Superannuation

Super house deposits a silly idea


Jarrod Sierocki

David Koche and Edwina Bartholomew butt heads on the boomer-millennial housing debate. Courtesy: Sunrise

Raiding super for a house deposit is no way to treat retirement savings.

IT sounds like a tempting idea — let young Australians withdraw their superannuation early to use the money as a house deposit.

They get into their own home earlier than they otherwise would, still have many decades to save up their super for retirement, and Australia’s housing affordability problems maybe ease a little, right?

Wrong.

Fresh debate about the super-for-houses proposal was sparked last week after it was reported that the Federal Government is considering it as part of a housing affordability package for its May Budget.

It was quickly attacked by the financial services sector and the federal Opposition, and rightly so.

Put simply, it’s a super silly idea, and ignores the massive dent that would be put in the future wealth of Australian savers.

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Read the full article at: http://www.news.com.au/finance/superannuation/using-superannuation-for-a-first-home-deposit-is-a-dangerous-idea/news-story/6fdd8f630c73884af81e490af834b36c

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