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Making Superannuation Contributions After Retirement

Whether you’re getting close to retirement or you’re building your fund, it’s essential to be aware of what happens to your ability to contribute to superannuation after you retire. While many would have done some calculations to see the benefits they’ll reap from contributing to their super, others would like to double-check to see if their computations are right. 

Since you can still contribute to your super even after retirement, there are a few rules you need to be aware of. To continue to make contributions to your superannuation after retirement, you’ll need to consider your age, the type of contribution you’ll make, your account balance, when you retired, and whether you can continue working. 

Seeing as there are many things to consider, you should seek superannuation advice from experts to ensure that you are capable of continuing contributions even after retirement. 

What You Need to Know About Superannuation After Retirement

Contributions Under Age 67 and Retired

If you’re under the age of 67, you can make concessional or non-concessional contributions to your super, regardless of your employment status. When you’re over the age of 65, you can also make the downsizer contribution. 

Contributions Between Age 67 to 69 and Retired

If you’re more than 67 years old, but below the age of 70, you can receive mandated employer contributions or make the downsizer contribution. But if you’re retired and have worked at least 40 hours in a consecutive 30-day period or have a total super balance of below $300,000, you are eligible to make super contributions.

Contributions Between 70 to 74 and Retired

When you reach the age of 70 to 74, you can only receive mandated employer contributions and make the downsizer contribution. But if you meet the work test or work-test exemption, you can make personal non-concessional and concessional contributions up until 28 days after the end of the month when you turn 75. 

Contribution Over 75

If you’re 75 years old, you’re only allowed to receive mandated employer contributions and can only make the downsizer contribution. 

I’ve Retired—How Much Can I Put in My Super?

Getting superannuation advice is crucial as you’re nearing retirement age. This is because you need to be mindful of superannuation contribution caps, limitations on non-concessional contributions, and if your balance exceeds or is close to the transfer balance cap. 

The non-concessional contribution cap is $110,000 per year, and the general concessional contributions cap is $27,000 per financial year. If you’re under 67, you can use the non-concessional contribution bring-forward rule, and as for your concessional contributions, you can use the carry-forward rule while you’re under 75. 

Financial experts also recommend that you contribute to your super because it’s a tax-effective retirement plan strategy. But of course, you need to be aware that the amount you contribute to your super can only be accessed once you’ve met a superannuation condition like reaching your preservation age and retirement.

The Bottom Line: Work with a Financial Planner for an Effective Superannuation Retirement Strategy

There’s no denying that superannuation is the wealth accumulation vehicle Australians rely on to fund their retirement. Seeing as this is a crucial retirement plan, it’s important to work with a financial planner to get customised superannuation advice and strategies that will help you retire with ease. 

When it comes to retirement financial planning, you must speak to financial experts to ensure that you’re on the right track with your finances. 

If you’re seeking trusted financial advice, reach out to Newcastle Financial Planning Group. Our financial specialists can help you focus on retirement financial planning, superannuation advice, insurance advice, estate planning advice, and more. 

Book a complimentary meeting and call us at 02 4032 7934 today!

 

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Coastal Advice Port Macquarie and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

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