Topping up your Super before it's too late

Superannuation is an essential part of preparing for retirement, and understanding the contribution rules as you age is key to maximising your retirement savings. As you approach age 75, some of the flexibility around making contributions changes, which means it’s important to plan ahead and make the most of your opportunities. Here’s a clear look at the age-based contribution rules and what you can consider doing as you get closer to that milestone birthday.

Contribution Rules Under Age 67

If you're under 67, you can contribute to your superannuation without needing to meet any special conditions. You have full freedom to make both concessional (before-tax) and non-concessional (after-tax) contributions, whether they're voluntary or part of an employer arrangement. This is the period where you can really ramp up your contributions and take advantage of tax benefits and compound growth.

But as you get older, the rules change. By the time you reach 67, there's an extra hoop to jump through: the Work Test.

Ages 67 to 74: The Work Test Kicks In

Once you hit 67, things get a little more structured. You can still make voluntary contributions to your super, but you’ll need to meet the Work Test. This requires you to work at least 40 hours over a consecutive 30-day period in the financial year in which you plan to contribute. This ensures that the super system continues to benefit people actively earning an income.

However, there’s some leeway if you’ve just retired. Enter the Work Test Exemption: if you’ve recently stopped working and have less than $300,000 in super, you can still make voluntary contributions for up to one year after your last day of work. It’s like a little buffer to give you time to top up your nest egg as you wind down your career.

Employer Contributions: If you're still working, your employer must continue making Superannuation Guarantee (SG) contributions, even after 67. You don’t have to meet the work test for these compulsory payments, making it easier to keep building your super while you work.

Age 75 and Over: The Cut-Off for Voluntary Contributions

Turning 75 brings a significant change in how you can contribute to your super. After your 75th birthday, most voluntary contributions are off the table. You can no longer make concessional or non-concessional contributions, except for a few special cases (which we’ll touch on below).

However, there is a grace period: you can make voluntary contributions until the 28th day of the month following your 75th birthday. After that, only compulsory contributions (like employer SG payments) are allowed. This means any last-minute boosts to your super need to happen before that cut-off.

The Downsizer Contribution: A Special Case

For those aged 55 and over, there’s one more unique way to contribute to your super: the Downsizer Contribution. If you sell your primary residence and meet the eligibility criteria, you can contribute up to $300,000 (or $600,000 per couple) to your super from the sale proceeds. The best part? You don’t need to meet the work test, and this contribution is not subject to the usual age restrictions or contribution caps.

This can be a game-changer for retirees looking to free up cash from their home while still boosting their super balance.

What Can You Do as You Approach Age 75?

As you near your 75th birthday, there are a few strategic steps you should consider seeking advice on to maximise your super savings:

1. Plan Early: Don’t wait until the last minute. Start reviewing your financial situation as you approach age 74. You still have flexibility, so consider making extra contributions while you can, especially if you’ve got unused concessional or non-concessional contribution caps from previous years.
   
   

2. Use the Bring-Forward Rule: If you’re under 75 and have a large sum to contribute, the bring-forward rule allows you to make up to three years’ worth of non-concessional contributions in one go. This could allow you to contribute up to $330,000 in a single financial year before your 75th birthday, giving your super a significant boost.
   
   

3. Review Your Work Status: If you're still working, check whether you meet the work test or work test exemption rules. This is your last chance to make voluntary contributions after age 67, so make sure you tick that box if you want to continue contributing.
   
   

4. Consider Downsizing: If your home is larger than you need or you're thinking about selling, the downsizer contribution is a smart option. It lets you move money from your property into super without many of the usual restrictions. It’s tax-free and won’t affect your contribution caps, which can make a big difference to your retirement lifestyle.
   
   

5. Talk to a Financial Adviser: The rules around superannuation contributions can get complicated, especially as you reach the later stages of working life. A financial adviser can help you navigate your options, ensure you’re complying with all the requirements, and identify opportunities to maximise your super contributions.

   
   
   

Final Thoughts

Reaching age 75 doesn’t mean the end of your ability to grow your superannuation, but it does mean you need to be more strategic about how you manage contributions. The earlier you start planning, the more opportunities you’ll have to take advantage of the work test exemptions, bring-forward rules, and special contributions like the downsizer provision. By understanding the rules and getting ahead of the cut-off dates, you can enter retirement with the peace of mind that you’ve done everything possible to secure your financial future.