Superannuation rules for over 65s

Some superannuation rules change once you are over the age of 65. Generally, it’ll be easier to withdraw money from your super fund, but as you approach the end of your 60s it can also get harder to make contributions.

Can I access my super when I am over 65?

You can access your super when you turn 65 years old, regardless of whether you have retired or are still working. You can access your super earlier than this, but you’ll typically need to have reached your preservation age and retire or start a transition to retirement income stream. These can help you to understand how much super you can withdraw after 65.

If you are 60 years old or over, super withdrawals may also be tax-free. According to Moneysmart, this usually will be the case if you are withdrawing your super as a super income stream or a lump sum from a taxed super fund. However, you may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.

You’re also currently eligible to access the Age Pension once you are 67 years or over, provided you meet the income and asset tests, and residency rules.

Can I contribute to super if I am over 65?

You can contribute to your super if you are over 65, but there are different rules that apply if you are 67 to 75. If you are under 67, the Australian Taxation Office (ATO) says your fund can accept all types of super contributions (including personal contributions) regardless of whether you have retired or are still working.

If you are 55 or older, you may also be able to make a downsizer contribution to your super from the proceeds of selling your home. The normal annual contribution caps apply. Concessional contributions (such as compulsory employer contributions, salary sacrifice payments and personal contributions you can claim as a tax deduction) are currently capped at $30,000.

Non-concessional contributions (such as personal contributions from your after-tax income and those you cannot claim as a tax deduction) are currently capped at $120,000. But, as the ATO notes, if you are under 75 you may be able to use the bring-forward rule to make non-concessional contributions of up to three times the annual cap – so $360,000.

Can I contribute to super after I am 75?

According to the ATO, if you are 75 years of age or older, your fund will accept compulsory employer contributions and downsizer contributions. In the 28 days after the end of the month in which you turn 75 years old, your fund can accept both personal and spousal contributions.

What is the work test?

To meet the work test, the ATO says you must be gainfully employed for at least 40 hours during a consecutive 30-day period. You can be employed or self-employed and you may work full-time or part-time. This is an annual test, which means you only need to meet the test once per financial year.

What is the work test exemption?

If you no longer meet the work test, the work test exemption lets you make voluntary contributions for an additional 12 months after the end of the financial year in which you last met the test. But your super balance will need to be less than $300,000 at the end of the previous financial year. This is a one-time exemption.

Once you turn 75, you are generally not able to make voluntary contributions to your super (except downsizer contributions) beyond 28 days after the end of the month in which you turn 75.. But no matter what your age is, you will still be able to receive compulsory super contributions from your employer as long as you are 18 years old or over.

How much can I contribute to super after retirement?

After you have retired, you can still contribute to your super up to the age of 75. The normal contributions caps apply and you may be able to use the bring-forward rule. If you need help with your super, consider contacting your super fund or speaking to a financial adviser.

Cover image source: PeopleImages.com – Yuri A/Shutterstock