COVID-19: The pros and cons of accessing your super early

As part of its COVID-19 (Coronavirus) economic response, the Federal Government is allowing eligible individuals temporary early access to part of their super. However, it's important consider your future before you decide and consider all the options available to you.

If you're experiencing financial stress as a result of COVID-19, accessing some of your super could provide short-term financial relief.

More information on COVID-19 and Temporary Early Access to Super scheme here.

Accessing your super early is not without its risks. Super is designed to fund your life in retirement, so withdrawing money from it now could affect your retirement lifestyle.

As with all financial decisions, you need to think through the risks and rewards to help you make an informed decision. 

Below we look at some pros and cons of accessing your super early.

You will have access to funds where your income from employment has been impacted if you don't have an alternative.You will be taking money out at the reduced value due to the recent market downturn and giving up opportunity for gains from any future market recovery.
Payments are tax-free, unlike other types of withdrawals for people under age 60.Models have shown that withdrawing up to $20,000 now could mean up to $95,696 less at retirement.*
 You may not be able to apply for early release due to severe financial hardship in the future if your financial situation deteriorates further.

Accessing your super early could result in any insurance currently in place being cancelled. You should carefully consider this loss of insurance before making any withdrawal from super.

Please refer to COVID-19 and your insurance and the LUCRF Super Insurance Guide for more detailed information about when cover ceases and the steps you need to take if you wish to maintain your insurance cover.

Important: If you provide false or misleading information in your application, you could face penalties of more than $12,000 for each false and misleading statement. More information here.

You should carefully consider if dipping into your retirement savings is a worthwhile option — and, you may instead wish to consider the Australian Government’s range of support options for individuals during the COVID-19 pandemic. 

While current economic conditions present their challenges it’s important to keep in mind that your super is a long-term investment. For help and advice that is tailored to your specific circumstances, you should speak to a Financial Adviser. 

If you’d like to speak to one of our Financial Advisers, please use our online booking form to request an advice call back.

If you want to understand more about the impact of COVID-19 on your finances and the investment markets visit our dedicated COVID-19 FAQs.

Scenarios modelled by ISA Pty Ltd. See assumptions for more information.

This is general information only and has been prepared without taking into account your personal financial situation, objectives or needs. General information is not advice. You should assess your personal financial situation before making a decision about LUCRF Super. To help you decide, we recommend you read our current Financial Services Guide (FSG) and Product Disclosure Statement (PDS), both available at or by calling 1300 130 780.