To help you make informed decisions, it’s important you’re aware of all your options and think about your short and long-term financial needs.
1. What extra financial support might be available to you at this time?
The Government is providing financial assistance to Australians impacted by COVID-19 through income and household support payments. Many banks and utilities companies are also putting additional financial hardship support in place to help people get through the next six months.
Some places to check are:
READ MORE: COVID-19 FINANCIAL RELIEF RESOURCES
- moneysmart.gov.au – COVID-19 Financial Assistance
- treasury.gov.au – Coronavirus support for individuals and households
- serviceaustralia.gov.au – Coronavirus Financial support
- your bank – some banks are offering to suspend repayment up to six months for home loans, personal loans and credit cards
- state governments and tenancy boards can offer information on rent relief and your rights
- Utility companies – speak to your electricity and gas providers’ financial hardship department, as you may be able to set up a payment plan during this time.
2. Consider the long-term impact on your retirement savings
Super is a long-term saving scheme. It works well because by keeping your money invested it earns compound interest, which is essentially ‘interest’ on your ‘interest’.
AustralianSuper modelling indicates that a 25-year-old who withdraws $20,000 now could have $64,400 less super by the time they retire at 67*.
Use the ‘Early access (COVID-19)’ calculator feature to see how withdrawing super now could reduce your retirement savings.
*Estimates by AustralianSuper. Assumptions: Member age is as specified, retires at 67, withdraws $10,000 this financial year and $10,000 next financial year from their super, with long term investment returns of 6.5%pa net of investment fees and taxes. Estimates are expressed in today’s dollars discount at wage inflation of 3.5%pa. The case study is provided for illustration purposes only and isn’t a representation of the actual benefits that may be received or the fees and costs of a particular financial product. Investment returns are not guaranteed.
3. Check if your insurance will be impacted
Insurance is an important part of most members’ overall financial security. If you want to maintain your insurance cover, check you have enough money in your super account to keep paying insurance costs after you have accessed your super.
If you aren’t sure how much your insurance is costing you, log into your account, or use our app.
You can also use the AustralianSuper insurance calculator to get an estimate of your weekly cost. This is only an estimate so if you’re unsure please contact us.
Can I claim Income Protection benefits if I’ve lost my job?
Income Protection doesn’t apply to loss of income from business closure or lack of shifts. Income Protection can only provide monthly payments to help you get by if you become ill or injured (at work or outside of work) and can’t work temporarily.
For details on insurance cover, see the Insurance in your super guide for your division. All members can apply for insurance cover at any time.