Analysis by AMP shows clients working in the hospitality, arts, recreation, manufacturing and wholesale trade industries have higher rates of applicants for the Government’s early superannuation release scheme.
AMP received 52,379 applications from clients in the first two weeks since the scheme launched, returning approximately $370 million of superannuation savings to clients.
Close to one in five AMP clients working in the hospitality industry have applied for the withdrawal during the first two weeks.
AMP provides superannuation to more than 1.5 million1 Australians working across a wide range of industries, with withdrawal applications broadly in-line with expectations.
Lara Bourguignon AMP’s Managing Director, Superannuation, Retirement and Platforms said AMP’s focus was supporting clients in hardship and ensuring they receive funds efficiently and securely.
“We fully support the government’s early release package and we’re pleased to provide our clients with quick access to their funds. The volume of applicants shows how many Australians are doing it tough and we’re committed to helping them.
“It’s not surprising the highest rates of applicants work in industries where employment has been most directly impacted, including hospitality, arts and recreation.
“The analysis clearly demonstrates the strain on these industries and that the scheme is working to support those who have been displaced from work. These industries represent a small proportion of AMP’s overall client base and we’re well-placed to meet further withdrawal requests.
“We’ve seen a progressive increase in applications from the wholesale trade sector, while manufacturing also remains relatively high as demand and work hours have been reduced across many industries.
“We encourage all Australians to make an informed decision when accessing their super early, including speaking to their superannuation provider and taking advantage of the many information resources available.
“It’s important people take the time to understand the different options available for financial assistance, and also the longer-term impact on their retirement,” said Ms Bourguignon.
Other insights from analysis of the first two weeks of AMP client applications include:
- The average age of applicants is 40, with 66 per cent under the age of 44
- 70 per cent of applicants have super balances of $50,000 or less
- The average withdrawal amount for applicants is $8,300
- The highest number of applications were received on the first and second Mondays, albeit the run rate of applications has slowed with 30,503 in week one and 21,876 in week two
Data calculated from 200 employers with highest withdrawal volumes
John Perri, AMP’s Technical Manager, Superannuation, said there are a number of financial assistance options available for those in hardship.
“Those people who have been made redundant, stood down or had their hours reduced, can apply for the enhanced JobSeeker payment, which includes the new $550 per fortnight Coronavirus Supplement, but should check first if their employer was applying for the JobKeeper subsidy, and if it would apply to the individual.
“The JobKeeper subsidy of $1,500 per fortnight is paid to eligible employers to support the people employed as at 1 March 2020 who are retained in employment, and this payment is available until 27 September 2020.
“Some conditions related to JobSeeker have been relaxed, such as the temporary removal of the assets test, and relaxation of mutual obligation requirements until 22 May 2020.
“Many banks are also offering home loan and credit card repayment freezes, and some landlords and utility providers are also offering flexibility when it comes to rent and bill payments.”
More information about COVID-19 relief is available here.
1 Includes AMP’s mature business, to be sold as part of AMP Life transaction