5th Apr 2016

Finance: your money milestones

FONT SIZE: A+ A-
person pushing a cart with dollar sign in
Debbie McTaggart

Managing your money doesn’t get any easier as you get older, but there are certain money milestones of which you can take advantage.

At 50 years of age

Once you reach 50, you will no doubt start to seriously focus on how your retirement savings are tracking. The super concessional contributions have changed, so be sure to don’t get stuck with a hefty tax bill by paying too much. The new limit is $25,000 as long as you were over 49 on 30 June 2015.

At 55 years of age



Those who have reached their preservation age (see table below for preservation age limits) within a super fund can start a transition to retirement pension by accessing the money in a super fund, while still contributing from their salary back into super. This enables people to keep working while taking advantage of preferential tax rates.

Date of birth

Preservation age

Before 1 July 1960

1 July 1960 - 30 June 1961               

1 July 1961 - 30 June 1962

1 July 1962 - 30 June 1963

1 July 1963 - 30 June 1964

After 30 June 1964

55

56

57

58

59

60


If you are 60 and work fewer than 20 hours per week, (this can vary in different states) then you are entitled to apply for a Seniors Card. A Seniors Card entitles the holder to discounts on local business and public transport and can also be used interstate for certain goods and services.
At 60 years of age
Tax rulings on Transition To Retirement (TTR) pensions can be complex, it's important to consult an independent financial advisor before applying to access your super fund.

At 65 years of age

You’re now eligible to apply for the Age Pension. With 70 per cent of Australians relying on either a full or part Age Pension to fund their retirement, this is indeed a major milestone. There are certain asset and income tests applied to the Age Pension, it’s not an automatic right once you reach 65. However, if you are granted an Age Pension, you will also be entitled to a Pensioner Concession Card, which can help with the cost of utilities, prescriptions, vehicle licensing and other day-to-day costs.

At 70 years of age

If you continue to work after 70, you may want to keep an eye on super contributions. Super funds can only accept employer or personal contributions, so you are no longer able to salary-sacrifice. You must also satisfy the work test which means you must work for at least 40 hours during a consecutive 30-day period each financial year.

At 75 years of age

You are generally unable to make super contributions after you reach 75 years of age. However, a fund can accept employer contributions if they are required to be paid under an industrial or award agreement.





COMMENTS

To make a comment, please register or login
Richied
12th Apr 2016
1:16pm
Sheesh - not well researched (or perhaps an old revamped article that hasn't been properly updated). According the to the ATO website (https://www.ato.gov.au/Rates/key-superannuation-rates-and-thresholds/?page=2) the super concessional contribution limit for those over 49 is $35,000, not $25k as per the article.
PIXAPD
8th Oct 2016
12:16pm
A person on single aged pension, and renting, can save up to $7800 a year, so not a problem.

24th Sep 2017
10:41pm
Great article! I would like to write more about it at https://roulette-en-ligne.ca/ So thank you for a nice source of the information!


Join YOURLifeChoices, it’s free

  • Receive our daily enewsletter
  • Enter competitions
  • Comment on articles

you might also be interested in...

The ten worst retirement planning mistakes

Paul Clitheroe reviews the ten biggest retirement planning mistakes – and why you need to avoid them.

Are you money smart?

Helping you highlight the areas which need urgent attention.

How safe is your super?

It may be worthwhile asking your super fund just how safe is your super.

Money milestones

Managing your money doesn’t get any easier as you get older, but there are certain money milestones of which you can take advantage.

What to ask a financial adviser

Starting on the right foot with a financial advisor can help ensure you get the most from your meeting. YourLifeChoices has 50 useful questions you may wish to ask.