Hi Michael, I recently came into some money and wanted to place this into Super but I retired a few years ago, so can I still add to Super? Jane, Mona Vale

Thank you for your question, Jane. If you’ve recently come into some money and wish to contribute to your superannuation, being retired doesn’t necessarily prevent you from doing so.

The ability to contribute to your superannuation after retirement depends on various factors, including your age and your superannuation balance.

Individuals are generally allowed to contribute to their superannuation if you’re under 75 at any time during the financial year you wish to contribute.

It’s important to consider the contribution caps set by the Australian Taxation Office (ATO) when making contributions to your superannuation and the timing of these contributions. This applies especially if you are turning 75 during the financial year you wish to contribute.

Exceeding these caps may result in additional taxes and penalties. The annual non-concessional contributions cap is $110,000 and this cap may vary depending on your circumstances and any contributions you’ve made in previous years.

Furthermore, retirees should also be aware of the total superannuation balance (TSB) threshold, which affects the ability to make non-concessional contributions. If your TSB exceeds a certain limit (currently $1.9 million), you may be restricted in making further non-concessional contributions to your superannuation.

One option available to retirees is the ‘bring-forward rule’. This rule allows individuals under the age of 75 at any time in a financial year to bring forward up to three years’ worth of non-concessional (after-tax) contributions into their superannuation in a single financial year.

This means that even if you’re retired, you can make substantial contributions to your superannuation within this timeframe, provided you meet the eligibility criteria.

Before making any contributions, it’s advisable to seek advice from a qualified financial advisor or tax professional who can provide personalised guidance based on your individual financial situation and retirement goals.

They can help you understand the contribution rules, assess your eligibility and develop a strategy that aligns with your retirement plans while maximising the benefits of your superannuation fund.

It’s important to be aware of the rules and limits associated with each of these contribution types. These rules may change over time, so it’s a good idea to stay informed about the latest contributions.

Any questions, please speak with your financial adviser, or call me to discuss on 8376 0350.

Regards, Michael

Michael de Bomford and Up Wealth Sydney Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd, AFSL number 230323, an Australian Financial Services Licensee.

This is general information only, as in preparing it we did not take into account your personal objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your personal circumstances. Although the information is considered reliable, we do not guarantee that it is accurate or complete and you should not rely upon it. Please seek financial advice specific to your situation before making any financial, investment or insurance decision.