Undecided..

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Property101, 20th Feb, 2020.

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  1. Property101

    Property101 Well-Known Member

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    Hello all

    I am wondering if anyone has retired from workforce...taken there superannuation then realized they would still like to work?

    How have you handled this situation?

    Thank you for any advice and sharing.
     
  2. See Change

    See Change Well-Known Member

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    I haven't , but have met many who have and many who should have .

    Reality is you need something to keep you mentally and physically active and going . Golf alone doesn't cut it .

    I'm working with someone at the moment in that situation . he works 2 days a weeks , gets him out of the house , gives him a sense of purpose and also pays for the daily bills so he can conserve his money or spend it on other things .

    Cliff
     
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  3. bashworth

    bashworth Well-Known Member

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    Find a charity that does something you are interested in.

    When I became semi retired at 60 I was rolling along working 4-5 hours a day four days a week

    At 63 I found a charity Disaster Aid Australia that was working to provide Safe Water after disasters in developing countries. and volunteered on my day off.

    After a year I gave up the part time job to spend more time working for the charity 3 days a week.

    I was volunteered to be CEO last year and probably spend 25-30 hours a week on it.

    No pay, but I have travelled to some amazing places , met lots of inspiring people, and had the joy of helping people in real need.
     
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  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Retirement is a (there are others) condition of release provided you are over your preservation age which varies by date of birth. You can return to work the next week and its not a concern unless its a scheme and you didnt actually retire. Many people stop work full time and almost immediately plan a PT / Casual job. Even sometimes with the same employer !!

    The impact of the worktest needs to be considered too. The new job may not allow contributions etc.
     
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  5. ellejay

    ellejay Well-Known Member

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    My husband looked into this a while back as his ex-employer wanted him to go back and help out with an issue. It was very straightforward.
     
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  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    There is a condition of release test required to be met at the time of retirement if you are aged between 55 and not yet 60. Your super fund will generally require you to sign a form stating that you don’t ever intend to be gainfully employed in the future for more than 10 hours per week. 10 hours per week is also the minimum requirement for work to be classified as part-time. This formailty needs to be met by a SMSF too. The ATO have access to the data to indicate both access to super and consequential contributions and their sources. So the requirement needs to be substantiated. Failure to do this could mean a determination of illegal access to benefits which is harshly penalised through taxes.

    If a SMSF or any other APRA regulated fund is involved it important this same test can be met. However there is nothing limiting a person returning to work after that time. This test obviously is intended to address those who may nudge nudge wink wink "retire" Friday and commence work on the following week with the same employer even on different terms. (Note the 10hour maximum test)

    If a person resigns from employer A on Friday and restarts work Monday with employer B they wont meet this test. They may be unemployed for the weekend but not retired in the true sense of that word defined in the legislation.
     
  7. Property101

    Property101 Well-Known Member

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    Thank You very much Paul for your valued contribution.

    And thank you all for sharing your knowledge ...also very much appreciated.

    It's a very hard decision to make approaching early retirement...for me it's not about being able to fill my days... But I still have a bit of life in me and feel I have something to offer in the right situation.
     
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Anyone over age 55 should consider financial advice re super when things change. Even the very issue of advising your fund that you stopped working and retired and yet you later re-start work can mean the fund can reclassify your super as "non-preserved" in that period of time and you dont have to take a cent out. If you dont tell them it can be missed as you may then be looking for work.
     
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  9. DoggaPP

    DoggaPP Well-Known Member

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    Additionally if you do find yourself returning to work after going into pension mode on your super, the new contributions will be preserved until a new condition of release is signed or you hit aged pension.