Ramping up ATM withdrawals was the biggest change in the spending behaviour of 2.6 million Australians who withdrew money from their super under the former Coalition government’s access scheme.
He argues that such schemes undermine the benefits of compounding interest and end up costing Australians a lot more in retirement savings than the amount they withdraw at the time.Industry Super Australia CEO Bernie Dean said the study showed the need for such legislation.
While withdrawals under the Coalition’s pandemic super access scheme were capped at $10,000, they would leave users roughly $120,000 worse off in retirement, said the study by George Washington University’s Steven Hamilton, ANU’s Tristram Sainsbury and Harvard University’s Geoffrey Liu.
Gambling also jumped by nearly $300 among users of the scheme, while credit card repayments increased by nearly $200 and by-now-pay-later purchases by $97.
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