From 1 July 2022, it was 60 years of age or over, and prior to this, it was 65 years of age and over. All contributions can be accepted, except downsizer contributions.
Once you hit age 75, your super fund is generally unable to accept further contributions into your super account (see more details below).
You can contribute to your super at any time up to age 74, even if you're not working. If you want to claim a tax deduction for your personal contributions you'll need to meet the work test, or work test exemption rules.
If you are 75 years or older, the super fund cannot accept any voluntary (concessional and non-concessional) contributions from you apart from mandated (super guarantee) employer contributions which can be contributed at any time regardless of age.
It's perfectly okay to start making super contributions again if you retire but later change your mind and re-enter the workforce. That includes if you have made a written declaration to your super fund you intended to retire and have taken a lump sum super payout or are receiving ongoing payments from your super fund.
Claiming after-tax contributions as a tax deduction reduces your taxable income whilst increasing your savings for retirement. It can be particularly beneficial because the contribution is taxed at 15% in the super fund instead of your marginal rate of tax which can be a lot higher.
As a single person you can have up to $609,250 and still get the pension if you are a homeowner and $833,750 if you are a non-homeowner.
If you're close to retiring use the budget planner to estimate how much money you expect to spend when you stop working. If you own your own home, a rule of thumb is that you'll need two-thirds (67%) of your pre-retirement income to maintain the same standard of living in retirement.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
Personal contributions can be made regularly from your after-tax pay, or as a lump sum at any time through the year. You must have supplied your TFN to your super fund before it will accept personal contributions. Your super fund can accept personal or voluntary contributions from you until you reach age 75.
Anyone under 65 can contribute to super. It does not matter if you are employed, self-employed, not working or retired. Your spouse and/or employer can also make contributions on your behalf.
Understand how much you can contribute
You can contribute up to $110,000 each year in non-concessional contributions. If you have more than one super fund, all your contributions are added up and count towards your caps. If you go over these caps, you may need to pay extra tax.
Tax when you withdraw your super as a lump sum
If you are aged 60 or over, super amounts that you access as a lump sum are generally tax free. If you've reached your preservation age, but are under age 60, no tax is payable on the tax-free component of your withdrawal.
Super Contributions Under Age 67 and Retired
While you are under age 67, you are free to make either concessional or non-concessional contributions to super, regardless of your employment status. Also, if you are over age 60, you are eligible to make the downsizer contribution.
A recent study determined that a $1 million retirement nest egg will last about 19 years on average. Based on this, if you retire at age 65 and live until you turn 84, $1 million will be enough retirement savings for you.
A common rule of thumb is that if you want to leave the workforce at 60, you will need about 15 times the amount you have calculated for your annual after-tax retirement expenses. So if you estimate $60,000 per year, then you will need $900,000.
For example, if you are a single homeowner you can get a full pension with an asset limit of $270,500. As a couple with a home and combined assets your limit is reached at $405,000 to receive a full pension.
When you reach Age Pension age. We count your superannuation both: in the assets test - the value is the balance on your latest statement.
Savings in super can do more
When you save money in a regular bank account, you're earning interest at a fixed rate. In super, you have access to lots of ways to invest your savings, giving you more options that could earn a better return and see your savings grow faster.
Once a person reaches age 60, all withdrawals from their super are tax-free and, provided their entire fund is in pension mode, as yours is, there is no tax on the earnings of the fund either.
The only way to avoid paying super contributions tax is to make a non-concessional contribution instead of a concessional contribution. Sure, you don't get to claim a tax deduction for non-concessional contributions, but you won't need to pay contributions tax either.