A big drawback of Super is the restricted access to funds until retirement. What if you need money before then? This lack of access to funds is a very big concern for many people. But I see it differently.

We need to be a little strategic here. We all want financial security, i.e., to have the choice to stop working one day and have enough savings and passive income to support our lifestyle.

To do that, we need to allocate funds for this goal so that when the time comes, there’s a pot of money waiting for us. As this money is earmarked for our financial security, we don’t want to use it for anything else.

I believe the inability to access your super money before retirement is a good thing. Your financial security money is ‘quarantined’. You’re protecting it from yourself because we human beings are hard-wired to value instant gratification over long-term rewards.

You are free to do what you like with the money outside super. If you take a big risk on an investment or business idea and lose a lot of money, you super money will not be affected. It’ll be there when you retire. Your financial security is not compromised.

By the way, there are a range of special conditions such as financial hardship, disability, death etc. under which you can access your super before retirement.

As always, feel free to call or email me if you want to discuss anything.