Estimating the impact of early withdrawals from super
If you’re considering accessing some of your super to deal with the financial impacts of COVID-19, you can use the MoneyBrilliant Plan For Retirement feature to estimate your retirement savings with and without withdrawals and compare the difference.
First, make sure you have an estimate of your retirement savings without any withdrawals. This will provide a baseline to compare how your retirement savings decrease when you make an early withdrawal.
Second, create a negative Other Contributions to calculate what your retirement savings could look like after withdrawing money from your super. In Plan For Retirement, access your retirement savings projection, select Edit Projection and select Other Contributions:
- In Contribution Type, select Before Tax – Concessional Contribution (Salary Sacrifice)
- In Frequency, select Once-off
- In Amount, type in your withdrawal amount (between 1 – 20,000) and then select the minus sign (“-“) on your keyboard
- In At Age, enter your age at the time you expect to make the withdrawal (for most of us, this will be our current age).
Note, if you are using the MoneyBrilliant iOS app, the -/+ sign option does not appear on your keyboard until after you have selected the Contribution Type and Frequency options above.
You can do one withdrawal or 2 withdrawals if your age changes over the 6 month eligibility period.
You can now see how much your retirement savings balance might decrease by making an early withdrawal.
What you need to know about early access to super (and other options)
Thinking about the impact on your retirement savings is just one consideration you should make. You can read more about making an early withdrawal from your super and the other options that might be available in this blog article.
If you are thinking of making an early withdrawal from your superannuation fund we suggest you contact your financial adviser or your fund to discuss your options.
This summary has been prepared by MoneyBrilliant Pty Ltd (ABN 34 153 932 766, AFSL 492711, ACL 493068). The information in this summary is of a factual nature only. We are not suggesting or recommending that you take any particular course of action in relation to any financial product or service. It does not take into account your personal circumstances or objectives. If you need financial advice or taxation advice you should seek advice from a licensed financial adviser or tax agent. You may also be able to access additional information from the websites of the Australian Securities and Investment Commission (ASIC) and the relevant product providers.