Fed: let the house go but keep your super - experts

AAP General News (Australia)
12-19-2007
Fed: let the house go but keep your super - experts

People who face having their homes repossessed .. are being warned dipping into their
superannuation savings to pay the mortgage should always be a last-resort.

And even then .. the Australian Institute of Superannuation Trustees says you'd probably
be better off letting the house go .. and hanging on to your super.

A report by the ACT Consumer Law Centre .. released yesterday .. shows an increase
in early drawdowns on super corresponds with an increase in mortgage foreclosures.

AIST chief executive FIONA REYNOLDS says using super to get out of financial trouble
may simply delay the inevitable .. and also put the person's future financial security
at risk.

She says reducing a super balance by even a few hundred dollars could have a significant
impact on many people's retirement plans.

AAP RTV dep/rl/bart

KEYWORD: REPOSSESSIONS (CANBERRA)

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