Superannuation

Super savings used to reduce debt


Jarrod Sierocki

David Koch explains the steps needed to ensure a smooth ride into retirement

Aussies are dipping into their super savings to help fund holidays, renovations or pay down debt.

A GROWING number of cash-strapped Australians are withdrawing lump sums from their superannuation savings to splash out on home renovations, holidays, medical bills or to clear debts.

Despite super being designed to be drip-fed throughout a person’s retirement years, latest figures revealed many retirees are dipping into their retirement savings to improve their home, clear credit card balances or personal loans or even get significant dental work done.

Jarrod Sierocki

Many Australians are racking up credit card debts and then using their super later in life to clear money owing.Source:istock

Latest figures from the Australian Bureau of Statistics has found the amount of eligible retirees withdrawing lump sum payments has more than doubled in a decade.

In 2013-14, 376,300 retirees — those aged 55 and over — made lump sum wit…

Read the full article at: http://www.news.com.au/finance/superannuation/a-growing-number-of-retirees-are-dipping-into-their-super-savings-to-pay-off-debt-or-fund-holidays/news-story/a89ef3bdd93b605195ee6f881f4d8979

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