May 03, 2023
Here’s Why 1 Million Australians Emptied Their Super Funds
NGS Crypto is an Authorised Reseller of NGS Group Blockchain Mining Packages
Menu
NGS Crypto is an Authorised Reseller of NGS Group Blockchain Mining Packages
The recent news that one million Australians have emptied their super funds totaling about $38 billion has come as a shock to many. Super funds or Self-Managed Super Funds (SMSFs) are important financial investments that many Australians depend on for their retirement savings. What would drive so many Australians to empty their super funds? In this blog post, we will examine the reasons why one million Australians have done this and discuss the implications of this decision.
The economic landscape in Australia has been changing drastically over the past few years due to the impact of the COVID-19 pandemic. While the Australian government has implemented various measures to help people during this difficult period, many Australians are still struggling financially. According to The Australian Bureau of Statistics (ABS), as of January 2023, unemployment and under-employment levels are sitting at 3.5% and 6.1% respectively. This, coupled with the rising cost of living which has risen 7.8% in 2022 is causing financial hardship for many Australians, leading some to withdraw their superannuation early as a way to stay afloat.
As the economic downturn in Australia has continued, more and more Australians are choosing to withdraw their superannuation savings early to make ends meet. With rising costs of living coupled with a ‘Mortgage Cliff’ on the horizon, Australians have been forced to make tough decisions about where their money goes.
A total of 3.5 million applications were approved to withdraw their super early through the early release of the superannuation scheme in 2020. Most of these used their superannuation savings to pay off debts such as credit cards, car loans and other personal loans. This is often seen as a sensible decision as paying off high-interest debt can reduce the amount of interest paid in the long run.
A self-managed super fund (‘SMSF’) can be an attractive option for Australians looking to secure their financial future. It can offer greater flexibility to other retirement savings options as it enables members to make decisions about where and how their money is invested. SMSFs can also provide many tax advantages that could be advantageous for those looking to reduce their overall tax burden. However, one should always seek professional advice, as one person’s individual financial circumstances are different to another.
SMSFs can enable members to be in control of their own investment decisions, in addition to giving them the freedom to choose investments that align with their own personal goals and risk appetite. For example, investors can decide which assets to include in their fund, as well as the timing of contributions and withdrawals. Additionally, if an investor wishes to hold direct property investments, this can also be done through an SMSF.
Another benefit of SMSFs is the ability to borrow money within the fund, which can provide additional investment opportunities. This is known as ‘limited resource borrowing’ and may involve borrowing money to purchase a specific asset, such as a rental property or shares. The loan is typically secured against the asset purchased, and interest rates are generally lower than traditional loans.
At NGS Crypto, we offer members a unique opportunity to subscribe via their SMSF into blockchain mining. This technology supports the blockchain environment and in return charges a fee. This fee is paid to the member and is dependent on the size and term of the subscription. This ranges from 6-16% per annum, depending on your subscription package.
Our experienced team of blockchain mining specialists are available to help you understand the process and benefits of blockchain mining. You can then decide whether it would be a good addition to your SMSF portfolio. As stated before, professional advice is always advisable. If you do not have a SMSF we would be happy to introduce to you an independent SMSF accountant.
At NGS Crypto we believe that everyone should be able to enjoy financial freedom. By partnering with us, you can take advantage of our secure and convenient platform, receive expert blockchain mining advice, and consider the attractive tax incentives available to SMSFs.
Contact us today to find out more about how we can help you maximize your super fund returns.
The information presented on this website is general information only. It should not be taken as constituting professional advice from the website owner – NGS Crypto PTY LTD (NGS Crypto). Any information regarding past performance and returns contained on this website should not be construed or interpreted as a prediction or opinion as to future performance and returns. NGS Crypto is not a financial adviser. All views and observations expressed by NGS Crypto on this website are for information purposes only, are general in nature and should not be treated as investment or financial advice of any kind.
NGS Crypto is an authorised reseller of NGS Group blockchain mining packages. The information presented on this website (https://ngscrypto.com) is general information only. It should not be taken as constituting professional advice from the website owner – NGS Crypto PTY LTD (NGS Crypto). Any information regarding past performance and returns contained on this website should not be construed or interpreted as a prediction or opinion as to future performance and returns. NGS Crypto is not a financial adviser. All views and observations expressed by NGS Crypto on this website are for information purposes only, are general in nature and should not be treated as investment or financial advice of any kind. Before making an investment in crypto assets, you should consider seeking independent legal, financial, taxation or other such professional advice to check how the information on this website relates to your unique circumstances. NGS Crypto is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website. You can view our full terms & conditions by clicking here.
NGS Crypto is not affiliated, associated, authorized, endorsed by, or in any way officially connected with this NGS Super (ABN 73 549 180 515).
© 2023 NGS Crypto
NGS Crypto is an Authorised Reseller of NGS Group
