The Federal Government recently introduced a new condition which allows for early release of super for people who have been financially affected by the coronavirus. Under this condition, you can receive a payment of up to $10,000 from your super in the current, 2019-20 financial year* and a further payment of up to $10,000 in the 2020-21 financial year*.
However, although these measures can offer financial relief now, there are some things you should consider before deciding if it is right for you.
If you access super early, what does it mean in retirement?
If you access $10,000 of your super
If you intend to retire at 65 years old, and you access $10,000 of your super today, below are some estimates of how much less you might have when you retire.
Age | Retirement balance reduced by this amount |
25 | $31,700 |
30 | $27,400 |
35 | $23,800 |
40 | $20,600 |
45 | $17,800 |
50 | $15,400 |
Estimates are shown in today’s dollars and assume an average investment return of 5.5% p.a. and inflation rate of 2.5% p.a.
Will my insurance cover through super be affected?
It depends on how much super remains in your account after you have accessed your super. You need to have enough in your super to cover your insurance costs and other fees.
If you withdraw all of your super, any insurance cover you may hold could be cancelled. If it is cancelled and you would like to apply for cover again in the future you can, but it means you will need to answer health questions and you’ll be subject to approval by the Insurer.
*Applications for a 2019-20 payment must be made by 30 June 2020 and applications for a 2020-21 payment must be made after 30 June 2020 but no later than 24 September 2020.
Should I apply for early access?
As a Catholic Super member, if you meet the eligibility criteria, you can apply to access your super early. This may be helpful for people under extreme financial stress and those who have no other assets or sources of income to draw on.
However, before you apply for early access to your super, you should be aware that a withdrawal now could have quite an adverse impact on the amount you’ll have in your super when you retire. This will primarily be determined by your age, and the number of years you are expected to have remaining in your working life.
Review your super balance
If you would like to review your current super balance, you can access it in the following ways:
- Visit our online portal at csf.com.au/mylife-online and enter your member number and PIN, or
