Can I withdraw my super at 65 and keep working?
This is a common question.
There are a number of different ‘Conditions of Release’.
The mother of all Conditions of Release is reaching age 65. This is because turning age 65 provides you with full, unrestricted access to your superannuation savings regardless of whether you are still working or not. Most other Conditions of Release, while under age 65, are employment related.
Reaching age 65 provides greater flexibility in regards to accessing super and continuing to work, but there are some things you need to consider.
Can I Withdraw My Super At 65 and Keep Working?
Withdrawing your super at 65 has no impact on your eligibility to continue working. Withdrawing your super after reaching age 65 does not require you to stop work.
One of the definitions of ‘Retirement‘ rules for superannuation access purposes is simply turning age 65. At this age, you are able to access all or some of your super as a pension income stream, withdraw it as a lump sum, or a combination of both.
And yes, you can continue working.
Regardless of how you access your super (pension income stream/lump sum withdrawal) or how much your withdrawal, you are able to continue working, despite being over age 65. Even if you withdraw the whole lot!
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Can I Contribute To Super after Reaching Age 65?
Under the superannuation rules for people over 65, you are able to make or receive contributions into your superannuation account while you are still working.
If you are an employee, you will likely receive mandatory employer SG contributions at the going rate or, as a self-employed person, you may wish to make personal deductible contributions up until age 75. These are known as Concessional Contributions.
After-tax contributions are also permitted provided you are still working up until age 75. After-tax contributions are referred to as Non Concessional Contributions.
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To make or receive contributions over the age of 65, you will need to satisfy the superannuation work test (click here to read more).
However, you do not need to meet the work test in the first financial year after the financial year that you last met the work test, if you have a superannuation balance below $300,000.
Returning to Work After Accessing Superannuation
There you have it! You are able to return to work or continue working if you withdraw your super after age 65 under the superannuation retirement rules.
Tax on Super Withdrawals Over Age 65
All pension income and lump sum withdrawals are received completely tax free for anyone over age 60, provided it is sourced from the ‘tax-free‘ or ‘taxable (taxed)’ components of your superannuation balance.
Withdrawals from the ‘taxable (untaxed)’ component will be assessable for tax whether taken as an income stream or lump sum payment. You can find out the tax components of your superannuation account by speaking with your superannuation provider.
You can read more about lump sum withdrawals from super over 65 by clicking here.