Figures show how men spent their early access to super funds

Men who accessed their superannuation nest egg early because of COVID-19 pandemic, went on a gambling binge according to a latest survey.

Men spent $290 more on gambling in the fortnight after receiving their super withdrawal funds. This is compared to $56 pre-COVID days.

While men outspent women on gambling, they also spent more on entertainment and automotive services.

Instead of using their super funds as a lifeline to get them out of a financial hole because of the pandemic, both men and women to increase their spending on everyday expenses.

However, both men and women – about 15 per cent used their early super withdrawals to pare down debt.

The research by credit bureau illion and consultancy AlphaBeta, part of Accenture, is based in the bank transactions of 13,000 people who made early super withdrawals since the outbreak of coronavirus.

Women who made early withdrawals of their super, increased their spend on essentials on themselves and their families, especially on food and clothing compared to men.

Women spent nearly one-fifth more than men on food with supermarket spending more than doubling. Women also outspent men in clothing, utility bills and personal care.

Compared to men, women also increased their spend on hair and beauty once they received their super lump sum.

In response to the pandemic with more jobs being lost and more people being stood down, the Federal Government allowed people to withdraw $10,000 from their super accounts tax-free this financial year and a further $10,000 in the new financial year from 1 July. According to the Australian Taxation Office, more than two million people withdrew up to $16.8 billion of their super funds.

“There’s nearly $17 billion of super cash slushing around the economy and as our data shows, it is being spent fast, not saved,” said Dr Andrew Charlton, director of AlphaBeta.

Not many withdrawals were used as the lifeline, the policy intended, added Dr Charlton.

“The high levels of discretionary spending from people who accessed their superannuation early demonstrate that this money was used to increase spending,” he added.

Simon Bligh, chief executive of illion said that each dollar in superannuation spent now could be worth up to 10 times the value at retirement age.

“We would strongly encourage people to think about this value equation before they withdraw and spend,” Mr Bligh said.