The good news is that, yes, you will usually be allowed to return to work after retiring and accessing your super benefits. Even if you’ve taken a lump sum super payout or are receiving ongoing payments from your super fund, you still have the right to rejoin the workforce. However, depending on your age, you may need to prove that your personal circumstances have changed, and that you are required to return to work.
You're free to retire from the workforce at any age, but if you want to access your super you must also have reached your preservation age. The preservation age for Australians born before 1 July 1960 is 55 years old, while anyone born on or after this date has a preservation age of between 56 and 60. You can check your preservation age from the table below.
| Date of birth | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960–30 June 1961 | 56 |
| 1 July 1961–30 June 1962 | 57 |
| 1 July 1962–30 June 1963 | 58 |
| 1 July 1963–30 June 1964 | 59 |
| From 1 July 1964 | 60 |
If you've reached your preservation age and want to retire and access your super, you need to declare your genuine intention to retire and never work again. Most super funds require you to sign a declaration when you retire, stating that you never again intend to be gainfully employed. gainfully employed is considered working for more than 10 hours a week.
However, if your retirement savings take a hit or you decide you miss the independence and social connectedness of working, you can return to work. You can also do this while still accessing your super. You might need to prove to the Australian Taxation Office (ATO) that your intention to retire was genuine and that you didn’t plan to return to work all along.
Turning 65 is a condition of release for superannuation, which means you can access your super regardless of if you're working or not. You only need to be retired if you want to access your super before you turn 65.
If you're over 65, retired and accessing your super you can decide to rejoin the workforce at any time, for any reason.
There's no limit to how much you can earn if you return to work after retirement.
However, once you return to work and earn more than $450 a month, your employer will be required to make superannuation contributions at the current rate of 11.50% into your super fund.
And, if you're over the age of 67 you will need to complete a work test requirement if you intend to make any voluntary contributions into your super fund. These are contributions you make yourself, not those that your employer is required to make for you. To pass the work test you need to prove you've been employed for more than 40 hours in a 30-day period during the year.
Once you reach age 75 you can still work however no super contributions can be made.
| Response | |
|---|---|
| Yes | 52.19% |
| No | 47.81% |
If, when you retired, you had the genuine intention of retiring permanently, your super fund would have been released, allowing you to begin a super pension (or take a lump sum payment). If your circumstances change and you return to work, this account-based pension can continue to be paid.
This is because the pension contains unrestricted, non-preserved super benefits, which can be accessed at any time as long as you satisfy the rules of the super fund and the pension itself. Ask your super fund, financial adviser or the ATO for information on your specific circumstances and how returning to work could affect your account-based pension.
It’s also important to be aware that there's a $1.6 million balance cap on pension income streams. If your pension balance remains under this cap, your pension remains tax free. But if you exceed the cap, penalty tax applies to the amount over the limit.
No, you will not be forced to stop working on your 60th birthday! You're entitled to keep working as long as you'd like, and once you turn 65 you're entitled to access your super benefits while still working. The preservation age is for those who wish to stop working, and access their superannuation.
The rules of superannuation in Australia when you retire can be quite detailed, but here's a simplified overview:
It's important to stay updated with the latest superannuation rules or seek advice from a financial advisor.
If you haven't yet reached your preservation age but you need to access your superannuation, there are situations when you can access it early. Read our guide to early release of superannuation for all the details.
For more information on entering the work force again after retirement, check out the Department of Education, Skills and Employment website, which provides more information around opportunities, skills upgrade and career transitions and more.
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My partner has retired and receives a super pension from a defined benefit scheme. He also has superannuation savings in accumulation phase. Is he able to withdraw part of this account and leave the balance still in accumulation as he does still do the odd bit of work where he gets a SGL payment?
Hi there,
Thanks for visiting Finder.
Generally, partial withdrawal from the accumulation account is possible, provided the rules of your fund also allow part withdrawal from your super. Additionally, transition to retirement (TTR) allows you to access a portion of your benefit each year by starting a super pension without retiring. Please refer to our article above which explains how this works.
Please note that withdrawing your super can have tax and Centrelink implications so make sure you get personal financial advice first.
Cheers,
Liezl
Hi I left Australia a few years ago as a permanent resident and claimed back my super,thinking I wouldn’t be back to work. But now I’m thinking of returning as on my returning resident visa and was wondering can I start working again and start a new super?
Hi Aaron123
Thanks for reaching out!
You will usually be allowed to return to work after retiring and accessing your super benefits.
However, at the time you retired and first accessed your super benefits, your intention to retire must have been genuine. According to the article above, you’ll need to prove to the Australian Taxation Office (ATO) or the Australian Prudential Regulation Authority that your intention to retire was genuine and that you didn’t plan to return to work all along.
Once you return to work and earn more than $450 a month, your employer will be required to make superannuation contributions at a rate of 9.5%.
Cheers,
Joanne
Hi, i am over 60 and thinking of retiring i will set up an income account or income stream from my super. If I should need to return to work, is this income stream converted back or rolled into what was my normal super account and am i still able to retire perm in the future and withdraw all my super at that time tax free
Thank you
Joan
Hi Joan,
Thank you for your inquiry.
Yes, you will usually be allowed to return to work after retiring and accessing your super benefits. However, at the time you retired and first accessed your super benefits, your intention to retire must have been genuine. This is why you’ll find that most super funds require you to sign a declaration when you retire, stating that you never again intend to be gainfully employed for more than 10 hours a week. You may want to learn more about how you can manage your money with a savings plan.
I hope this information has helped.
Cheers,
Harold