As Coronavirus (COVID-19) continues to cause uncertainty in the Australian community, Vision Super’s priority is the health and safety of our staff, members, employers and the community.
We understand the devasting impact the virus has had on all working Australians, including those working in local government and water. We remain committed to supporting and helping those in need.
Our Contact Centre is here if you need help with general super enquires or Coronavirus-related issues. If you need help understanding the right investment option for you, you can discuss your personal risk profile with a financial adviser who will be able to recommend the option that’s best suited for you – there’s no charge for this single topic service, and it may help you feel more comfortable when markets are volatile.
We know some members are doing it tough, and you may be thinking of applying for early release of some of your super.
In response to the Coronavirus pandemic, the Government has enabled affected individuals to access some of their superannuation in 2019-20 and 2020-21 prior to 24 September 2020 when the measure ends.
To apply for early release you must be unemployed or eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance. You can also potentially access some of your super early if you were made redundant on or after 1 January 2020, or your working hours have reduced by 20% or more.
Different rules apply for sole traders and temporary visa holders. You can find all the details in the government factsheet.
Before you apply, we’d encourage you to ask yourself if there are other options – talk to your landlord or your bank about your rent or mortgage, and talk to your utility providers about any hardship provisions they may have in place. We’d encourage you to consider how the early release will impact your retirement savings, because $20,000 in your super today is likely to be worth more than $20,000 by the time you retire. Why? Because of compound interest. Compound interest is interest that includes “interest on the interest” previously earned. This is where interest earned is added to the balance, so that when interest is applied next it’s calculated on a larger balance. For members with a lifetime of work in front of them, the difference could be significant. You should also consider how this may impact insurance, this is because if your super balance falls to zero, you may also lose your insurance you have with Vision Super.
The information in this article is general advice and not tailored to your circumstances, if you would like to book an appointment with a Vision Super financial planner to receive personal advice, complete the online form or reply to my email and I will arrange an appointment for you.