Australian nurse reveals why she dipped into her superannuation to pay for weight-loss surgery

When Chris Marsh was denied a hip replacement because of her weight, she felt she had run out of options.

The 69-year-old nurse from Lithgow, NSW, was living with chronic pain and growing increasingly desperate for a solution.

Then a “surprising” conversation with a colleague changed the course of her life.

In 2019, aged 61, Marsh made the decision to withdraw $22,000 from her superannuation to pay for weight-loss surgery.

While 60 is Australia’s preservation age — the point at which people can begin accessing their super in retirement — Marsh was still working and had no plans to retire.

Marsh told 7NEWS.com.au she gave little thought to what the withdrawal might mean for her future retirement savings.

Her focus at the time was on improving her health and regaining her quality of life.

After years of working as a nurse and spending long hours on her feet, Marsh needed a hip replacement by 2017.

Unable to afford private treatment, Marsh was placed on a waiting list for surgery through the public health system.

She waited two years during which time her condition deteriorated significantly.

‘You eat your emotions’

Eventually, she could no longer walk properly and fell into depression, turning to food for comfort.

Over those two years, her weight increased from 95kg to 132kg.

“You know, you eat your emotions,” Marsh said.

“I was eating anything and everything, all the wrong stuff.”

As her mobility worsened, Marsh said she became reliant on a cane and found it increasingly difficult to move between patients at work and ultimately had to take leave.

“It got to the point where walking from patient to patient became unbearable,” she said.

In 2019, when she was finally due to undergo the long-awaited surgery, Marsh was dealt what she described as a “devastating” blow.

During a review with her doctor, she was told she could no longer have the operation because of her weight.

“It was devastating,” Marsh said.

“I was angry. It just wasn’t fair. I’d waited so long and then I got a letter to say my surgery had been cancelled.

“I’d been taken off the wait list because of my weight.”

Increasing risks of hip surgery

Marsh was told being overweight significantly increased the risks associated with hip replacement surgery, including surgical site infections, blood clots such as deep vein thrombosis, joint dislocation and slower wound healing.

Determined to regain her health, return to work and get her life back on track, Marsh set out to lose weight.

She saw a dietitian, joined a weight-loss program, tried meal plans such as Lite n’ Easy and took part in hydrotherapy.

While she managed to lose 20kg, she struggled to maintain the weight loss and gradually began putting weight back on.

“That’s when I freaked out,” Marsh said.

“I said, ‘I can’t do this, I can’t go back’.”

At what she described as her lowest point, a colleague mentioned she had undergone weight-loss surgery.

Gastric sleeve surgery is the most common type of bariatric surgery in Australia.

It is surgery for weight loss that involves the removal of a large part of the stomach. After the procedure, patients feel full after eating a small amount of food.

According to Central Coast Weight Loss Surgery, for patients that are not covered by private health insurance the cost of gastric sleeve surgery in Australia can be up to $25,000, depending on the surgeon and inclusions.

Marsh said she had never considered the procedure because she assumed she could not afford it.

“Then my colleague mentioned you could use your superannuation to pay for the surgery,” Marsh said.

“I was really surprised because I didn’t know you could access that money before retirement.”

Accessing super for surgery

By then, Marsh said she no longer wanted to wait.

She hoped to organise the surgery privately so it could be done immediately, but that meant paying the full amount upfront.

“I wanted to get on with things, I wanted to get on with my life,” Marsh said, knowing she could not do that without first becoming eligible for the hip replacement.

In 2019, at the age of 60, Marsh withdrew $22,000 from her superannuation to pay for weight-loss surgery.

She said she was so desperate at the time that she gave little thought to the long-term impact the withdrawal might have on her retirement savings.

“I wasn’t really looking at that, I was very short-sighted at the time,” Marsh said.

“All I was thinking about was getting the surgery done, getting my hip fixed and getting back to work.”

After speaking with her superannuation fund, she learned she could access the money on compassionate grounds.

According to the Australian Taxation Office (ATO), superannuation is intended for retirement but Australians may be able to access their savings early in limited circumstances, including on compassionate grounds, for terminal illness, incapacity or severe financial hardship.

Compassionate grounds can include certain medical treatments, which is how Marsh was able to access her super before retirement to pay for the procedure.

By the time Marsh underwent gastric sleeve surgery, she weighed 132kg.

She said the procedure dramatically reduced her appetite and within a year she had dropped to 90kg.

With the weight gone, she was finally eligible for the hip replacement and underwent the operation in 2020.

After six months of recovery, she returned to work.

“It was just miraculous,” Marsh said.

“When I told people that I’d used my super to pay for the surgery, they thought it was great.

“Most didn’t even realise you could do that but when you’ve got no other options left to get back on your feet, it’s a lifesaver.”

Marsh, now 69, said she knows withdrawing the money reduced her retirement savings but she has continued working and delayed retirement to help make up for it.

What are compassionate grounds?

Since July 2018, the ATO has administered the early release of superannuation – meaning before retirement – under certain circumstances, including compassionate grounds.

Compassionate grounds for you or your dependant (such as child or spouse) are:

• medical treatment or transport
• modifying your home or vehicle to accommodate special needs for a severe disability
• palliative care for a terminal illness
• death, funeral or burial expenses
• preventing foreclosure or forced sale of your home

In April, the ATO shared a release regarding concern around some health practitioners and third parties using predatory practices to get individuals to inappropriately access their super early.

“It is unacceptable for anyone to pressure Australians into accessing their superannuation savings early to pay for overpriced or unnecessary treatments,” ATO Deputy Commissioner Ben Kelly

“Superannuation is a long-term investment designed to be used during retirement. Accessing your super early carries long-term financial risks and can cut into your retirement savings.

“Compassionate release of superannuation is an important safety net to help fund necessary health care where people cannot otherwise afford it.

“It should only be considered as a last resort and only when it is really necessary.”

The medical treatment must be for a life-threatening illness or injury, or to alleviate acute or chronic pain, or acute or chronic mental illness.

The treatment cannot be “readily available” through the public system. Cosmetic procedures are excluded.

You also have to prove you cannot afford to pay part or all of the expenses without accessing your super, for example, by spending your savings, selling assets or getting a loan.

To be approved for an early release of super on compassionate grounds, applicants must meet all eligibility requirements and provide supporting documentation.

Any superannuation withdrawn on compassionate grounds is paid and taxed as a normal super lump sum.