- Australians withdrew $817.6 million from their super to cover dental costs in 2024-25 at an average of $24,889 per person
- Withdrawing $24,889 from your super to pay for dental at age 30 will cost $75,308 more than taking out a personal loan
- 58% of all super withdrawals on compassionate grounds were for dental costs in 2024-25
- These numbers are up from $108.2 million and 22.9% in 2020-21, respectively
Aussies accessing their super to pay for dental procedures could be costing themselves $75,000 or more by the time they reach retirement, Savvy’s analysis has found.
Although super has been in the headlines in relation to housing in recent weeks, it’s dental and other medical costs where it’s accessed most frequently.
ATO data revealed that of the $1.416 billion approved for early super access on compassionate grounds in 2024-25, $817.6 million (or around 58%) was done so to cover dental treatments, while $1.369 billion (approximately 97%) was taken out for medical and transport costs.
The amount withdrawn to pay for dental has risen well over sevenfold across the last five years, having sat at just $108.2 million in 2020-21 and accounting for 22.9% of the total withdrawn super value.
In response to the sudden spike, the ATO and the Australian Health Practitioner Regulation Agency (Ahpra) released a statement condemning businesses and practices that encouraged super spending for expensive or unnecessary medical procedures.
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However, while you might think that using your super is a great way to work around depleting your savings for major dental work, it’s important to understand just how much it could cost you down the track.
$25,000 today, $75,000 at retirement
With the average withdrawal sitting at $24,889 across that period, it’s clear that not everyone would have that amount lying around if they need significant dental treatment.
When it comes to your options for financing it, though, there are two main options: using your super or taking out a personal loan.
Although the upfront cost of a loan is greater, as well as the potentially steep interest rate you’re likely to receive, the amount you’d pay all up pales in comparison to withdrawing from your super.
The equation is simple when it comes to working out the cost of a personal loan: using the average rate for customers approved through Savvy for medical use loans of 14.95% p.a., a $24,889, five-year loan would set you back $591 per month and $10,598 in interest overall.
Calculations for withdrawing from your super are a bit more complicated, though, as you can see from the table below comparing the balances of those with and without dental withdrawals:
As you can see, although the $24,889 coming out of your super won’t affect your current financial situation, withdrawing that amount at age 30 would mean you’d have almost $86,000 less to play with when you retire.
When you factor in the cost of the personal loan for the 30-year-old who opted against accessing their super, they’re $75,308 better off.
The massive hit to your retirement fund is evidence enough that accessing your super early should be approached with caution, according to Savvy Managing Director Bill Tsouvalas.
“Aussies should treat their super like they’re putting money into a padlocked safe and don’t have the key,” he explained.
“There are obvious exceptions to this, namely the First Home Super Saver scheme, but it should otherwise remain untouched unless absolutely necessary.
“If you’re considering accessing it to cover the cost of expensive dental treatment, it should only be a ‘break glass in case of emergency’ solution if you’re unable to fund it yourself or obtain any other form of finance.
“Not every family is in a position to take out a loan, of course, but for those that can afford around $150 extra per week to their budget, it’s a small price to pay for the tens of thousands you’ll save for retirement.
“Many dental clinics also offer payment plans for those who can’t afford their treatment upfront, so it’s worth being aware of all of your options before you start digging into your super.”
What dental procedures are Aussies using their super for?
The most expensive dental treatment on offer in Australia right now is veneers.
According to Toothsome, a specialist dental clinic in Sydney, the cost of having a single tooth implanted can range from $3,000 to over $6,500.
To have your full upper or lower row of teeth replaced, the cost can reach $18,000 to more than $35,000, while a full mouth of veneers will set you back $38,000 on the low end and up to or beyond $70,000 at their peak.
While having extras cover can provide some financial relief in certain cases, this will only happen if the dental implant is deemed medically necessary and will depend on your insurer, your level of cover and any claim limits included in your policy agreement.
Even if your dental implants are considered medically necessary, the chances of having 100% of the procedure covered by your extras policy are slim.
For example, according to St Lucia Dental, some health insurance providers will only cover the dental crown itself, rather than the cost of inserting the implant post or the surgery required.
With all of these factors combined, it’s clear to see why 15,000 Aussies travel overseas for medical treatment every year, as treatments are often half or even a quarter of the cost compared to what you’d pay on our shores.
Deciding to travel overseas for your dental work isn’t a decision that should be taken lightly, as plenty of Australians have returned with long-term complications as a result of the work done overseas.
