During the 2024-25 financial year, hundreds of thousands of Australians withdrew their super to ease economic pressure. For example, they withdrew more than $1.4 billion on compassionate grounds. This dramatic increase highlights a major trend of increasing withdrawals for medical costs, particularly for dental care. Importantly, it emphasises our increasing dependence on superannuation to pay for basic health needs. The new numbers show a significant change in demographics, including a dramatic closing of the gender gap for these withdrawals.
The need for early superannuation withdrawals demonstrates a continued trend of a lack of affordability for healthcare in Australia. Almost all of the withdrawn dollars were spent on medical bills. Dental care alone accounted for a staggering $817.6 million! This phenomenon begs the larger question of how accessible and widely covered healthcare services are across the country.
Surge in Withdrawals
The total approved for withdrawal in 2024-25 represents a massive increase over previous cycles, representing a dangerous trajectory. In 2023-24, a little more than $1 billion was allowed for such use. The jump in applications is a clear indication that a growing number of Australians are dipping into their superannuation. They’re using it as a last resort for immediate health care needs, particularly when they cannot access other forms of financing.
Individuals between 31 and 55 years of age represent the majority demographic for early withdrawals. They made up 75% of the approvals overall. This age group seems to be particularly hard hit by high medical costs requiring access to their superannuation funds earlier than expected.
“I’m stunned to hear that some businesses and practitioners are taking advantage of this process to push overly expensive or unnecessary treatments,” – Justin Untersteiner
The trend further underscores the burden of increasing out-of-pocket healthcare expenses on Australian households. And people making $45,001 to $120,000 account for over 60% of all approvals. This not only demonstrates the burden that unexpected medical expenses can impose on even middle-class families,
Gender Gap Closing
We have seen a significant change to the gender picture when it comes to superannuation withdrawal. During 2018-19, females represented 64% of withdrawals, with the percentage for males at 36%. Within that total, by 2024-25, women made up 54% of all compassionate withdrawals, overtaking men at 46%. Women are disproportionately turning to accessing their superannuation as a matter of last resort to cover urgent medical expenses. This trend is representative of a larger shift in our society towards health and financial decision-making.
Perhaps the closing gender gap is a sign of changing attitudes toward health spending among women. People are demanding to take charge of their health and wealth and are choosing to pull their superannuation funds for their medical procedures. This decision points to changing roles for healthcare within the home.
“There’s a broader problem here with the affordability of some medical care,” – Xavier O’Halloran
This new move away from the old withdrawal patterns raises important questions. How can financial systems be reconfigured to better serve women’s healthcare needs and support their ability to make independent, informed choices about their health and financial wellbeing?
Focus on Dental Care
Dental care has recently become the leading category for superannuation withdrawals. Over the last few years, demand for dental care has increased exponentially. During 2024-25, dental treatments represented almost 60% of the total dollar value withdrawn, at a total of $817.6 million. This increase in usage for dental costs further underscores the gap in coverage that exists for dental care.
In the last two years, demand for dental related superannuation withdrawals have surged. This surge reinforces the immediate need for Australians to seek affordable dental care. Seventy-three percent of people in Australia still have no coverage for basic dental care. Due to that, they are starting to look to their own superfunds for financial support.
“One of the biggest reasons why people are taking money out is for dental. We have a healthcare system that doesn’t really cover many dental costs unless you’re in very particular circumstances,” – Xavier O’Halloran
In 2024-25, all weight loss treatments received large approvals for a total of $254.9 million. Reproductive IVF treatments were able to grab the jackpot of earmarked pot, bringing in $74.2 million. These numbers show us that Australians are resorting to using their super to pay for big ticket medical procedures other than dentistry.
