QUESTION:
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I turn 66 in a couple of months and hope to retire in the next 12 months. Although I have worked for 30 years, with a break for a family, I have only been able to accumulate super in the past 15 years. I have $60,000 and plan to add some savings (currently in a term deposit) to bring it to about $100,000. Can I move savings into my superannuation now in readiness for a small allocated pension without being penalised for adding a lump sum to my super close to retirement?
ANSWER:
If you are between 65 and 75 you can contribute to super as long as you pass the work test which involves working for at least 40 hours in 30 consecutive days. Therefore, you can move your savings to super but you need to take advice as to whether superannuation is an appropriate vehicle for you. The main purpose of is to save tax but if your total financial assets are no more than $100,000 when you retire, you will not be paying tax in any event. Certainly, salary sacrifice your income down to $35,000 a year before you retireme but then decide whether it is better to remove all your money from super after you retire.