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Returning to work after retirement

returning to work

Regardless of the careful planning you dedicate to your retirement, individuals who leave the workforce to retire and access their super may decide they want or need to return to work.

Understanding how the choice to exit retirement can impact upon your superannuation is futile; disregarding the potential risks involved with returning to work after accessing super can see you land in murky water.

It is regulatory for members of many super funds to sign a mandatory declaration upon retirement before being eligible to access any super.  The declaration states that the individual genuinely has no intention of returning to the workforce.  Specifics of the declaration will vary depending on age, conditions of retirement, and many more.  However, circumstances change and while at the time of signing the declaration an individual may have had no intention to work again, they may have no alternative.

You are eligible to return to the workforce after accessing super without raising any flags if it is for no more than ten hours a week.  This type of work is ideal for people who find retirement unfulfilling or boring and want the social benefits of being involved in a workplace, but where being employed is not a financial necessity.  If an individual decides to return to part-time employment (10-30 hours per week) or full-time employment, they will need to ensure they are not breaching any regulations pertaining to super.

If you wish to return to work for any more than ten hours a week, you will need to satisfy the Australian Taxation Office and possibly the Australian Prudential Regulation Authority (depending on the type of super fund you have) that you acted honestly and in good faith when stating you would not return to the workforce at the time of accessing your super.