Working in retirement
Maybe retirement isn’t what you expected, you might miss the routine, the people, or the sense of purpose that working gave you. Or maybe you would like an income boost. Whatever your reason, you’re not alone. Once you’ve decided to go back to work here’s what to know about your income and super.
Retiring today doesn’t mean stopping work completely
More people are continuing to work past the traditional retirement age. Some do it to help their retirement savings last longer. Others work because they enjoy it. Work can also help you stay active and connected.
You might choose to take a “gap” year after 60 and return later. Or you might change roles, start something new, take on a job that reflects your interests and passions, or do some consulting in your area of expertise.
How does a new job affect my super income?
If you’ve already started a retirement income account and then go back to work, you can usually keep the account open. The same rules still apply, and you’ll need to take at least the minimum pension payment each year.
If you don’t need that payment right away, you may be able to put it back into super. But you can’t put it back into your retirement income account, so you will need a separate super accumulation account for any new contributions.
If you moved all of your super into a TTR or retirement income account, you may need to open a new super account. If you left some money in your original super account, you may be able to keep using that account.
Things to check when you go back to work:
- If you receive the government Age Pension, you might like to seek advice on how work may affect your pension.
- Any flow-on effect working can have on your income and tax, you may even like to seek advice on this.
What happens to my super after age 75?
You will still be entitled to receive compulsory super guarantee payments (SG) from your employer if you return to work – regardless of how old you are. You may also be able to make voluntary contributions, depending on your age.
- Until age 75 you can make voluntary contributions to your super account. If you’d like to claim a tax-deduction on these, you’ll need to meet the 'work test'.
- Once you turn 75, the only way you can add to your super balance is via SG contributions from your employer, or downsizer contributions. All other voluntary contributions (e.g. salary sacrifice) are no longer available after this age.
Working in retirement checklist
You can download our planning to work in retirement checklist to help you understand the impacts on your income and super. You can also work through the checklist below by talking to a super specialist.
Explore more: it’s your time to thrive
Will my super go the distance?
Many of us can now expect to spend 20 years or more in retirement, so it’s no surprise many people worry they’ll run out of money. The good news is there are ways to boost your savings, so your money lasts longer.
How do I turn my super into income?
Your super doesn’t stop working when you do. You could set it up to pay you a regular income, take it as a lump sum, or use a mix of both.
Setting up a TTR strategy
Starting your retirement doesn’t have to be a hard line in the sand, there’s another option that allows you to ease into it. A Transition to Retirement (TTR) strategy can be a useful way to gradually ease out of the workforce at your own pace.
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