![]() Superannuation should only be accessed as a last resort: purely for survival. The effects will be damaging at every level but may be compounded depending on the age of the individual. To avoid the vulnerable being taken advantage of in what is already a perilous situation, governments need to clearly articulate the purpose and circumstances in which individuals would be allowed to access their superannuation to finance their first home. Already, unscrupulous real estate agents are taking the liberty of advising investors and first home buyers that they should obtain access to their superannuation and get into the market so as to not miss out on any “bargains”. ![]() Our failure to do so means we may well see severe impacts in the coming years. ![]() This is an extraordinary measure by any standards and should have been accompanied by an equally cautious warning that such a move is only to be exercised in the most exceptional circumstances. The Australian government has already taken the desperate step of allowing people access to their retirement funds provided they can demonstrate they were made redundant or are suffering from financial hardship due to COVID-19 in the last two years. This will have twice the disastrous effect on our economy – the pension system will collapse and house prices will be hyperinflated. Now, the Coalition has proposed to allow early access again as an election promise to afford houses. With COVID-19’s disastrous impact on the economy, one common measure offered by various governments as part of their stimulus package was temporary early access to retirement funds which had a significant negative implication on superannuation funds. The Coalition could lose votes across the board. Those following the financial markets and superannuation closely will not vote for this, younger generations will find it a band-aid solution and not sustainable and it burdens our ageing population. The Coalition could lose votes due to the seriously dangerous proposal to allow early access to retirement funds. ![]()
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