Super double dippers are asking for $973 more than first timers

author-avatar By on October 12, 2020
Super double dippers are asking for $973 more than first timers

Photo by Kate Trifo on Unsplash

The latest superannuation withdrawal data indicates 1.3 million people have made a repeated withdrawal request, for an average of $8,374.

This is $973 more, on average, than those who made their initial withdrawal application.

This is according to the Australian Prudential Regulation Authority's (APRA) report released today.

In total, out of 4.5 million applications, 1.3 million have been repeat applications since inception, or about 29%.

The proportion of double-dippers was greater in the week ending 4 October, with about 31,000 applications in total, with nearly 12,000 of those being repeat applications, for an overall value of $241 million. 

However, the average value of repeat withdrawals was $7,301 in the week ending 4 October, about $8 less than initial applications.

The super fund that has paid out the most since inception has been Australian Super, at about $4.726 billion.

In total, $34.1 billion has been drained from superannuation accounts since the program took off in late April.

Need somewhere to store cash and earn interest? The table below features introductory and ongoing savings accounts with some of the highest interest rates on the market.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
SELF MANAGED SUPER FUND LOAN

SMSF 80

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
SELF MANAGED SUPER FUND LOAN

SMSF 80

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
FixedMore details

SMSF 80 Fixed 5 Years (Purchase) (New Customer)

VariableMore details

Liberty SuperCredit SMSF (LVR < 60%)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given Rates correct as of October 19, 2021. View disclaimer.

Under-performing super funds put on notice

APRA's deputy chair Helen Roswell has issued a warning shot to underperforming superannuation funds.

"The industry has been on notice for years that chronic underperformers need to improve or hand the keys over to someone who can drive better outcomes for their members," she said.

"Self-interest has no place in the board room, and this will continue to be a focus of APRA’s work to lift governance practices across the industry."

Ms Roswell made these remarks at the Australian Institute of Superannuation Trustees' (AIST) 'Online Chairs Forum' on Monday afternoon. 

Such governance practices include issuing best-practice mandates, tighter scrutiny on superannuation boards, and clamping down on maximum terms for directors. 

"If these boards are failing to ask themselves the question 'Would my members be better served in another fund?' we certainly will be, and will also be requiring action to move toward the exit lane," Ms Roswell said.

The remarks come after Treasurer Josh Frydenberg outlined in last week's Budget announcement a range of new superannuation reforms, including the provision that new employees will not have a new super account automatically created for them every time they start a new job, as well as annual performance tests for funds.


Latest Articles

author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy