Joe Hockey wants our children to access their super early…but which would we prefer? 10



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Treasurer Joe Hockey seems to have opened up a can of worms with his suggestion that Australians could dip into their super more than once in their lives – specifically to buy their first homes.

For those of us with adult children, they either live with us or they are in their own home, rented or owned. But how would you feel if your child was able to access their superannuation early, knowing full well yourself how crucial super is and how it can be the difference between poverty and actually enjoying your retirement after 65? Would you be OK with them taking out their super at say, 30, and using it to purchase a home? Or would we rather they borrow the money from us?

One thing this suggestion from Mr Hockey has opened up is the question about what exactly superannuation will look like in years to come. For our generation, superannuation wasn’t compulsory until 1991, and the smart were able to save well before then, while some others were left with barely anything at all when they opened the tin in their 60s.

Labor slammed the notion that super could fund the first home for young adults but Mr Hockey said that we need to start thinking seriously about super and how to use it, as the population continues to extend its life expectancy.

“We are prepared to look at a diverse range of proposals to help young Australians buy their first home,” Mr Hockey said. But shadow treasurer Chris Bowen wasn’t having a bar of it and immediately attacked the suggestion and said, “Another day, another Hockey thought bubble on how best to undermine superannuation,” Mr Bowen said.

This plan could also affect those of us who own a home and wish to downsize if the scheme is popular, as housing prices will rise to keep up with demand.

The shadow treasurer also told ABC Radio that “The objective of the superannuation system should be giving Australians a dignified retirement and, as a result, reducing pressure on the aged pension. That’s the way to make the aged pension more sustainable, not Joe Hockey’s method of simply making people work longer and making the pension less adequate”.

Tony Abbott also weighed in on the topic, telling reporters in Perth this afternoon, “It is something that I am very happy to see further debated but there are obviously some issues around it, and let’s fully consider it”.

He assured the media that his government doesn’t have any plans to introduce it at this stage. But after a week where pensioners and baby boomers have been front and centre in the government’s mind, can we really believe that there won’t be major changes? If not for us, for our children, who in turn look to us for guidance and stability?

And for those of us who have retirement nest eggs and have worked extremely hard for our money, it can seem like backwards thinking to show our children how hard work pays off, only for them to be given an easy way out that could be catastrophic in the long run. Not to mention the temptation to take a lump sum of money that is only ever able to be accessed before 65 (70+ for their generation) in extenuating circumstances – it could be rorted.

According to the CEO on Industry Super, David Whiteley, “Such proposals (allowing early access to super) are completely at odds with the objective of encouraging Australians to build private savings to take pressure off the aged pension,” Mr Whiteley told Fairfax.


What do you think? Would you advise that your children dip into their super to get a home deposit together or do you think they should save the money themselves? Tell us below.

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  1. What happens if they use the super for their first home and end up with very little super left for retirement? Would they be told to sell their house so they can eat if ther is no pension by the time our children retire? How did ever Joe Hockey become tresurer is beyond me. Cannot wait to see the end of him.

  2. is this bloke for real,on one hand he wants to restrict pension entitlements and now offers incentive to current generation to dip into their Superannuation.
    Who will provide for their next generation certainly not us oldies

  3. why not let them use their super if it is to buy or make a deposit on their own home, most wouldn’t have enough to buy the house outright but it could be a good deposit and then while they are still working they can pay it off,. they then will not be subjected to living in rental for the rest of their lives as even though the super will grow the housing prices will be out of their reach. so let then get their own home, there will always be something for pensioners to live on as goverments will not let them starve

    1 REPLY
    • For some it would be a good idea to get a home without the bank interest … but I am sure that it would be abused like other things have been. The trouble is that a very large amount of people do not believe they should go without to save money. Either way..Superannuation or Higher Taxes (for Pensions)… they are not fool proof… they are flawed by dishonesty.

  4. During the doubled $7000 first home owners grant I know of a father who bought 4 homes in his childrens’ names to get those grants. Without scruples he effectively crushed his childrens’ right to apply for those grants. Not only that he then sold the properties and lost all the money in a grandiose scheme. He is now on the dole living with one of those children. How can the government prevent this sort of thing from happening again and again?

  5. We all should know by now that the banks run this country & if it is defensible in court, they will use it to extract as much as they can of any available funds you have. Making it easier to go deeper in debt for much longer is insane.
    Be out of work for a couple of months on a fine line budget & watch the banks take the house AND your super then ask Joe was it a good idea.

    Remember, these governments think it’s OK to check peoples banks accounts & confiscate them after 3 short years on inactivity.
    There is enough evidence to tell us that this government are doing a lot of batting when it comes to banks wanting further deregulation, which after the Don Nguyen affair is quite insidious.

  6. Owning your own home when you retire is such an important part of retirement that home ownership and retirement income should be all part of the retirement strategy.

  7. Mr Hockey, I am confused you are asking people to work longer because the country cannot afford people to retire and now you are suggesting that their super can be accessed by their children, super that they have put away as a nest egg worked long hard hours for and in some cases will assist those retiring to be self funded retirees, therefore taking away the cost of this country having to fund retirees.
    I think you are looking at the wrong end of the workforce, I am aware of many young people who are not working living on benefits because they choose to live where there are never going to be jobs available. I am also aware that there are many rural farming towns who are screaming out for workers but because it means doing the Auzzie thing of rolling your sleeves up and do a good day hard work these jobs don’t get filled. These people would also not be contributing to their own retirement and in years to come who will fund their retirement?
    I think their are many issues that need addressing but not the issue of the retiree who has worked hard saved for their retirement and have been the ones who have rolled their sleeves up and contributed to this country to make it what it is today.

  8. I know a young someone who had to dip into her super to pay for her mum’s funeral. I wonder if a home deposit could be accessed in the same way already? Does anyone know?

  9. And What happens when they default on their Payments and the finance company that they are with reposes their home they loose everything including their Super.

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