There have been 200 times more early release financial hardship payments processed by superannuation funds per week since the government’s scheme opened two weeks ago, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA said it estimated that 855,000 individual payments totalling about $7.1 billion had been made by 30 April, for super members suffering financial hardship as a result of the COVID-19 pandemic.
ASFA’s analysis suggested that:
ASFA chief executive, Dr Martin Fahy, said funds had worked cooperatively with the government and regulators to change systems to process the unprecedented volume of transactions to ensure the payments had been made quickly and safely.
“The strength of Australia’s world-class compulsory super system has enabled super funds to play this important role in supporting Australians in these unique circumstances and superannuation is committed to playing a key role in rebuilding the economy, by providing much needed capital for the recovery,” he said.
The $9 billion fund is backing agriculture investor GO.FARM, with its capital already directed towards enhancing two key assets.
Brighter Super is considerably scaling down the investment options it offers members in order to reduce costs.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
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