Average early release below $10,000

11 May 2020

The Association of Superannuation funds of Australia (ASFA) has estimated the average early release for financial hardship withdrawal is around $8,000, as some applicants withdraw only what they need rather than the maximum of $10,000.

As of close of business 7 May, ASFA estimated 1,175,000 individual payments totalling $9.4 billion had been made.

Funds had processed 655,00 applications in week one, 290,000 in week two and 250,000 in week three.

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Up to 95 applications had benefitted from straight-through processing and only triggered modest amounts of exception handling, but some funds had experienced higher levels.

Preliminary estimates indicated close to 98% of applications were paid within five working days and only a small number had been rejected due to fraud concerns or because an invalid bank number was supplied.

Dr Martin Fahy, ASFA chief executive, said: “Funds have worked cooperatively with government and regulators to change systems to process this unprecedented volume of transactions and ensure early release financial hardship payments have been made quickly and safely”.

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Withdrawing only what they need? Nope. Withdrawing only what they have. The $8K average reflects the fact that many younger, part time, and non resident workers will have less than $10K in their superannuation. The average second tranche withdrawal after 1 July is likely to be even less, as low balance accounts will have been cleaned out already.

Spot on. I’d like to see the figures as a percentage of overall member balances not just a dollar figure. Follow it up with overall account closures too, that’ll be the real litmus test to see what’s going on. I wonder if iPhone and MacBook sales will peak for next quarter once everyone gets their cash...

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