The value of expert advice
Under a new government scheme, some Australians can now cash out a portion of their super - to help ease financial hardship caused by COVID-19. But before you draw down your retirement savings, here's what you need to know.With the impacts of COVID-19 being felt across Australian businesses, many Australians are facing an unexpected loss or drop in their income and other financial setbacks.
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That's why the Australian Government has stepped in with a range of measures, to provide much-needed financial support during this difficult period.One of these measures is new super access rules, which will allow some Australians to withdraw up to $10,000 of their super before 1 July 2020, and another $10,000 in the new financial year. The amount taken out of super will be tax-free.
Depending on your circumstances, this may sound like a simple financial solution. But accessing your super early also carries some risks. Because super is designed to pay for your retirement, any decisions you make now could impact on your retirement lifestyle down the track.
Who is eligible?
To be eligible for early super access, you must one of the following requirements: you are unemployed. You are eligible to receive a JobSeeker payment, Youth Allowance, parenting payment, or other special benefit, or. on or after 1 January 2020, either: you were made redundant your working hours were reduced by at least 20 per cent, or if you are a sole trader, your turnover was reduced by at least 20 per cent.
If you're eligible and wish to withdraw super, you can apply to the Australian Taxation Office (ATO) directly through the MyGov website.
The impact on your savings
If you withdraw some of your super now, it not only reduces your balance by this amount but will have a bigger impact on your retirement savings over the long term. This is because super accumulates compound interest - that is, earning interest upon interest.
Compound interest is a powerful tool for building your super balance, but, on the flip side, it also amplifies the impact that of any withdrawal.
For example, a 40-year-old who withdraws $10,000 from super now will actually end up with around $17,500 less in their savings when they reach the retirement age of 67. For a 30-year-old, this difference would be over $21,500.
You can use the MoneySmart calculator to calculate the potential impact on your super savings, based on your current age and intended retirement age.
In addition to your savings, you should also consider the impact on your insurance. If you have life insurance through your super fund, you must leave enough in your account to cover your insurance premiums - otherwise you will lose your cover completely.
What it might mean for your retirement
A lot of people are doing it tough at the moment and urgently need financial relief to pay for essential living expenses, such as food and rent or mortgage payments. But if you have a choice, it's worth taking a long-term perspective - even if your retirement is years off.In Australia, it is estimated that a couple will need $640,000 in savings to fund a comfortable retirement, while a single person will need $545,000. Many people put off thinking about their retirement until they are approaching the end of their working life.However, as with any long-term investment, the more you have in your super now, the better off you will be when the time comes to retire. Although dipping into your super may not seem significant, it could make the difference between retiring when you want to - and having to delay it for several years.
We are living in unprecedented times - and every one of us will be affected differently by COVID-19. Given these challenges, it can be very hard to know whether you are making the right financial decisions. That's why it's worth seeking the advice of an expert, who understands your retirement goals and super strategy.
Your financial adviser can help you review your financial situation and weigh up all available options, including other forms of government support. That way, you can get peace of mind that you're making the best choices - now and for the future.
Genevieve Lawton, Capital Partners Private Wealth Advisers
Nationals M.I.A.
In your article, Nats face a crowded political landscape (29 June), Ron Boswell shows just how embarrassingly out of touch he is.
Australians know the Nationals have been Missing In Action for some years and the void they have left behind is rightly being filled by parties that care about regional and rural areas - One Nation is leading the pack.
On the issue of "my" High Court challenge to Queensland's border closure, the court hearings are well underway, initiated by me and already putting pressure on the Palaszczuk Queensland Labor Government to the benefit of millions of Queenslanders, including disgruntled Nationals supporters.
It's a shame that the Nationals have sat back and done virtually nothing on these crippling border closures, which have affected countless businesses and hundreds of thousands of everyday Queenslanders.
I also have repeatedly raised the matter of Australia's dairy industry, which is losing countless farmers annually and for which I twice introduced proposed laws aimed at protecting their livelihoods and incomes. The bills unfortunately failed due to Nationals senators voting them down along with their Liberal mates.
Is Mr Boswell proud of the Nationals' failure to support such a vital traditional Australian farming industry?
One Nation is also leading the fight against the Greens, which has no interest in the bush and is doing all it can to hamstring farmers and their abilities to clear land, secure their water and access affordable electricity. One Nation also fights the Greens' attempts to destroy coal mining. These issues are important to the bush and ones I'm sure wavering Nationals voters would wish the do-nothing party would also fight for.
One Nation has also raised other key issues recently, including the fact that "all lives matter" and exposing truths about Aboriginal deaths in custody, as well as pushing a hybrid Bradfield Scheme - all of which the Nationals senators voted against.
In addition, One Nation recently forced the Nationals to support our call to rule out an appeal to the Federal Court decision that the 2011 Live Export Ban was unlawful. The Nationals initially refused to rule out such an appeal.
Mr Boswell is of course trying to falsify facts to boost the dwindling support for the Nationals, who have proved that they are no longer the party of the bush and would rather cozy-up to their city-based Liberal big brothers.
Your story importantly highlighted what is a glaring symptom of the Nationals' change of allegiances to the city. The bush is constantly in battles for survival on many fronts and the Nationals have been MIA, so it is no wonder that the void they have themselves left behind is being filled by One Nation, whose actions in the Parliament and in public prove that it does care for rural communities.
One Nation will continue rolling up its sleeves to step into the fight for everyday Australians, including for all those who have been abandoned by the Nationals.
Senator Pauline Hanson,
Senator for Queensland
Leader of One Nation
New data shows booze-loving nation still drinking at risky levels
This week we saw the release of new data from the Australian Institute of Health and Welfare showing many Australians have drinking habits that are putting them at risk. We also saw that Australians turned to alcohol during the peak of COVID-19 lockdowns, with more than 1 in 10 (14 per cent) reporting an increase in alcohol consumption.
We know it has been an uncertain and difficult time for many of us, so we want to make sure people in NSW have the information and support they need to put their health first.
While alcohol may feel like a normal part of our culture and the way we socialise, celebrate and wind down, many people don't know that nearly one in five of us are consuming alcohol at levels that put us at risk of harm. Alcohol is linked to increased risk of seven types of cancer including cancer of the breast, bowel and mouth and nearly 3,500 cancer cases can be attributed to alcohol consumption each year.
The good news is, research has shown that if all Australians stuck to the current alcohol guidelines, we could prevent 30,000 cancer cases over the next 25 years. That's why we're urging people across our state to re-think how much they are drinking and consider healthier alternatives to manage stress. We know it's not always easy, so we recommend picking up the phone and calling a loved one for support, getting out for a walk in the fresh air, or catching up with friends over a coffee rather than a drink.
If you do choose to drink, make sure you drink within the guidelines and try to have some alcohol-free days every week. Try swapping alcoholic drinks for fresh smoothies and juices, or adding fresh or frozen fruits to water or soda to make delicious and healthy drinks.
Clare Hughes, Nutrition Unit Manager, Cancer Council NSW