24th Jun 2015
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Super guarantee after 65
Super guarantee after 65

Pauline plans to work after reaching 65 but has heard that she may no longer be entitled to superannuation contributions from her employer. Is this the case?

Q. Pauline

I have been told that a company is not obliged to pay super to staff aged 65 and over. As I will be 65 next April, does that mean that even if I continue to work after that time that I will no longer receive any super from my employer? I would very much appreciate you being able to clarify this situation as it will probably impact my decision on whether to continue working or not.

A. An employer is obliged to pay guaranteed superannuation contributions for employees up until they turn 70 years of age.

However, you may wish to check if you are covered by Work Cover, as this often ceases to apply to those who are injured at work after reaching retirement age.





    COMMENTS

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    Ted
    29th Jun 2015
    10:01am
    This is a clear cut case of infrastructure not keeping pace with the governments demands. Surely if the government wants people to work into their 70's now then the infrastructure changes need to occur now. Perhaps as well as looking after older people's retirement and care needs someone needs to be looking at those who will not retire and will continue to work on well into their 70's and I suspect for my age bracket it will be beyond the 70's. COTA and LASA and other peak bodies need to be looking into this now not in 20 years time.
    Adrianus
    29th Jun 2015
    10:12am
    Pauline, my understanding is, if you work at least 40 hours in any 30 day period then you can make contributions yourself.
    Golden Oldie
    29th Jun 2015
    12:04pm
    This means that you will effectively be taking a pay cut, as the employer will not be contributing to your superannuation, which is part of the value of your salary package.
    also, you are not covered under workers compensation, so expect to lose your job if you are injured (costs will not be available from workcover), and I believe that life insurance and loss of income insurance may also not be available. Makes working after reaching 65 not very attractive. Also you are not eligible for the disability scheme brought in by the Labour government.
    Jim downunder
    29th Jun 2015
    12:13pm
    I am now 72. My [NSW] employer stopped contributing super [and paid myself the equivalent] when I turned 70 [March 2013], only to reverse the procedure sixteen weeks later [in the new financial year].

    29th Jun 2015
    4:37pm
    This provision for those from 65 to 70 is VERY hard to find in any Centrelink publication, but it is there. A lot of people who were of this age and didn't work but had money they wanted to put into super as supplementary contributions got work for that purpose only. With the way super rules are to change on 1/1/2017 I, for one, would think two or three times before putting money into super if I could with assets and taper rates to change in the next 18 months, particularly if they would adversely affect one's Age Pension because of the assets test. With the RBA having blown term deposit interest rates (whether in the bank or super fund) out of the water it might to a good idea to "sleep on" what you want to do with any extra cash until such time the economy improves - IF we live that long, that is! Good luck.
    Snow
    6th Jul 2015
    10:41pm
    If we have to work until 67 and higher why are we not covered by workcover. The govt seem to want their cake & eat it too. Does not really add up.


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