Two leading financial coaches have cautioned Australians against withdrawing money from superannuation to get them through the

Two leading financial coaches have cautioned Australians against withdrawing money from superannuation to get them through the crisis, and to focus on paying off high-interest debt.

Molly Benjamin, founder of , a Sydney advisory agency which teaches women to take control of their financial futures, said house-bound Australians now have more free time than ever to organise their finances.

Ms Benjamin told Daily Mail Australia how we spend this time will directly determine our financial health and job security in the post-coronavirus world.

She said it’s crucial for women in particular to ‘switch on’ to financial discussions because they face unique challenges which see them ‘retire on less and earn less than men, while still living longer than men’.

Together with top money coach Betsy Westcott, Ms Benjamin has broken down complex issues like compound interest, insurance, debt and eligibility for government support payments to help people cope with financial stress as the pandemic continues. 

Money coaches Molly Benjamin and Betsy Westcott are teaching Australian women how to take charge of their financial futures during the uncertainty the coronavirus crisis

Money coaches Molly Benjamin and Betsy Westcott are teaching Australian women how to take charge of their financial futures during the uncertainty the coronavirus crisis

1.

DON’T TOUCH YOUR SUPER 

From April 20, furloughed workers and those whose income has been reduced by at least 20 percent because of the coronavirus shutdown will be allowed to withdraw up to $20,000 from their superannuation fund, tax-free. 

The first $10,000 will be made available from mid-April to July 1, and the second $10,000 from July 1 for roughly three months after that date.

Ordinarily, strict rules block people from accessing their superannuation until they hit retirement age of between 55 and 60. 

More than 361,000 Australians have already applied for early access to their superannuation, but Ms Benjamin warned it should only be used as a last resort and not to free up funds for discretionary spending. 

Early withdrawal from your superannuation fund should only be used as a last resort, Ms Benjamin warns. Young Australians could stand to lose out on as much as $233,000 over the course of their working lives if they access funds over the next six months (stock image)

Early withdrawal from your superannuation fund should only be used as a last resort, Ms Benjamin warns.
Kampus Hijau
Young Australians could stand to lose out on as much as $233,000 over the course of their working lives if they access funds over the next six months (stock image)

‘I don’t think people understand the impact withdrawing will have on their financial future,’ she said.

Ms Benjamin knows multiple cases of young Australians who are planning to access their super to pay off car loans and credit card debt instead of using the money to offset sudden financial hardship as it is intended.

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