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How to contribute to super at age 65 and over

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My mum is retired, is 66, and finds her super is dissipating too quickly and so she has found some part-time work. Fortunately, she has recently received an inheritance of $175,000 and she would like to add it to her super but she has been told that those over 65 can’t add to their super when they are fully retired. Is this true? And do you have any ideas for her? By the way, can she keep on receiving her pension while working?

You can make super contributions without any barriers until age 65.

After that if you’re working you can make contributions and there’s a work test, which qualifies you to make contributions. The test is to work 40 hours in any 30 consecutive days and so a job at the Royal Easter Show or at exam time could make it possible to make contributions to your super fund. This test applies until you are 75 and from that age, no more contributions are accepted.

So your mum will be able to make a non-concessional contribution of $150,000 in the first year and then $25,000 in the next year. If she was under 65, she could put it all in but the three-year bring forward rule cuts out for those 65 and over.

Also she will get nine per cent super from her boss at the part-time job and so this will help build up her super. And yes, she can work and receive her super.

One final thing, you should take your mum to Centrelink to see if she can access a government part-pension and if she already is, make sure you know how the job and the inheritance would affect her pension.

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: Tuesday, March 06, 2012

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