Daily Liberal

Clever Money: Save $10,000 without taking out your super

Clever Money: Save $10,000 without taking out your super
Clever Money: Save $10,000 without taking out your super

This is sponsored content for Together Australia.

Raiding super hurts our young savers

Almost half a million young Australians have defied the warnings and cleared their super accounts thanks to the government's early release scheme.

Many experts fear those people will have to rely on benefits during their retirement because of the withdrawals.

Now, Australia's largest financial institutions are backing a campaign for more accessible financial advice.

Called Together Australia, the campaign includes a new website, resources video, and scores of self-help articles as well as a directory of advisers prepared to help pro bono or at reduced fees.

Adviser Ratings, one of the country's leading organisations for financial advisers, is leading the campaign for change.

The head of Adviser Ratings, which has some 22,000 advisers on its website, says increased regulation surrounding financial advice since the Royal Commission means it can now cost an average $3,000 per consumer to comply with new laws.

Hundreds of members are offering financial advice free for early release super and redundancy during the pandemic because we need to make advice simpler and less expensive if we are to help Australians through this crisis," says Angus Woods founder AdviserRatings.com.au.

When the government changed the rules in March to allow Australians to access two tranches of $10,000 in super payments, it was estimated that about 1.65 million people would take out $27 billion.

Instead, more than 2.2 million people have withdrawn a combined total of $18.5 billion, taking out an average of $8,000 each. Last week, on the first day of access to the second tranche, so many applications hit the Australia Taxation Office website it collapsed.

The government's own MoneySmart website tells Australians to speak to their banks or lenders before dipping into super to pay off loans. A special $300 fee for super advice was also offered.

Industry Super Australia estimates that a 25-year-old taking out $10,000 now could have $49,000 less in retirement, a 35-year-old could lose up to $34,000 and a 45 year old up to $23,000.

For more reports: togetheraustralia.com

10,000 more first-timers offered home deposit scheme

Clever Money: Save $10,000 without taking out your super
Clever Money: Save $10,000 without taking out your super

Australians looking to buy their first property will be able to access the second phase of the First Home Loan Deposit Scheme this month.

It's good news for first timers, who can cash in on low prices.

The program, which is open to 10,000 applicants, slashes the 20 per cent deposit normally expected for most first home buyers to just five per cent.

The government will act as a guarantor for the remaining 15 per cent, and is working with 27 participating lenders including Commonwealth Bank and the National Bank of Australia.

The lenders will assess applications through a number of requirements like an income test.

There is also a property price cap which is applicable in both capital cities and regional areas. The current cap, around NSW is $700,000. See more at: togetheraustralia.com

How to save on your mortgage

Home buyers are increasingly turning to second-tier mortgage lenders for help financing their house to take advantage of lower rates usually offered by these alternative lenders, and to avoid the tougher lending criteria imposed by the Big Four since the banking Royal Commission.

Save $10,000 without super

Draining your super could cost you more than $150,000 of your retirement fund. Why not make $10,000 of savings instead? Can't be done? You'd be surprised. Refinancing your mortgage and changing your service providers are on our list of better ways to save.

Are soaring tech stocks safe?

Afterpay, the company that brought you buy now, pay later options, is one of the hottest stocks on the market. Aside from Afterpay, the accounting program company Xero managed an all-time high and was joined by data service, NextDC last week. But how safe are tech stocks?

This is sponsored content for Together Australia.

Clever Money: Save $10,000 without taking out your super
Clever Money: Save $10,000 without taking out your super