DO NOT drain your super to buy Christmas presents!

We have seen an amazing recovery from the Australian economy over the past few months, and now we’re seeing some real proof of positivity returning to business as we approach the holiday season.


Survey results from both the ANZ and NAB have shown that business conditions are at a 20-month high, and we are hearing more and more positivity in the feedback about retail conditions and jobs as normality slowly returns to the market.


It ultimately comes down to confidence, and with more small businesses reopening, increasing their trading hours and product offerings, there is plenty of confidence in the economy. That’s not to say that we are back to normal or that everything is perfect, but with many of these businesses like caged lions for much of the year, they are ready to roar given the chance.


I spoke to a florist this week who received government support during the pandemic and was able to pivot their business to an online model, but are now able to add their normal shop front to their offerings to customers. This is a very common tale of how a business was able to survive and now, hopefully, thrive.


The other big thing on my mind this week has been superannuation, with the Tax Office warning those still planning on raiding their retirement savings that they have until the end of this week if they want to have the funds before Christmas.


My concern with this is not so much the impact is has on retirement savings, because I think it has been a smart move from the government in a year where so many found themselves in tough times. My concern is that this scheme was introduced to help people out of hard times, and should not be used for Christmas presents, or for end of year festivities.

Here’s my advice: access the funds if you need to pay rent or food on the table, but don’t be rushing out to drain your retirement savings if you can manage without it.