This could be because your expenses are greater than you anticipated, there has been a change in your circumstances, or you are just anxious about running out of money and outliving your retirement fund.
Returning to full or part-time employment may seem like the obvious solution, however, there are some important implications to take into account.
You would have accessed your super at retirement and depending on your age and personal circumstances, you may have signed a declaration stating you intend to never return to work again. Now that you want to re-enter the workforce, you may be required to submit proof to the ATO that your initial intention to retire was genuine.
You can still return to work on a casual basis up to 10 hours per week without losing access to your Super. However, additional contributions made to your account after you met the definition of retirement will be preserved until you meet another condition of release.
If you are 65 years or older you can access your Super regardless of whether you choose to work or not.
Irrespective of age, if you withdraw a regular income stream from your Super, you can continue to access these payments.
If when returning to work you earn more than $450 a month, your employer is required to make Super contributions to a fund on your behalf until you reach 75 years. In terms of voluntary contributions, if you are 67 years and over, you will need to meet a work test (where you must be employed for a minimum of 40 hours over a consecutive 30-period during a financial year) or be eligible for the recent retiree work test exemption.
From age 75, you are likely to be ineligible to make voluntary contributions and will have to look at downsizer contributions as an option.
With regards to your Age Pension, your earnings could impact your pension entitlements. You could be eligible for the Work Bonus scheme which reduces the amount of employment income Centrelink applies to your rate of Age Pension entitlement via the income test.
If you are wanting to go back to work for reasons other than financial, you can do so in a volunteer position without it affecting your Super or Pension.
Give us a call on 08 9445 2955 or book an appointment for specific advice