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Re: Working part time on a superannuation income stream

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Newbie

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HI,

I will be 63 when I retire in a year and will be collecting a superannuation income stream. I am also studying at the moment and hope to practice my new skills and knowledge on a part time basis when I retire. I will not be collecting a government pension.

1. Can I work a couple of days a week when I retire?

2. If so, is my super income stream then taxed as an income?

 

Thanks

Doug

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ATO Certified

Devotee

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Hi @Doug

 

* I'll try to help, however please note this isn't financial advice.

 

Your Question) I will be 63 when I retire in a year and will be collecting a superannuation income stream. I am also studying at the moment and hope to practice my new skills and knowledge on a part time basis when I retire. I will not be collecting a government pension. Can I work a couple of days a week when I retire?

 

You can generally access your super when;

  • you turn 65 (even if you haven’t retired), or
  • you reach preservation age and retire, or
  • under the transition to retirement rules, while continuing to work.

When you’re accessing your super by way of the ‘retirement’ condition of release, your super fund trustee must be reasonably satisfied you never again intend to become gainfully employed, either on a full-time basis (at least 30 hours each week) or on a part-time basis (at least 10 hours and less than 30 hours each week). People often return to work after retiring, but at the time of retiring the intention to retire must have been genuine.

 

If you would like to access an income stream in the coming year whilst working on a part time basis, you might want to read more about transition to retirement income streams (TRIS). A TRIS can allow people who have reached their preservation age to access to their super benefits without having to completely retire or leave their job, however there are several requirements and considerations for a TRIS.

 

 

Your Question) If so, is my super income stream then taxed as an income?

 

Transition to retirement income streams are taxed in the same way as other income streams, so if you’re over 60, generally any super income from a ‘taxed source’ will be tax-free. Refer here for more information.

 

There’s a lot to consider above, and I haven’t addressed every consideration/possibility, so I’d recommend you spend some time reading the ATO website, speaking to your fund, and maybe even seek the help of a registered financial planner or tax agent to determine what’s right for you.

 

Hope this still helps!

 

(ATO Employee here voluntarily)

2 REPLIES 2
Highlighted

Best answer

ATO Certified

Devotee

Replies 1

Hi @Doug

 

* I'll try to help, however please note this isn't financial advice.

 

Your Question) I will be 63 when I retire in a year and will be collecting a superannuation income stream. I am also studying at the moment and hope to practice my new skills and knowledge on a part time basis when I retire. I will not be collecting a government pension. Can I work a couple of days a week when I retire?

 

You can generally access your super when;

  • you turn 65 (even if you haven’t retired), or
  • you reach preservation age and retire, or
  • under the transition to retirement rules, while continuing to work.

When you’re accessing your super by way of the ‘retirement’ condition of release, your super fund trustee must be reasonably satisfied you never again intend to become gainfully employed, either on a full-time basis (at least 30 hours each week) or on a part-time basis (at least 10 hours and less than 30 hours each week). People often return to work after retiring, but at the time of retiring the intention to retire must have been genuine.

 

If you would like to access an income stream in the coming year whilst working on a part time basis, you might want to read more about transition to retirement income streams (TRIS). A TRIS can allow people who have reached their preservation age to access to their super benefits without having to completely retire or leave their job, however there are several requirements and considerations for a TRIS.

 

 

Your Question) If so, is my super income stream then taxed as an income?

 

Transition to retirement income streams are taxed in the same way as other income streams, so if you’re over 60, generally any super income from a ‘taxed source’ will be tax-free. Refer here for more information.

 

There’s a lot to consider above, and I haven’t addressed every consideration/possibility, so I’d recommend you spend some time reading the ATO website, speaking to your fund, and maybe even seek the help of a registered financial planner or tax agent to determine what’s right for you.

 

Hope this still helps!

 

(ATO Employee here voluntarily)

Newbie

Replies 0

Thank you for the advice, it has helped a lot.

Cheers

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