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The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement - ABC News

The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement - ABC News

The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement - ABC News
Aug 10, 2022 2 mins, 33 secs

A modest superannuation balance and the rising cost of living mean the 60-year-old Perth-based cleaner expects to be working for at least another 10 years.

"I have about $150,000 in superannuation, and I'll end up with $10,000 left out of my superannuation after the house is paid for, which isn't a lot to live on after 45 years of working," he told ABC's 7.30. .

What's making Mr Clements even more uneasy is that his superannuation balance is fluctuating daily because of the global economic uncertainty.

"I have a balanced superannuation, so I'm not a big risk-taker," Mr Clements said. .

According to consultancy firm SuperRatings, only three superannuation funds have reported that they made money for their members with balanced investments during the past financial year.

SuperRatings' top 10 balanced super options over 12 months:.

Legalsuper — MySuper Balanced.

However, the Association of Superannuation Funds Australia's deputy chief executive, Glenn McCrea, is urging older Australians not to panic about share market volatility

The downturn in superannuation amounts comes as the government and opposition clash over the level of detail that superannuation funds provide to their members about political donations, marketing and sponsorship expenses

Hairdresser Michaela Marshall-Lawrence, 27, was forced to withdraw $5,000 from her superannuation at the start of the pandemic to keep her salon afloat

"[The $5,000 super withdrawal] was enough that it paid for another month's worth of rent, and I could pay my staff and I could afford to live."

However, withdrawing the money early meant missing out on potentially tens of thousands of dollars of compound earnings across future years, something that concerns Ms Marshall-Lawrence

Data exclusively provided to ABC's 7.30 by the Association of Superannuation Funds Australia shows that, out of the 3 million people who accessed their super early, 1 million were left with less than $1,000 in their super account, while 163,000 people were left with no super at all

Mr McCrea said those who took out money early were mostly single parents, women and those on low incomes, and 44 per cent of applicants were aged under 35

"There's no doubt younger people were the main people to take money out through early release," he said. 

Council on the Ageing chief executive Ian Yates said those who had withdrawn early would find it tougher to fund their own retirement

How superannuation funds spend their members' money is currently under scrutiny before Federal Parliament

Mr Robert said the Labor Government was trying to wind back the Coalition's policy to force funds to itemise disclosure of political donations, marketing, and sponsorship expenses

"The transparency and integrity of superannuation of members' money is being watered down so the Labor government can try and hide what super funds are spending their money on when it comes to political donations, when it comes to football sponsorships."

The government said there would still be a requirement for super funds to disclose payments to industrial bodies, including unions and employer associations, but it would be an aggregate figure and not itemised

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