Southern Advisory Financial Planning Sydney
(02) 9524 6711
  • Home
  • About Us
    • Sean Thomas
    • Kade Anthony
  • Services
  • Insurance
    • Life Insurance
    • Income Protection Insurance
    • Trauma Insurance
  • Investment
  • Wealth Management
    • Superannuation
  • Blog
  • CONTACT US

Can I go back to work if I’ve taken my super?

20/8/2017

0 Comments

 
Picture

Generally, you can, but if you previously declared your permanent retirement, you may need to prove your intention was genuine at the time...

The most common reason retirees return to full or part-time employment is financial necessity, followed closely by boredom, but there are rules you may need to be aware of depending on your circumstances.

Before we get into it, you generally will have only been able to access your super if you reached your preservation age and retired, ceased an employment arrangement after age 60, or turned 65.


What is your situation?

I reached my preservation age and declared retirement
If you reached your preservation age and declared that you were permanently retired, this would typically have given you unlimited access to your super.

If your personal circumstances have since changed, it is possible for you to return to the workforce; however your intention to retire must have been genuine at the time, which is why your super fund may have asked you to sign a declaration previously stating your intent.

Depending on the super fund, you also may be required to prove your intention was genuine to the Australian Taxation Office.


I ceased an employment arrangement after age 60
From age 60, you can cease an employment arrangement without declaring your retirement and opt to access your super as a lump sum or in periodic payments (which you may receive via an account-based pension).

If you’re in this situation, as there was no intention for you to declare your retirement permanently, you can return to work without any issues.


I’m 65 or older
When you turn 65, you don’t have to be retired or satisfy any special conditions to get full access to your super savings, so regardless of whether you’re accessing super or not, you can return to work.

What happens to your super?

Regardless of which group (above) you fall into, if you have begun drawing a regular income stream from your super savings, you can continue to access your income stream payments irrespective of whether you return to full or part-time employment.

Rules around future contributions

Your employer is broadly required to make super contributions to a fund on your behalf at the rate of 9.5% of your earnings, once you earn more than $450 in a calendar month.

This means you can continue to build your retirement savings via compulsory contributions paid by your employer and or voluntary contributions you make yourself.

However, if you’re age 65 and over, and intend on making voluntary contributions, you must first satisfy a work test requirement, whereby you need to work for a set period of time in the financial year, specifically 40 hours within a 30-day period. Voluntary contributions can’t be made once you turn 75.

Also, keep in mind super rules changed on 1 July 2017, which means:
  • Before-tax (concessional) contributions are now capped at $25,000 per annum
  • After-tax (non-concessional) contributions are capped at $100,000 per annum
  • You can’t make further after-tax contributions once your super balance reaches $1.6 million.

Effects on your Age Pension

If you’re receiving a full or part Age Pension, you’d know that Centrelink conducts an income test and an assets test to determine what you get paid.

Your new employment income will be taken into account as part of this assessment, so make sure you’re aware of whether your earnings could impact your Age Pension entitlements.

Meanwhile, for those eligible for the Work Bonus scheme, the amount you’re able to earn before your pension is reduced may be increased.


Where to go for assistance
​

For information and tips around re-entering the workforce, check out the Department of Employment website. It includes details about the government’s jobactive service and the New Enterprise Incentive Scheme for those looking to become self-employed.

There are also websites like Older Workers and BeNext, which focus specifically on mature-age candidates, if you’re looking for job opportunities.

If you have further questions on how a return to work could impact you, Southern Advsiory and one of our Advisors will assess your individual situation.
 
Source: amp.com.au
0 Comments

What’s your most important asset?

6/8/2017

0 Comments

 
Picture
It's not your house or car but your ability to earn a living - and it's commonly underinsured... 

When it comes to insurance, many people adopt a ‘she’ll be right’ attitude, but looking at the statistics, there’s more chance of something going wrong than you might think.

Research has found that one in five families will be impacted by death, a serious accident or illness that leaves a parent unable to work, but 95% of families don’t have adequate levels of insurance to cover this situation according to the Lifewise / Natsem Underinsurance Report.

What types of cover are available?
Insuring yourself and your income can allow you to maintain your lifestyle and living arrangements, and give you comfort in knowing you can still meet your financial commitments - things like your home loan, rent, card repayments, bills, kids’ education fees, and treatment and rehabilitation costs should you need it.

Here’s a rundown of the four main types of cover available:
  • Life insurance pays a lump sum on your death or the diagnosis of a terminal illness;
  • Trauma insurance pays a lump sum on the diagnosis or occurrence of a specific illness;
  • Income protection provides a replacement income of up to 75% of your regular income if you’re unable to work due to illness or injury;
  • Total and permanent disability (TPD) pays a lump sum if you become disabled and are unable to ever work again.

How much is enough?
It’s important to choose the right type of insurance for your situation, which will be impacted by your personal circumstances, such as whether you have a partner or children, and the level of your debts.

It’s also important to understand how much insurance you need so you are not underinsured – nor paying for unnecessary cover.

One of our Financial Advisors can help determine how much cover you need if you are not already covered or can assist you in reviewing your cover to make sure it is current and suits your circumstances.

What else do I need to consider?
Some people believe that if they are young or healthy they don’t need life insurance. However, circumstances can change quickly, and it generally costs more to buy insurance when you’re older, so securing cover when you’re young could be a good idea.

Another common belief is that if you get sick or injured the government will pick up the bill. And while it’s true that workers’ compensation and benefit payments may apply in some cases, it’s unlikely any payments will fully replace the income lost, or cover all of your ongoing financial obligations.

If you need more information please do not hesitate to Contact Us.
 
Source: amp.com.au
 
0 Comments

    Author

    Sean Thomas - Financial planner 

    Archives

    September 2024
    June 2024
    December 2023
    October 2023
    March 2023
    November 2022
    August 2022
    July 2022
    May 2022
    February 2022
    November 2021
    September 2021
    July 2021
    May 2021
    March 2021
    December 2020
    June 2020
    March 2020
    January 2020
    September 2019
    July 2019
    April 2019
    March 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    April 2017
    March 2017
    February 2017
    January 2017
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    January 2016
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    March 2015
    February 2015
    January 2015
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    March 2014
    February 2014
    January 2014
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    February 2013
    January 2013
    September 2012
    August 2012
    July 2012
    June 2012

    Categories

    All
    Insurance
    Investment
    Superannuation

    RSS Feed

Powered by Create your own unique website with customizable templates.