How Superannuation Works After Retirement in Australia

Retirement is a significant milestone in life, and understanding how your superannuation works after you retire is crucial for a secure and comfortable life post-retirement.

Understanding Superannuation

Superannuation, often referred to as ‘super’, is a long-term savings arrangement designed to provide income for your retirement. The money in your super fund comes from contributions made by your employer, and ideally, topped up by your own contributions. Over time, these contributions are invested, so they grow to provide a nest egg that you can use to fund your retirement.

Accessing Superannuation After Retirement

When you reach your preservation age and retire, you can start to access your super. The preservation age for most Australians is 60 years old. You can access your super as a lump sum, a regular income stream (pension), or a combination of both.

Superannuation Contributions After Retirement

Even after you retire, you might be able to make contributions to your super. This depends on your age, the type of contribution, and whether you meet the work test or work test exemption. However, there are limits to how much you can contribute to super in a financial year before you have to pay extra tax.

The Role of a Financial Adviser

Navigating the complexities of superannuation can be challenging. That’s where a financial adviser comes in. A financial advisor can provide valuable guidance, helping you understand the rules and regulations around superannuation, and ensuring your wealth is distributed according to your wishes.

At Willow Wealth Partners, we’re committed to providing personalised financial advice tailored to your unique situation. Our team of experienced advisers can help you understand how superannuation fits into your financial plan.

Book in a Complimentary 30-Minute Meeting Today

Ready to take control of your super? Book a complimentary 30-minute meeting with one of our Financial Advisers today. We’re here to help you understand your super and plan for a comfortable retirement.

Please note that this article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and seek professional advice before making any investment decision.

This information is true and correct as of 1 July 2024, prior to making any changes we recommend you read the Government resources and seek Financial Advice prior to making any changes.