‘Misguided policy’: Early super withdrawals to cost future governments and taxpayers more than $100 billion
SYDNEY, 17 August 2020: The Morrison government’s decision to grant Australians financially affected by COVID-19 access to their retirement savings will come at a significant cost to future Australian governments and generations of taxpayers, new financial modelling by Australian ETF provider BetaShares reveals.
BetaShares estimates that the $30 billion that has already been withdrawn from superannuation funds as of 29 July will cost Australia’s retirement system between $100 billion and $130 billion over the coming years.
Australians have already withdrawn $29.4 billion in retirement savings between 20 April and 26 July 2020, already surpassing Treasury’s initial total estimate of $27 billion. The total amount withdrawn appears to be showing no signs of slowing which has prompted the Federal Government to revise this forecast to $42 billion.
Read more...