Growing number of Australians raiding their super early
Australians are accessing their superannuation at high rates, with the money used to fund health services like dental, IVF and weight loss.
However, it is also being used for home renovations and new cars, prompting concern among financial counsellors.
The Australian Taxation Office (ATO) will let people take their money out early if they prove they can't pay a crucial cost any other way.
READ MORE: Treasurer vows to crackdown on early super access
A growing number of people are raiding their superannuation. Nine
Dentists like Dr Alex Fibishenko have told 9News that they are seeing it more and more.
"Patients who have pain can access their super and actually treatment which they otherwise might not be able to afford," he said.
In just four years, the number of people using super early to pay medical costs has jumped from fewer than 23,000 to more than 30,000 per year.
The money is usually taxed at 22 per cent and in the long run, the cost can be much worse.
Xavier O'Halloran, director at Super Consumers Australia, said people needed to be "really careful" when accessing their super early.
"If you are in financial trouble, there is a financing counselling special that is available to all Australians for free," he said.
"You could call up the National Debt Helpline if you are in financial trouble.
"They could guide you through different options available for you.
"There are things out there other than accessing your superannuation early if you are finding yourself in financial difficulties now."
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O'Halloran said people should also be aware of the scams that are popping up across the sector on the rise.
"People have to be particularly alert to that. If people are approaching them and saying, 'Hey, I can help you get your superannuation out early', treat it with suspicion," he said.
Anyone thinking of applying to the ATO through the system is encouraged to talk to a financial counsellor first.
The national debt helpline can be reached on 1800 007 007.
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