The finding has come from the monthly Finder RBA Cash Rate Survey, which has consulted 40 experts and economists to weigh in on the Australian economy.
While all of participants had predicted the RBA would hold the 0.25 per cent cash rate on Tuesday, more than half of the economists (15 out of 29) decried early super. But Finder insights manager Graham Cooke had expected more opposition.
“From all that’s been made of the long-term costs associated with early super withdrawal, I’m surprised the number of economists against this move wasn’t higher,” Mr Cooke said.
St George Bank chief economist Besa Deda spoke against the policy, saying withdrawing “negates the compounding effect that benefits those who may need it most in retirement”.
“Additionally, depending on specific investment decisions, withdrawing superannuation in the middle of the pandemic was likely to have resulted in the crystallisation of large losses,” Ms Deda said.
On the other side, Baillieu chief investment officer Malcolm Wood said the scheme was a “low-cost, highly effective policy, while RMIT University economics lecturer Sveta Angelopoulos said people should have access to their funds when there is severe financial hardship.
“Super funds are ultimately the property of the Australians who hold them and individuals are in the best position to assess their own needs and requirements,” Dr Angelopoulos said.
According to the latest APRA data, early super applications appear to be slowing down, with the funds paying $570 million in the third week of August, compared to $600 million the week before.
Treasury estimated the scheme will result in a total withdrawal of $41.9 billion, after it was extended from its original September deadline to the end of the year.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
