Super: not just for workers, but for retirees as well

To get the most out of your super fund, the first step is to make sure you put sufficient amounts in. If you work, you can do this by increasing your contributions, either on a regular basis or by depositing lump sums from time to time. But what if you've already retired ? Is it too late to make further contributions in order to increase super benefits ?

This strategy shows how you can contribute to super even though you may no longer be gainfully employed.

How does the strategy work?

The key to this strategy is to put yourself in a position where you are eligible to contribute to super. For example, if you are under age 65, you can contribute to super if you:

• are currently working at least 10 hours per week

• have worked at least 10 hours per week at any time during the previous two years

• have stopped work due to ill health and are unable to resume similar work, or

• are on approved leave from an employer for the purpose of raising children (maximum of 7 years).

If you are between 65 and 70, you can contribute if you are currently working at least 10 hours per week.

You cannot contribute if you are over age 70, but you can make spouse contributions at any age provided your spouse is under age 65.

The main advantage in being able to contribute in retirement is that it allows you to get additional money into super that can be used to purchase a tax- effective income stream, such as an allocated pension. Allocated pensions can only be purchased with superannuation money.

The Benefits

• Increase your super nest egg to provide tax planning opportunities with your retirement income.

• Assuming you can contribute, you may also be eligible for a tax deduction or rebate.