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Retiring doesn’t mean you have to stop working completely


More Australians are continuing to work past the traditional retirement age. Some do it to help their retirement savings last longer. Others choose to keep working to achieve a sense of purpose, for mental stimulation, or social benefits.

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Want to keep working?

If you choose to continue working in retirement, there are a few ways you can do this:

  • work in the same role but reduce your hours and top up your pay with a Transition to Retirement (TTR) strategy, while you keep growing your super
  • switch to a job that allows you to work when it suits your schedule
  • study or retrain to change the type of work you do
  • pursue a passion project that requires fewer working hours
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Explore your needs and passions

Before you decide which path to take for work in retirement, here are a few things to consider:

Financial needs and goals


  • How much super will you have when you retire?
  • Do you have any other income sources for financial support, like investments outside of super?
  • What type of lifestyle do you want to lead in retirement?
  • How long do you plan to work for?
     

Physical and mental health


  • What type of work can you engage in, even as you grow older and your physical health changes?
  • Can you continue in this work as you begin to experience the mental challenges of ageing?
     

Interest and passions


  • What have you always been interested in but didn’t have a chance to pursue during your career?
  • Are there any passions you can turn into income?
     

Flexibility and work-life balance


  • How much flexibility do you want to tailor your work around your social schedule?
  • What balance are you looking for between work and your personal life?
  • What support can you leverage if caring for your partner or someone whilst still not ready to fully retire?
     

Other factors to consider
 

Returning to work after you’ve retired can give you more autonomy and stability in retirement. But it also comes with flow-on effects to your Age Pension eligibility, super and income tax. That includes incentives for working in retirement, such as the government’s Work Bonus. This incentive reduces the amount of your eligible income included in the Age Pension income test.
 

Additional resources
 

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How you can plan for work in retirement

To confidently retire, while continuing or returning to work, plan and seek financial advice to do it in a way that’s right for you. Here are some steps you can take:

  1. Explore job opportunities or business ideas
    See what options are available to you.

  2. Evaluate your skills and experience
    Confirm whether they align with the work you want to do in retirement.

  3. Consider training or upskilling
    If your skills and experience don’t match the requirements, think about whether you’re willing to retrain.

  4. Develop a financial plan
    Seek professional financial advice to help you plan your finances to reflect this new source of income.
     
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FAQs

  • Can I continue to grow my super?

    Generally, you can continue to grow your super, even if you’ve already retired and started accessing your super, either as a lump sum or as a regular income.

    You can’t add any new money to your pension account, so you’ll need a super account for contributions to go into. If you previously transferred all your super into either a TTR or allocated pension, you’ll need to open a new super account. If you left some money in your original super account, that account will do fine.

  • How can I contribute to my super?

    Generally, you will still be entitled to receive compulsory super payments (SG) from your employer if you return to work – regardless of how old you are. You may also be able to make voluntary contributions, depending on your age.

    • Up until age 75 you can make voluntary contributions to your super account. If you’d like to claim a tax-deduction on these you’ll need to meet the 'work test'.
    • Once you turn 75, you can no longer make salary sacrifice or other voluntary contributions, but can continue to receive SG contributions from your employer.
    • If you’re under 65 you can continue to access your existing super, but any new money contributed to your account will be 'preserved' – meaning you’ll only be able to access it once you turn 65 or meet another condition of release.


Working in retirement checklist


Download our planning to work in retirement checklist to make sure you’ve considered the major impacts on your retirement income. You can also work through this checklist with a financial adviser.

Download the checklist

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Disclaimer: This content has been prepared on behalf of Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust (‘Mercer Super’) ABN 19 905 422 981. Any advice is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice, please consider the Product Disclosure Statement (including incorporated documents) and Financial Services Guide available at mercersuper.com.au. The product Target Market Determination can be found at mercersuper.com.au/tmd. The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate.

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* Any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information. Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.

Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.