How long can I contribute tot super?
Can I have super and a pension funds at the same time?
What are age limits for contributing extra to super?

If you are retired already, you can still open a new superannuation account, subject to meeting the age eligibility I’ve just explained.

As a matter of fact, as long as you are within the age range, you can decide how you wish to split your savings:

You can keep all your savings in super for as long as you wish, there is no rule that you have to move funds to an income stream at all.

It would be a bit silly though, considering that the pension account is 100% tax-free haven, no income tax, no capital gains tax, no tax payable on your pension payments,

You can transfer only a portion of your super to a pension account and keep the rest in super, if this is a better strategy for you

If you already have savings in any kind of an income stream, so you have retired, but you are within the allowable age to make contributions, you can always open a new superannuation account and make your contributions up to the limit.

If you have retired and you moved money to an income stream, you can move them back to super if needed

If you already retired, there is no rule you have to have one income stream, as a matter of fact you can have as many as you wish, which often I could recommend to my clients for the purpose of assets security, income protection, diversity or Age Pension benefits.

The same applies to your super, there is no rule that says you can only have one super account, you can have as many as you need.

Super funds advertise superannuation consolidation as a highly recommended strategy as you can save on ongoing fees. And sometimes it is correct, however often there are reasons why I would recommend more than one super account, and in most cases, this is for estate planning or tax reasons.

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Katherine Isbrandt of About Retirement
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Email: hello@aboutretirement.com.au

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Superannuation, also known as retirement pension, is a key component of many people’s financial planning for the later stages of life. Understanding the rules around contributions to super is essential for making the most of this important retirement savings vehicle.

One common question that arises when it comes to super contributions is: how long can I contribute to super? The good news is that there are no age limits on contributing to super in Australia. This means that as long as you are still working and earning an income, you can continue to make contributions to your super fund.

However, there are some rules and limitations to be aware of when it comes to super contributions. For example, there are caps on how much you can contribute to super each year before you incur additional tax. These caps apply to both before-tax (concessional) contributions, such as employer contributions and salary sacrifice contributions, and after-tax (non-concessional) contributions, such as personal contributions made from your own savings.

For the 2021-2022 financial year, the concessional contributions cap is $27,500 for most individuals. This includes employer contributions, salary sacrifice contributions, and personal deductible contributions. Exceeding this cap can result in additional tax being applied to the excess contributions.

The non-concessional contributions cap for the 2021-2022 financial year is $110,000. This cap limits the amount of after-tax contributions you can make to your super fund each year. This cap applies to personal contributions made from your own savings, not including contributions made through salary sacrifice arrangements or employer contributions.

It’s also worth noting that there are restrictions on making contributions to super once you reach age 67. From age 67 onwards, you must meet a work test in order to make contributions to super. The work test requires you to have been gainfully employed for at least 40 hours in a consecutive 30-day period during the financial year in which the contributions are made.

There are also other age-related considerations to be aware of when it comes to super, such as the age at which you can access your super savings. Generally, you can access your super once you reach preservation age, which ranges from 55 to 60 depending on when you were born. However, accessing your super before you reach age 60 may have tax implications, so it’s important to consider this when planning your retirement.

In conclusion, there is no age limit on contributing to super, as long as you are still working and earning an income. However, there are caps and rules to be aware of when making contributions to super, including caps on concessional and non-concessional contributions and the work test requirement for individuals aged 67 and over. Understanding these rules can help you make the most of your super savings and plan effectively for your retirement.