Owning a home feels like a distant dream for many young Australians, and a growing number of Gen Z workers believe superannuation could be the key to unlocking it. But experts warn this short-term solution could slash hundreds of thousands from retirement savings.
Why Young Aussies Want Superannuation Access
A new RedBridge Group study revealed:
- 70% of 18–34-year-olds support using super to buy a home.
- Among blue-collar workers, support jumps to 80%.
- Across all age groups, 60% now back the idea – up 10% from last year.
For many, property ownership feels more urgent than retirement. But financial experts say tapping into super too early could be a costly mistake.
Who Supports Super Withdrawals the Most?
The survey highlighted key groups more likely to support early super access:
- Lower-income earners (<$1,000/week): 65% support vs 50% of high earners.
- Unemployed Australians: 70% support vs 60% of full-time workers.
- Lower-educated groups: 67% support vs 50% of university graduates.
In contrast, older Aussies were far less enthusiastic, with only 52–58% of those aged 35+ backing the move.
The $50,000 Property Deposit Proposal
The Coalition previously floated the idea of letting first-home buyers use up to $50,000 from super for a house deposit. While attractive, experts warn it could:
- Inflate property prices – by 7.4% to 10.3%.
- Push capital city median prices up by as much as $92,500.
- Leave individuals retiring with $195,000 less if they withdrew $35,000 today.
In other words, short-term property gains may create long-term retirement pain.
How Aussies Would Use Their Super If Allowed
Finder research shows Australians aren’t just eyeing homes:
- 15% would use it to buy their first property.
- 10% would cover cost-of-living pressures.
- 8% would pay off an existing mortgage.
- 8% would fund a holiday.
While tempting, experts warn that dipping into super for lifestyle spending could leave many financially vulnerable in retirement.
When Can You Actually Access Super?
Currently, Australians can generally access super:
- At 60, when you retire.
- At 65, even if still working.
- In limited cases earlier, such as:
- Serious medical expenses
- Funeral costs
- Preventing home repossession
- Permanent incapacity
- Severe financial hardship (up to $10,000)
Expert Warning
Superannuation experts stress that the money is designed as forced savings for later in life – not a short-term cash boost.
As Alison Banney from Finder explains:
“It’s going to grow into a huge pile of money that we’ll really need in retirement. It’s in your interest to not only leave it alone but add to it.”
FAQs
1. Can I use super for a home deposit right now?
No, unless laws change, super can’t be used for a home deposit except in rare government schemes.
2. How much could I lose if I dip into my super early?
A 30-year-old withdrawing $35,000 today could retire with $195,000 less.
3. Will letting people use super increase house prices?
Yes. Experts estimate prices could jump by up to 10% if buyers gain super access.
4. What’s the earliest I can normally access my super?
You can generally access super at 60 (retirement) or 65 regardless of work status.
5. Is super safe from inflation and market changes?
Super is invested and can fluctuate, but long-term growth typically outpaces inflation.
Final Thoughts
Using superannuation to buy property might seem like a quick fix to crack into the housing market, but the long-term consequences could be devastating. Losing nearly $200,000 in retirement savings could mean relying on the pension or struggling financially later in life.
For now, the smarter move may be to explore existing first-home buyer schemes, save steadily, and let superannuation grow untouched.