Are you thinking of accessing super early?

Early access update 

^{27 July 2020}

The Federal Government has announced an extension to the early access superannuation scheme.
 
Eligible Australians will be able to apply for up $10,000 of their superannuation until 31 December 2020. The original cut-off date was 24 September 2020.
 
Additional information can be found via the government’s latest fact sheet.

Applications for early access can be made via the My.Gov website.

Accessing your super early

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.

^{Estimates are shown in today’s dollars, discounted using a wage inflation rate of 3.5% p.a. Other assumptions are: Starting account balance of $20,000. Starting salary of $70,000 which increases in line with wage inflation. Contributions are made at the Superannuation Guarantee rate (currently 9.5% of salary and allowing for legislated increases to 12%). Investment returns after tax and before fees are assumed based on lifecycle option of 6.4% p.a. to age 50, 6.0% age 50-54, 5.4% age 55-60 and 5.0% age 61-65. Percentage-based fees of 1.3% p.a. to age 50, 1.2% p.a. age 50-59 and 1.1% p.a. age 60-65.  Investment tax of 1.3% to age 50, 1.2% age 50-59 and 1.1% age 60-64.  Combined insurance premiums and dollar-based administration fees are $150 p.a. and this amount increases in line with wage inflation.}

Will my insurance cover through super be affected?

^{Please refer to the update at the top of the page}

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
• Contact us on 1300 655 002 between 8:30 am and 6:00 pm EST/EDT Monday to Friday, or email info@csf.com.au

For more information about early access to super due to COVID-19, refer to the ATO website page and the Treasury fact sheet. You can also contact the Australian Taxation Office on 13 10 20 and read updated Q&As from the ATO. Additional information on how the ATO assess your application is available here. 

If you have questions about your super or would like to book a financial advice appointment, contact us on 1300 655 002 between 8:30 am and 6:00 pm EST/EDT Monday to Friday or email info@csf.com.au

^{Any figures quoted are correct at the time of writing but may be subject to change.}

^{Authorised by Togethr Trustees Pty Ltd (ABN 64 006 964 049; AFSL 246383) ('Trustee') the trustee of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Catholic Super is a division of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Financial advice services may be provided to members by the trustee's related entity.} 

^{Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). The information contained herein is general information only. It has been prepared without taking into account your personal investment objectives, financial situation, or needs. It is not intended to be, and should not be, construed in any way as investment, legal or financial advice. Please consider your personal position, objectives, and requirements before taking any action. Past performance is not a reliable indicator of future performance.}

^{© 2020 Togethr Trustees Pty Ltd. For further information please our contact our Service Centre on 1300 655 002 or visit our website: csf.com.au.}