Superannuation Contributions After Retirement. What are the Rules?

So, you’re retired, but you still want to make contributions to super?

Okay, I see what’s going on here. You’ve done the calculations and can see the benefits of contributing to super, but you just want to double check the superannuation retirement rules. Am I right?

And believe you me, there are a few rules you need to be mindful of when contributing to super after retirement, so let’s take a look.

Superannuation Contributions After Retirement

Your eligibility to make contributions to superannuation after retirement is based on five factors:

1. Your age;
2. The type of contribution being made;
3. Your account balance;
4. When you retired; and
5. Whether you will continue to work in any capacity.

There are also other types of contributions that can be made to super designed specifically for people who are already retired.

Related article: Superannuation Advice

Super Contributions Under Age 67 and Retired

While you are under age 67, you are free to make either concessional or non-concessional contributions to super, regardless of your employment status.

Also, if you are aged 55 or more, you are eligible to make the downsizer contribution.

Super Contributions Aged Between 67 to 74

If you are aged 67 or more, but below age 75*, you are able to make personal contributions and downsizer contributions. You can also receive mandated employer contributions.

However, you are unable to claim a personal tax deduction for personal contributions (i.e. personal concessional contributions) when between the ages of 67 and 74* (inclusive), unless you meet the superannuation work test or work test exemption.

The superannuation work test requires you to:

• have worked at least 40 hours over any consecutive 30-day period in the financial year that the contribution is made and prior to the contribution being made (known as the work test); or
• have a total super balance below $300,000 and have met the work test in the previous financial year, (known as the work-test exemption – which can only be applied in one financial year);

*Age 75 is defined as 28 days after the month in which you turned 75.

Related Article:  Super Contributions Over 65

Super Contributions Over Age 75

Being age 75 or over means you can only receive mandated employer contributions and can only make downsizer contributions.

How Much Can A Retiree Put Into Super?

You always need to be mindful of superannuation contribution caps, as well as the limitations on non-concessional contributions if your total super balance exceeds or is near the transfer balance cap.

As a retiree, you are governed by the same contribution caps as the employed and self-employed.

The general non-concessional contribution cap is $110,000 per financial year and the general concessional contribution cap is $27,500 per financial year.

If you are under age 75, you may be able to utilise the non-concessional contribution bring-forward rule. In regards to concessional contributions, you may be eligible to utilise any carry-forward unused concessional contributions while under age 75.

If your total superannuation balance exceeds the transfer balance cap of $1.9 million, you are unable to make any non-concessional contributions.

Read more: Superannuation Transfer Balance Cap Explained [2024]

It’s also important to understand the rules around returning to work after retirement. Here’s a video to help explain:

More details about the types of contributions that can be made to superannuation and how much you can contribute can be found here.

Remember, making contributions to super can be a great tax-effective retirement planning strategy, but before making any contributions to super, you should keep in mind that any amount contributed to super can only be accessed again once you have met a superannuation condition of release, such as retirement or reaching age 65.

Our financial planning firm, Toro Wealth, specialises solely in helping 50 to 70 year-olds optimise their financial position in the lead up to retirement. If you’re interested in learning more about our service and cost, click here.

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