The Conexus Institute, Actuaries Institute and Super Consumers Australia have collaborated to produce an Information Sheet addressing early access to super.
As you are aware the Government is allowing eligible individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21.
A challenge for super funds is how best to assist their members be informed on early access to super. One specific challenge for super funds is estimating the potential long-term impact of withdrawing from super on a member’s retirement.
It is important that super funds provide guidance which is balanced and that any calculations are produced on a consistent basis with other related information provided to members.
On Firday ASIC released an FAQ which details some guidelines around the calculation of estimated retirement impacts relating to early access.
The Information Sheet is designed to be consistent with ASIC’s FAQ. It contains estimated retirement impacts which have been calculated in a manner we believe to be consistent with Class Order [CO 11/1227], the basis on which many funds provide retirement projections to their members in annual statements. It also details additional information we consider relevant to consumers.
The Information Sheet is an open resource available to be used in full or part by super funds.
David Bell, executive director of The Conexus Institute: “We’ve enjoyed collaborating with the Actuaries Institute and Super Consumers Australia to make good quality information available to super funds on early access to super. We hope super funds find this open source Information Sheet valuable.”
Tim Jenkins, Convenor of the Superannuation Practice Committee, the Actuaries Institute: “Consumers have been provided with a very wide range of projections illustrating the estimated impact of early access to super on their superannuation balances at retirement. By utilising an existing class order provided by ASIC, and expressing estimates in today’s dollars, we believe we are assisting funds provide their members with more meaningful estimates.”
Xavier O’Halloran, Super Consumers Australia: “When weighing up whether to access your super early it is a good idea to balance your whole household’s financial needs now and in retirement. You should also consider your insurance needs, as early access may leave you without enough savings to continue paying for insurance premiums in super.”
View the Information Page here.
Media Release 16/04/2020.
The Conexus Institute David Bell 0417 431 624 David.Bell@theconexusinstitut e.org.au
Actuaries Institute Tim Jenkins 0414 887 137 email@example.com
Super Consumers Australia Xavier O’Halloran 0415 823 607 firstname.lastname@example.org om.au