Superannuation Discussion + market volatility

[SYD]

No longer working for $$$

That’s a pretty narrow definition in the context of contributing to super.

You can stop “working for $$$” below preservation age and still be actively managing your finances (ie continue to top up super). “Self funded retirees” can live off other income before super kicks in.

Sadly, And therein lies a major reason why people can't imagine selling buying and moving which is never an easy process.

That’s part of the logic to treat “downsizing” differently - make it more attractive to sell.

You actually don’t need to “downsize” at all - just sell the existing home (and meet the age and timing conditions). You can actually buy something bigger and more expensive…

But doing something about State “stamp duty” would help people turnover property sooner and not have older folks stuck in unsuitable houses (ie steps etc).

 

[andye]

No longer working for $$$

However the ATO defines it differently:- essentially stopping work with no intention of working more than 10 hours a week

 

[Pushka]

However the ATO defines it differently:- essentially stopping work with no intention of working more than 10 hours a week

At the moment you make the decision to retire. I retired December 2019. Look what happened in Feb 2020. Share market tanked. I went back to work.

 

[SYD]

At the moment you make the decision to retire. I retired December 2019. Look what happened in Feb 2020. Share market tanked. I went back to work.

I was “restructured” in July 2019 (after 20+ years) but not far off my plan to “retire” anyway (But still 5 years before preservation age).

My cunning plan to do nothing but travel was short lived after being asked to do some consulting work in late 2019 - I didn’t need the money but as it turned out, it keep me from going stir crazy during Covid!

I took the market crash as an opportunity to switch to High Growth options in my super!

 

[burmans]

Define fully retired?

I’m sure 99.9% of “Self funded retirees” would probably disagree that you can’t contribute to super if no longer in the workforce.

Absolutely you can continue to contribute after retirement but more difficult once you hit 67.

 

[Quickstatus]

Absolutely you can continue to contribute after retirement but more difficult once you hit 67.

Sure, but once no longer working there is no SG, salary sacrifice.

 

[SYD]

Sure, but once no longer working there is no SG, salary sacrifice.

But you still have access to the same concessional cap that SGL and SS use. It’s just your own after tax dollars for which you can claim a tax deduction.

If you haven’t reached your total super contributions cap, you can also toss in large chunks of dollars each year as non-concessional contributions.