The super funds taking the multi-billion dollar hits from early release
The rate at which people have lined up to access their second entitlement to early release superannuation was nearly three times that of first-timers.
What is more, the early release scheme has already cost AustralianSuper over $2.5 billion, while Hostplus has seen nearly $1.7 billion in outflows, REST has registered $1.745 billion in outflows and Sunsuper has racked up just over $1.9 billion.
That was one of the most important elements revealed in the latest Australian Prudential Regulation Authority (APRA) superannuation early release data which covered the closing days of the Government’s first round early release regime and the 1 July start of the second tranche.
APRA noted that out of the 511,000 applications received, 165,000 were for members applying for early release for the first time (initial application) and 346,000 were for members applying for the second time (repeat application).
What is more, the APRA data pointed to there being no slackening in the average amount people were seeking to withdrawal, noting that the average amount applied for by those making a repeat application was $8,904.
Equally importantly, the APRA data confirmed that just 10 funds continued to do the heavy lifting with respect to early release, making 1.68 million payments worth a total of $12.5 billion, or close to 65% of all payments made.
The average payment from these funds was $7,427, with 96% of payments made within five days.
Those top 10 funds continue to include AustralianSuper, REST, HostPlus, Cbus, HESTA, MLC, AMP, BT, Sunsuper and CFS.
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