Australians Forced to Raid Retirement Funds for Basic Dental Care: A National Crisis

Australians are increasingly dipping into their superannuation savings to cover dental costs, with ATO statistics revealing withdrawals of over $313 million for dental treatments in 2022-23.

This marks a significant rise from $108.2 million just two years earlier.

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Compassionate Release of Superannuation Programme

This trend is facilitated by the ATO's Compassionate Release of Superannuation programme, which allows early access to superannuation for specific needs, including medical treatments and mortgage assistance.

While withdrawals for categories like weight loss, IVF, and foreclosure prevention have seen little growth, dental care withdrawals have surged.

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The Role of Access My Super

Access My Super, a company partnering with 5,783 clinics, reports a 100 per cent success rate with 53,286 applications to access superannuation under this programme.

This reflects the growing demand for immediate financial solutions for dental health issues.

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Long-Term Financial Impact

Experts warn of the lasting consequences of early superannuation withdrawals. For example, a 30-year-old withdrawing $20,000 could lose over $150,000 in future savings by retirement.

This highlights the need to carefully consider the long-term financial impact.

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The Underlying Healthcare Issue

The rise in superannuation withdrawals for dental care underscores a broader problem in the Australian healthcare system. With dental treatments often not fully covered by Medicare, many Australians face high out-of-pocket costs, leading them to tap into their retirement savings.

This points to a need for more comprehensive dental coverage and affordable healthcare options.
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Conclusion

The trend of using superannuation for dental care is a growing concern with significant long-term implications.

While the ATO's programme provides essential support for immediate medical needs, it also raises questions about the sustainability of using retirement savings for healthcare.

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