Moves to access superannuation welcomed

Moves to allow emergency access to frozen funds have been welcomed by older Australians, who have called for up to $20,000 to be made available to investors with unforeseen medical and aged care expenses.

Now, hardship provisions announced by the Australian Securities and Investment Commission (ASIC), will allow mortgage trusts to free up a portion of those frozen funds on a case by case basis.

National Seniors chief executive, Michael O’Neill, said the new hardship provisions would give retirees, many of whom favour these investments, peace of mind.

“What’s frightening is the prospect of suddenly being faced with a serious medical condition and, through no fault of your own, not having access to your life’s savings in order to pay for treatment.”

The new rules, governed under the Corporations Act, will give investors access to $20,000 plus 50% of the balance of their investment.

The hardship withdrawals are only available:

• Where the member is unable to meet reasonable and immediate family living expenses; or,
• On compassionate grounds (eg, medical costs for serious illness, funeral expenses and to prevent foreclosure); or,
• In the case of permanent incapacity.