Financial stress drove early super uptake

Hospitality and retail workers have the highest rates of financial stress – 86 and 64 per cent higher than the national rate – in the wake of COVID-19, and have also seen higher numbers of applications for early access to super.

“As we look ahead with optimism to a better 2021, AMP’s research shows the impact COVID has had on the financial wellbeing of Australian workers and the industries most impacted,” said Stephen Owen, AMP general manager for workplace super engagement.

“Our industry also has an important role to play in helping those Australians who have withdrawn super consider how to rebuild their balances so they close any retirement savings shortfall and help improve their quality of life in later years.”

One in three members of AMP’s superannuation plans who work in the hospitality industry applied for early release, the highest of any industry. However, the pandemic has also had some positive effects, with a 6 per cent increase in the number of workers establishing a financial plan and saving an additional 5 per cent for a rainy day. Those who were directly impacted by COVID are 10 per cent more likely to have taken action to save.

“Encouragingly, the research also shows that many Australians have used the stress caused by COVID as a motivator to take action to review their financial circumstances, put goals in place and make plans for the future,” Mr Owen said.

“We know these actions can give people a greater sense of control, and significantly improve financial and general wellbeing. There are other relatively easy steps people can take to reduce stress, including taking advantage of the many freely available online education resources, and participating in the education programs their employer or superannuation provider may offer.”