Retirement is supposed to be when you can take full advantage of your super. This is why most people concentrate on adding as much to their super as possible before retirement. You can choose the options of resuming work after retirement or continuing to work past your official retirement age and make super contributions – but once you hit the age of 67, this will become a little more complicated. This is because of something called the work test. 

If you are almost at retirement age and want to gain more insight on contributing to your super later on, this article is for you! Here you will learn more about the work test and how you can continue contributing to your super when you reach 67. 

Making Super Contributions After the Age of 67

Many factors come into play when it comes to planning your retirement. If you plan on continuing to work even after you officially retire, you may still be able to continue putting money into your super. However, this will depend on the work test and your eligibility. 

What Is the Work Test?

Before getting into anything, it is essential to define the work test first. The work test, also known as the superannuation work test, will require you to prove that you are still “gainfully employed” and earning money even after you have reached retirement age. The general rule is that you need to find a job that renders you at least 40 hours over a 30 day work month. That is just the bare minimum, and you may still opt to work full-time if that is what you prefer. 

However, it is worth noting that the ATO will not consider domestic arrangements like babysitting and home cleaning for your relatives to be “gainful employment”, even if you are getting compensation for these arrangements.

Applying for the Work Test

For your employment to be considered as means to continue your super contributions, you will need to obtain a work test declaration. This document will not require you to present any proof when you initially submit the paperwork. However, it is a good idea to keep supporting documents such as payslips and other documentation, just in case, you must submit proof of employment down the line.

How Much Can You Contribute?

You may be able to contribute as much as the contribution caps will allow. You may be able to contribute up to $27,500 for concessional and $110,000 for non-concessional contributions after taxes. However, this is general computation. It is still best to seek advice from a financial adviser regarding the number of super contributions you will make depending on your situation. 

Deciding on Your Super Contributions

The best way to ensure that you will be making all the right financial decisions concerning your retirement is to seek advice from a financial adviser. These professionals will ensure that you are aware of your current financial situation and recommend ways to help you hit your financial goals and targets before you retire. 

If you need trusted financial advice in Sydney, come to Sydney Wealth Advisers! Let us help with your retirement planning in Sydney today! Book your complimentary initial financial planning meeting here.