Back to work after retirement
Friday 12 December, 2008 | SuperLiving
Q:
Q: IF ONE is permanently retired and withdraws all of their super and then needs to work again part time or start a small business sometime after, what is the consequence in relation to their superannuation?
Our expert is Ross Clare, Director of the Research and Resource Centre for the Association of Superannuation Funds of Australia.A: Whether you can again contribute to superannuation depends on your age rather than whether you have previously taken a superannuation retirement benefit. Individuals are allowed to change their mind about being retired.
If aged less than 65, anyone can contribute to superannuation, regardless of whether they are employed or not. However, employer contributions can only be made on behalf of someone who is actually an employee, while a person who is self employed and is seeking a tax deduction for their superannuation contributions needs to meet the test for being self employed.
After a person turns 65 they are subject to a work test before they can make contributions. At age 75 eligibility to contribute ceases. Superannuation Guarantee contributions are made up until age 70.
Where to find out more
To find out more about contributing to your super after retirement visit www.superannuation.asn.au.
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