ABC News
by Andrew Robertson
28 April 2020

"It was completely reasonable at the time, but it's caused a series of second-order consequences we need to think through,” says CEO and Founder Mark Carnegie.

When the dust settles on the coronavirus-inspired early release scheme, some estimate between $30 billion and $50 billion may have been pulled out. And, because of the nature of the workforces they cover, industry funds are doing the heavy lifting.

Mark Carnegie said everyone will suffer if super funds have to change the way they invest to be prepared to regularly pay large numbers of people before they reach retirement age.

"You're getting returns of 9, 10 or 11 per cent in an illiquid asset, and currently bonds earn 1, 2, or 3 per cent," he said.

"Over 30 years, the 6 per cent difference between those two numbers is a huge amount."

Hundreds of thousands of dollars, which will be the difference between a comfortable retirement doing the things you like, or just having the basics.

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