 1 million Australians wiped out their entire super savings. Industry Super Australia estimates a 30-year-old who took out $20,000 would be $80,000 worse off at retirement. ISA modelling also shows there are long-term impacts for the taxpayer - as for every $1 taken out during the scheme adds up to $2.50 to the aged pension - a bill every Australian could pay through taxes.
This scheme reinforces the need to legislate an Objective of Super that puts the concept of preservation at its core.
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