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Can I add money to my super after 65?

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I am 65 and have come into a bit of money and want to add it to my super. I am on an allocated pension but still do a bit of work on my son’s farm, which I still own a part of. Can I add to my pension with this extra money? I know there is a work test but I do a bit on the farm and I do draw some income and I have a rental property, which gives me some business income.

The rental income won’t count for the work test as it is regarded as passive income. If you’re trading shares it would be treated the same way. However, the farm work and income is promising.

Under the work test you have to work 40 hours in 30 consecutive days. In other words, you have to get a week’s work in one month or you could work five days over a month and beat the test. This applies to anyone between 65 and 74, which means you can make a non-concessional contribution up to $150,000. In terms of the money and your pension, you can’t add to it but you can start a new accumulation fund where you can add to this and you can convert this to pension mode whenever you like.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, December 09, 2011

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