A small business owner who debited $ 10,000 from her retirement account to help pay for four cosmetic surgeries defended her decision.
Mother Cassandra Garcia, 41, used the funds after the government announced that those financially affected by COVID-19 would have early access to their super in March.
The $ 10,000 goes to nearly $ 30,000 worth of surgery, including the removal of her breast implants, 360-degree liposuction on her torso and legs, and a “minor adjustment under my chin.”
Talk about 60 minutes, Ms. Garcia said the cosmetic procedure was “essential” for her because it will improve her mental health.
Mother Cassandra Garcia, 41, has defended her decision to withdraw $ 10,000 from her pension fund to help pay for four cosmetic surgeries
“That money has certainly helped me achieve some things that make me feel much better about myself,” said Ms. Garcia.
“I just didn’t want a mother tum. I was just sick of all these little things … my mental health had suffered in recent years in terms of my body image.
“In the end, this is all our money. We do not borrow money from a bank. ‘
Ms Garcia said many of her friends are withdrawing money from their retirement to spend on designer clothes, shoes, handbags and makeup.
The businesswoman co-owns a small technology company that employs 20 people, which has been hit by the COVID-19 pandemic.
Ms. Garcia is being prepared for surgery. She said her mental health suffered from a negative body image, making it ‘essential’ for her to undergo cosmetic surgery
As a result of the pandemic, Ms. Garcia’s super fund also plummeted in value from $ 138,000 to $ 103,000.
Now that she’s taken in $ 10,000 for her cosmetic surgery, the super has dropped to $ 93,000 – a 33 percent loss in a matter of months.
Ms. Garcia admitted that withdrawing money from her super fund might “think” in the short term.
“I think it’s one of those things where we’ll have to wait and see what happens from here,” said Mrs. Garcia.
Ms. Garcia is talking to a cosmetic surgeon about a chin procedure. She admitted that withdrawing money from her super fund could “potentially” be a short-term mindset
Ms. Garcia is one of more than 2.2 million Australians who raised a total of $ 18.5 billion, an average of $ 8000, each from their super funds during their coronavirus pandemic.
WHO CAN ACCESS COVID-19 EARLY FROM SUPER
Citizens and permanent residents
Citizens and permanent residents can apply for: $ 10,000 from their super until June 30, and another $ 10,000 from July 1, 2020 to September 24, 2020.
Applicants must meet one or more criteria:
- You are eligible for jobseeker’s allowance, jobseeker’s youth allowance, parental allowance (including one and two partners’ allowance), special allowance or household allowance.
- On or after January 1, 2020 either: you have been made redundant, your working hours have been cut by 20% or more, your company has been suspended or your turnover has decreased by 20% or more.
SOURCE: AUSTRALIAN TAX OFFICE
To date, an estimated 395,000 people under 30 have already eroded their full super balance, according to a new analysis from Industry Super Australia.
The ISA estimates that around 480,000 Australians had discontinued their super accounts on June 14, the vast majority of which were young adults.
A 25-year-old who is now drawing $ 10,000 may retire $ 49,000 less, a 35-year-old can lose up to $ 34,000 and a 45-year-old can lose up to $ 23,000.
The trend seems to continue into the next phase, with the ATO website crashing earlier this month as thousands flocked to complete the second round of applications.
The site shrank within half an hour of the new fiscal year, with users reporting outages as early as 12:14 p.m. on July 1.
While industry super funds have supported the scheme’s goal of getting money for those in financial distress, the ISA reiterates the calls for members to access the funds only as a last resort.
“To have hundreds of thousands wipe out their savings halfway through their lives is a tragedy that has yet to happen and will hit everyone,” said ISA director Bernie Dean.
“Every Australian deserves a good life when he retires, not just retirement.”
Before the second installment opened, Mr. Dean warned young Australians that early withdrawals could also ‘wipe out’ their lives and income protection coverage if your super balance goes low.
Applications for access to super early fiscal year 2020-21 close on September 24.
Australians can access their super only if they are unemployed, eligible for a JobSeeker payment, fired since January 1, or have their working time reduced by at least 20 percent.
A barista working in a Sydney cafe on July 1 (photo), concerned that young people have withdrawn too much of their supers to help during the corona virus pandemic
Last month, the government warned it would take action against anyone who wanted to abuse the system.
Those who provide false or misleading information may face fines in excess of $ 12,000 for any false and misleading statement.
The MoneySmart website advises Australians to seek government help and talk to their bank or lender about potential financial aid before diving into your super.
THE ADVANTAGES AND DISADVANTAGES OF EARLY ACCESS TO YOUR SUPERANNUATION
- Dipping your pension can provide support if you urgently need financial help as a result of the coronavirus crisis
- Money accessible through this scheme is tax-free
- Money that is now accessible can now be more valuable than when you retired
- Depending on your age, withdrawing money now can cause you to miss out on more than double that amount by the time you retire, because withdrawn money does not yield compound interest
- A 25-year-old who is now drawing $ 10,000 may retire $ 49,000 less, a 35-year-old can lose up to $ 34,000 and a 45-year-old can lose up to $ 23,000.
- If you withdraw money, you will likely see cashouts at the bottom of the market
- The problem is even more problematic for women, who retire on average with 40 percent less super than men
- If you withdraw your full super balance or don’t have enough left to pay premiums, it could impact your life, total permanent disability, or income insurance
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