Majority of Aussies who took super out early don’t regret it, survey says

A majority of Aussies who were able to access their super early say they do not regret the decision, a survey claims, as One Nation and one senior Coalition senator call for changes to the system.

The survey from financial comparison site Finder, which quizzed 1011 Aussies, found that of the 24 per cent who made the move to take money out of their super before retirement, 57 per cent said they viewed it as a positive decision.

However, the other 43 per cent regretted the move.

Finder did not indicate how old the survey respondents were, or whether they had reached or were close to retirement.

The survey found the most common reason for taking super out early was to pay for medical treatment.

Finder finance expert Sarah Megginson warned even though early withdrawal may seem appealing, especially amid sudden financial pressures, it may cost far more in the long run, comparing it to “stealing from ‘future you’“.

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“Every dollar you withdraw today is a dollar that misses years [or] decades of compound growth,” she said.

“What feels like a short-term solution can leave you significantly worse off in retirement, particularly if you access your super while you’re still relatively young.”

The findings come as One Nation calls for super laws to be relaxed to make it easier for Aussies to access their retirement savings early, with a fierce political debate between the opposition parties and the federal government growing.

Australians can generally only take money out of their super when they turn 60 and retire, or when they turn 65 years old, even if they are still working.

There are grounds for early withdrawal, including significant financial hardship, compassionate grounds, and terminal illness, although there are strict rules around those exemptions.

Finder’s survey showed 11 per cent of respondents were considering taking super out early.

Pauline Hanson has called for super laws to be eased so workers can access their money to assist with cost-of-living pressures.

“A lot of Australians are doing it tough now and struggling to pay off their mortgages,” Hanson said on Sunday.

“In some ways, I feel that you should give them their money now, and let them help them with the cost of living.

“It is their money; they’ve they’ve sacrificed it in lieu of pay. So, in a lot of cases, people want it.”

Liberal senator Andrew Bragg called superannuation one of Australia’s greatest policy failures since federation, claiming it is a “strange but illiberal experiment” that results in Australians having a “loss of liberty” in a speech to the National Press Club.

The Coalition still backs superannuation and the current system, with deputy leader Jane Hume repeatedly clarifying that Bragg’s comments were his opinion.

“I do think that superannuation is highly valued by Australians, it’s not something that you need in your working life, it’s something you need in your retired life,” she said.

Treasurer Jim Chalmers hit back at the claims made by Hanson and Bragg, saying the Coalition and One Nation would endanger millions of Aussies financial safety in retirement.

“Andrew Bragg wants to scrap your super and Pauline Hanson’s backing him. Labor built super. I won’t let them tear it down,” Chalmers said in a text message to some Labor supporters.

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This has led to a stoush between the trio, with the One Nation leader claiming Chalmers is “full of s--t.”

“One Nation doesn’t support scrapping super, we just think people should be able to use their super when in financial distress instead of losing their home,” Hanson said in a post on social media.

Bragg also responded to Chalmers’ claims with a post of his own: “We want Australians to have the best retirement. Making sure the housing and super systems work together is sensible.

“Labor is afraid of debates which give people more choice and control over their lives.”