Business · Economy · 7 hrs ago
Australians withdrew a record $1.46 billion from retirement savings for medical costs
Australians withdrew a record $1.46 billion from superannuation on compassionate grounds in the 2025-26 financial year, mostly for medical costs.
The withdrawals have risen about 220 per cent since 2018-19, as health expenses and living costs put pressure on household budgets.
Australia allows people to access retirement savings early for urgent needs, but medical claims must be verified by two practitioners.
Regulators say some health practitioners have encouraged inappropriate withdrawals, including for high-cost treatments people may not need or be able to afford.
The tax office has increased checks and fined practitioners $1.5 million for misleading statements, while regulators have referred two practitioners to tribunals.
The Super Members Council is calling for a ban on advertising early withdrawals to protect people’s retirement savings.
Australians withdrew a record $1.46 billion from superannuation on compassionate grounds in 2025-26, with about $1.42 billion used for medical costs.
The amount approved has risen about 220 per cent since 2018-19.
Regulators have warned of health practitioners using predatory sales tactics to encourage people to access retirement savings for treatments they may not need or afford.
Almost 65,000 applications were approved in 2025-26, 5 per cent fewer than the previous year.
Consumer and superannuation groups say the withdrawals can damage retirement security and are calling for stronger protections.
- Who
- Australians withdrawing superannuation, alongside regulators and consumer and superannuation groups addressing the trend.
- What
- A record $1.46 billion was withdrawn on compassionate grounds, mostly for medical costs, as regulators warned about predatory sales tactics.
- When
- In the 2025-26 financial year.
- Where
- Australia.
- Why
- The withdrawals were for compassionate needs, mostly medical costs; consumer advocates said unaffordable health care was a factor.
This story does not have two clearly opposing sides.
The amount approved for compassionate release of super was $456.6 million.
Regulators received almost 100 related complaints about health practitioners.
Australians withdrew about $1.46 billion on compassionate grounds, including about $1.42 billion for medical costs.
The ATO fined practitioners a total of $1.5 million for misleading statements linked to early access to super.
- Total withdrawals
- $1.46 billion in 2025-26
- Medical costs
- About $1.42 billion
- Applications approved
- Almost 65,000 in 2025-26
- Increase since 2018-19
- About 220 per cent
- Practitioner fines
- $1.5 million over the past year
What people are saying
Increasing numbers of Australians are having to choose between living in pain now or being poor in retirement.
We're deeply concerned to see the scale of the financial damage that's being done often to very vulnerable Australians.
Our message to individuals and medical practitioners is clear, compassionate release of super should only be considered as a last resort.
We are concerned by predatory sales tactics that use social media and internet advertising to attract patients for high-cost treatments they do not need or cannot afford.