Home / Blog / How You Can Grow Your Super No Matter What Age You Are

How You Can Grow Your Super No Matter What Age You Are

August 30, 2021 | Financial Advice

What Superannuation Rules Apply at My Age?

How much you add to your super could be the difference between a comfortable retirement and one where you worry about running out of money.

However, depending on your age, there are limitations on how much you can contribute to your superannuation balance.

The age restrictions and kinds of super contributions you made may have altered many times in recent years. The good news is as more Australians retire every day, the age criteria for making super contributions are becoming more flexible.

While contributing to superannuation provides tax benefits and enables you to build your retirement nest egg, keep in mind that such contributions are not available until you satisfy a superannuation condition of release.

In general, you will be eligible to receive your superannuation benefits for the first time after reaching your superannuation preservation age and meeting the superannuation criteria of retirement.

However, if you reach your preservation age while still working, you may have restricted access to your assets by commencing a transition to retirement plan.

Super Contributions Under Age 67

Those under the age of 67 are not restricted in the kind of contributions they can make to their superannuation account.

A person under the age of 67 is only limited by the relevant contribution restrictions and cannot contribute if their entire superannuation balance exceeds the transfer balance maximum.

If you fall in this age bracket, you will be eligible to make:

  • Employer contributions
  • Salary sacrifice contributions
  • Personal deductible (Concessional) contributions
  • After-tax (Non-Concessional) contributions
  • Spouse contributions

Super Contributions Aged Between 67 and 74

In this age bracket, your employer is free to make mandatory employer Superannuation Guarantee payments to your superannuation account. However, the work requirement must be satisfied to make other contributions such as salary sacrifice contributions, self-employed contributions, personal non-concessional contributions, and spouse contributions.

Furthermore, the work test must be fulfilled throughout the financial year in which the contribution is made and previous to your contribution.

When it comes to spouse contributions, the receiving spouse must also satisfy the employment requirement.

Recent retirees aged 67–74 may make non-concessional super contributions by 1) fulfilling the work test requirements, or 2) for a period of 12 months from the end of the financial year in which they last met the work test if their superannuation balance is less than $300,000 (one-time only).

Super Contributions Aged 75+

At this age, the only contributions that a superannuation fund may receive on behalf of a member are employer SG payments or award contributions, both of which are unrestricted.

Contributions from home downsizers are also allowed but any other kinds of donations cannot be made or accepted.

Work Test Super Contributions Over Age 67

To make or receive super personal contributions beyond the age of 67 (but under the age of 75), you must generally satisfy the superannuation work test. Unless the work test exemption is met, the work test is defined as working at least 40 hours over 30 days in the fiscal year the contribution is made and before the contribution is made.

Bonus Tip: Downsizer Contributions

If you cannot satisfy the employment test or work test exemption requirements, there is another option to increase your super account – make a downsizer contribution. If you are 65 or older, you may make a downsizer contribution of up to $300,000 into your super account using the proceeds from the sale of your property.

Couples may contribute up to a total of $600,000 to their super accounts if both spouses make a downsizer contribution.

Regardless of your employment position or previous super contributions, you may make a downsizer contribution. There is no upper age restriction for making a downsizer donation at the moment. Downsizer contributions are not tax-deductible and do not count towards your average annual non-concessional contributions cap.

Do You Need Superannuation Advice in Port Macquarie?

If you need reliable superannuation advisers in Australia, Coastal Advice Port Macquarie can help! Our financial specialists can advise you with superannuation advice and retirement plans so you can look forward to your golden years.

Contact us and book a complimentary meeting with our independent financial advisers today!

DISCLAIMER: Coastal Advice Group Pty Ltd is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

(Trading names of Coastal Advice Group Pty Ltd include Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Compass Advice Port Macquarie, Wealth for Life Financial Planning and Coastal Advice Group Brighton/Somerton Park).

The views expressed in this publication are solely those of the author; they are not reflective or indicative of the Licensee’s position and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.

Any advice or information in this publication is of a general nature only and has not taken into account your personal objectives, financial situation and needs. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.

Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product, it is important for you to consider these matters and to seek appropriate advice.

Past performance is not a reliable guide to future returns.

Any tax estimates provided by us in this publication are intended as a guide only and are not intended to be a substitute for specialised taxation advice. We are not registered tax agents and you should consult with a registered tax agent to determine your liabilities, obligations or claim entitlements that arise or could arise, under taxation law.

The information in this publication reflects our understanding of existing legislation, proposed legislation, rulings etc as of the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.

The publications on this site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia.