Young people dominated COVID super withdrawals last year

By now, we are probably all familiar with the government’s COVID-19 early release superannuation scheme that was initiated last year. Targeted as a stimulus and hardship measure, this scheme enabled eligible adults to withdraw up to $20,000 from their superannuation accounts for the majority of 2020.

This was a controversial measure, as the purpose of the superannuation scheme is to provide an adequate income in retirement for Australians. And without placing a burden on the Age Pension system.

Since super works by harnessing compound interest, early withdrawals can have a far larger effect on a workers potential retirement balance than just the…