Dental costs spark record surge in super withdrawals
More than 33,000 Australians withdrew an average $26,500 last year, mostly for dental work.
Dental costs are the main driver of a dramatic surge in early super withdrawals. More than double the number of Australians are tapping their superannuation compared to before COVID's temporary release scheme, up 126 per cent.
More than 33,000 people were approved to withdraw an average of $26,500 last financial year. Dental treatment far outpaced other reasons, including general medical procedures, weight loss and IVF.
A record $1.4 billion was paid out on compassionate grounds overall. The government warns it will crack down on practitioners who pressure patients to withdraw super for cosmetic procedures.
Financial experts caution that withdrawing money now could cost far more later: a person withdrawing $20,000 at age 30 could be $93,000 poorer in retirement.
- 33,000 Australians
- Approved last financial year
- $26,500
- Average withdrawal amount
- Up 126 per cent
- Increase in withdrawals
- $1.4 billion
- Record compassionate payout
Why it mattersWithdrawing savings now for immediate costs could leave Australians short when they retire.
AustraliaMillions of Australians may see smaller retirement funds as cost-of-living pressures force early super access.
✓ Claims checked against the source. checked 2 h ago
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