Australia Sees Strong Demand for Early Access to Pension Funds
Australia Sees Strong Demand for Early Access to Pension Funds
(Bloomberg) -- Some 881,600 Australians have already registered their interest for early access to retirement savings after the government relaxed redemption rules to help cushion the financial impact for workers hit by the coronavirus outbreak.
The tally is of the close of business April 16, a spokesperson for the Australian Taxation Office said Friday. Applications open Monday.
Custodians of Australia’s A$2.95 trillion of retirement savings are bracing for as much as A$50 billion in outflows in the next five months, about double government estimates, as people take advantage of the offer. The government expects about 1.3 million people would apply for an early withdrawal, putting as much as A$27 billion back into the pockets of workers.
| Read more on the policy’s impact: |
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| Breaking ‘Sacred Rule’ Shatters Psyche of Australia Pensions |
| Withdrawals of $31 Billion Threaten Australian Pension Returns |
| Australia Pension Funds Fear Early Access May Compound Pressure |
Should an application be approved, pension funds have about five days to transfer the money to the recipient. Applicants can withdraw A$10,000 before the June 30 end of financial year, and another A$10,000 between then and Sept. 24.
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