Building and Accessing your Super over 65

Wednesday, June 12, 2019

But just because you have hit 65 it doesn’t mean you shouldn’t consider making super contributions. With Australians living longer than ever in retirement, many people are concerned they won’t have enough for a comfortable retirement.

Once your 65th birthday rolls around, many people are keen to put their feet up and enjoy a well-earned rest. When they think about their super, it’s usually more about how to wisely spend their retirement nest egg than how to add to it.

But just because you have hit 65 it doesn’t mean you shouldn’t consider making super contributions. With Australians living longer than ever in retirement, many people are concerned they won’t have enough for a comfortable retirement.

Once you are 65, the current rules require you to qualify for a work test of 40 hours in the past 30 days to be able to make superannuation contributions. This is out of step with the Age Pension qualification now being lifted to 67 years of age for those people born from Jan 1st 1957.

The government announced before the May budget and the Election that the ‘work test’ in superannuation will no longer apply between the ages of 65 and 67 - scheduled to start from July 2020.  This allows that age group to make tax-advantaged and non-concessional contributions to superannuation without proving to the tax man that they have worked those 40 hours.
 

Under that age, you can make super contributions but you can’t draw down your super unless you quit work. Once you are 65 you can access your super. So the change allows 65 and 66-year-olds to have two bites at the cherry. They can make contributions without any hard yakka, and are also free to pull out money.

The changes could help people who have limited super build balances in their later years if they somehow come into some cash.

It is always best to consult your Financial Adviser when planning for retirement to make sure you are taking full advantage of all the superannuation guidelines and maximising your income potential.

For more Information contact Mark Digby at Maher Digby Securities Pty  Ltd - Financial Advisers – AFSL No. 230559 Ph: 07 5441 1266 or visit our website www.maherdigby.com.au  This document was prepared without taking into account any person’s particular objectives, financial situation or needs. It is not guaranteed as accurate or complete and should not be relied upon as such.  Maher Digby Securities does not accept any responsibility for the opinions, comments, forward looking statements, and analysis contained in this document, all of which are intended to be of a general nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend consulting a financial advisor

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