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July 7, 2020

3 Reasons Not To Touch Your Super

Category: Manage Finances
I read with some dismay the numbers coming in from the first $10,000 released under the super early release scheme.
With more than 1.4 million applications approved so far, more than 460,000 of these were people under the age of 30. While the scheme was created to help people in dire financial need, the analysis shows that more than 40% of people spent on additional purchases such as leisure, entertainment, cafes and personal care.

While I understand that when you suddenly come into some money that you did not expect, you like to treat yourself. That’s human nature, and at a time like this, where COVID-19 has had such a big impact, it’s no wonder that people want to spend on things that you make you feel good in the here and now.

But before the next $10,000 becomes available in July, I would like people to think of the bigger picture, and consider not taking any more money from their super, if they can avoid it.

Here’s why:

1. Taking $10,000 out now for someone under 30 could mean losing $50,000 in retirement.

Double that for the second $10,000 and its $100,000 less you have in retirement. While that time may seem far away, it will come.

2. It’s putting stress on “future you”.

A friend once told me that hustling for money when you are over 60 is like running with a stocking tied around your ankles – it’s hard, cumbersome and damn near impossible. With all the uncertainty in the world today, don’t you want to think of a future where you don’t have as much pressure around money?

3. There is no certainty in our financial future any more with government spending.

Who knows how many more pandemic and catastrophic events may happen in the next 30 years? Better to shore up your own future with savings intended for your retirement, than gambling that the existing system will still be in place.

The age old question of now vs later is a big one. And if you have already taken your first super early release, maybe it’s time to think about how else you can make money, and leave yourself an insurance policy on future you.

After all, you are responsible for your own financial future.

Until next time,

Vanessa

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Each day I wake up excited to inspire everyday people to open up and take control of their money, regardless of their history, goals, or savings amount. About Vanessa >>

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Authors

  • Vanessa Stoykov
    Vanessa Stoykov

    Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.

  • Kathy Skantzos
    Kathy Skantzos

    Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.

  • Shayne Sommer
    Shayne Sommer

    Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.

  • Antoinette Colbran
    Antoinette Colbran

    Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.

  • Michael Crooks
    Michael Crooks

    Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.

  • Kim Payne
    Kim Payne

    Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.

  • Rebecca Pritchard
    Rebecca Pritchard

    Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.

  • Antony Perring
    Antony Perring

    Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.

  • Julie Hyde
    Julie Hyde

    Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.

  • Joshua Pennell
    Joshua Pennell

    As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.

  • Sid Lal
    Sid Lal

    Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.

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    Lou Johnson

    Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.

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    David Rae

    Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.

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