An increasing number of people are using their superannuation to pay off their mortgages, according to the latest research from the Australian National University.
Under compassionate grounds, the Australian Prudential Regulation Authority (APRA) can approve early access to superannuation to allow people to pay off a loan on their residential home.
Between 2001 and 2006, the value of funds approved for early release by APRA increased by 428 per cent.
During the same period, the number of applications for early release increased by 119 per cent.
Australian Institute of Superannuation Trustee chief executive Fiona Reynolds said the amount of super being released under the early release guidelines was a concern.
"Struggling borrowers who dipped into their super could be robbing Peter to pay Paul," she said.
"In many cases, using superannuation to get out of financial trouble may simply delay the inevitable and also puts that person's future financial security at risk," Reynolds said.
The research found that a growing number of people have been encouraged to access their superannuation to pay mortgage debt, rather than negotiating other alternatives.
