Are you ready to retire? If your answer is no, there are opportunities for seniors to keep working after retirement.
Retirement is a condition of release to be able to access your super or retirement savings as you reach preservation age. But it would be possible to return to work even if your intention is to be officially retired at first.
There will be changes in the way your contributions to your super account are done, in your retirement planning, or in your income test, but you may adjust accordingly.
Why do Australians return to work after retirement?
Retirement could help reap the benefits you accumulated while working. Although you could completely relax as you sign a declaration of retirement. But more senior Australians would want to work even for part-time jobs. Here are the top reasons and other information for their decisions.
1. Financial stability through employment income
You may receive enough pension to cover the basic cost of your retirement. But given the inflation rate and rising health care costs, consider how to cover the extra expenses.
It makes sense that people are returning to work after enjoying their super fund pension to help keep savings and pension benefits while having access to extra income.
2. Enjoy personal benefits
Aside from steady access to income, employment makes you active. Tasks stimulate your mind and body, which helps maintain your overall wellness.
3. Try a new career
This is the perfect time to realize your other career goals and earn income from them.
What is a good job for a retired person?
For most people in Australia, there are numerous job opportunities for retirees. Here are the top career ideas you can try even after gaining full access to your super balance.
With your acquired skill set, accessing your super and working as a consultant is possible. You can also look into your hobbies and other interests if there are available freelance jobs.
- Personal coach or mentor
Have you accessed your super but also want to share your expertise? Whether it’s for professional or personal development, your previous experiences can be useful to others too.
It’s your chance to write a book you have always planned about.
- Work for a nonprofit organization
Volunteer for events or work on administrative tasks, depending on your skills and experience.
- Tax preparer
Do you know how to review an income test? You can offer your services to those who may need assistance in dealing with it.
- Business owner
After you have reached your preservation age, you can now start your own business and gain additional income.
Can I draw my pension and still work?
Even after retirement, you’re still allowed to rejoin the workforce while enjoying your pension. However, there are some superannuation and legal information along with tax rules you have to understand first.
- Workable number of hours in a week after retirement
If you retire at the preservation age of under 60, you can only make up to 10 hours per week at most, or at least 40 hours a month.
- Information on after-retirement contributions
Super contributions made after your first employment arrangement will be inaccessible until you meet another condition of release.
- Information on work test declaration requirement
This declaration is required for each financial year after making personal payments to your super account after reaching 67 years old.
- Payout arrangement for your super fund
Under the superannuation regulations, your super fund payout may be in the form of a lump sum or income stream. But you need to prove that your initial intention to retire must have been genuine at the time, but your circumstances have changed, which requires you to work.
- Rules on Age Pension and other financial benefits
Retired seniors can also receive Age Pension while working part-time or full-time. The rules provide incentives for casual work part-time or full-time through the combination of account-based pension income test and the Work Bonus.
What about you?
More Australian seniors make another kind of retirement lifestyle. Rather than relax before or after age 60, some choose to return as part of the workforce.
If you’re one of them, then look for a full or part-time job. Doing so will not only improve your financial situation but also have benefits on your personal circumstances. Keep the career and working spirit burning!
Do you have other information for seniors who want to go back to work and be gainfully employed after retirement? Share it with us at Aged Care Weekly through comments.