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In the height of the COVID-19 pandemic, the Government made temporary changes that enabled individuals affected by coronavirus to have early access to part of their super savings (which is now closed).

If eligible, individuals could access up to $10,000 of their super before 1 July 2020 and a further $10,000 by 31 December 2020. The Australian Prudential Regulation Authority (APRA) reports that approximately 4.8 million applications were received resulting in $36.4 billion being released from members’ super accounts to help people through the financial stress caused by the pandemic1.

If you’re one of our members who accessed your super early as part of this scheme, you’re probably wondering what impact it will have on your retirement savings and what can be done to recover. The good news is, it probably doesn’t take as much as you would think to rebuild your super and return it to the position to it would have been in.

We used our Super and Retirement Modeller to crunch the numbers to show how much extra contribution is needed to recover from a $10,000 early withdrawal at different ages in the table below2:

Impact of $10,000 early super withdrawal in 2020
At age Estimated reduction in balance at age 67 (today’s dollars) Weekly after-tax contribution required to recover the reduction
20 -$34,216 $7
30 -$26,180 $8
40 -$20,032 $10
50 -$15,327 $15

So based on these numbers, someone who made an early super withdrawal of $10,000 at age 30 would recover their future retirement benefit at age 67 by simply contributing an extra $8 per week to their super (less than the cost of two cups of coffee a week). For someone that made a $10,000 withdrawal at age 40, the extra contribution  needed to recover at age 67 would be $10 per week.

To find out the impact small changes that make a big difference to your financial future check out our Small change, big savings calculator.

If you’re looking to make additional contribution to your super there are plenty of options available. You can start by exploring the contribute page on our website or just get in touch with us.



We’re here to help

If you have any questions about rebuilding your super or making extra contributions, just contact us. Give us a call on 1300 368 891send us an email or drop by for a chat.

1. Australian Prudential Regulation Authority, https://www.apra.gov.au/covid-19-early-release-scheme-issue-36 accessed 21 October 2021.

2.  In today’s dollars calculated using the Mercy Super and Retirement Modeller available at mercysuper.com.au. Assumptions used: retirement age 67, balanced investment strategy with 6.0%/6.4% p.a. pre/post retirement return, administration fee 0.25% p.a., insurance premium $1,000 p.a., wage growth 3.2% p.a.