IMPACTS OF EARLY SUPERANNUATION WITHDRAWAL

1. Increases individual risk to lose life insurance

2. Misuse of Super funds

2.1. It is likely to change the mindset and approach of fund trustees towards shorter term goals

3. loss of business

3.1. Government costs will increase as there is a reducing number of taxpayers within the community and more financial assistance is required especially for the pensioners

3.2. loss of revenue for superannuation industry

4. affects the retirement lifestyle

4.1. Withdrawing super funds, can potentially lead to loss in interest and investment gains which can be substantial over time

4.2. Impacts the future balance between the age pension and superannuation during retirement

4.3. Greater long-term financial vulnerability

5. Disadvantages to future generation

5.1. Creates gender superannuation gap

5.2. increase the level of inequity between generations

5.3. May effect individuals from receiving future government welfare payments