Working Part-Time After 60: Impact on Super and the Pension
More people are choosing to keep working in some capacity well past 60, whether for financial reasons, social connection, or simply not being ready to stop. It's worth understanding how this interacts with both your super and any Age Pension you might be receiving.
Access to your super while still working
Reaching preservation age (60 for anyone born after 30 June 1964 — see Preservation Age by Birth Year) doesn't require you to stop working to access some super — a transition to retirement income stream allows this, as covered in Transition to Retirement (TTR). Once you turn 65, you can generally access your super fully regardless of whether you're still working, without needing to meet a retirement condition of release at all.
Continuing to contribute while working
If you're still earning income, you can generally keep making super contributions, including receiving compulsory Super Guarantee contributions from an employer, and making voluntary contributions subject to the usual contribution caps — see Contribution Caps Explained. Certain voluntary contribution types can require meeting a work test (a minimum amount of gainful employment in the financial year) once you're past a certain age — see Contribution Caps After 60 for specifics.
Impact on the Age Pension
If you're receiving or considering the Age Pension, employment income is assessed under the income test alongside deemed income from your financial assets — see Superannuation and the Age Pension for how the assets and income tests work generally. A "work bonus" style concession may apply to reduce how much employment income counts against the pension income test, which can make part-time work more financially worthwhile than it initially appears — worth checking the current rules with Services Australia.
How part-time work later in life can fit into a transition to retirement
For some people, working part-time in the years around preservation age (potentially combined with a TTR income stream) can smooth the transition into full retirement, reduce reliance on drawing down super early, and allow continued contributions during a period when the balance still has years to grow — as an alternative to an all-or-nothing switch from full-time work to full retirement. Whether this approach suits your circumstances depends on factors like your cash flow needs, health, and career preferences, so it's worth weighing up against a full retirement or continuing full-time work, ideally with input from a licensed financial adviser.
Frequently asked questions
Do I have to stop working to access my super at all?
No — once you reach preservation age you can access some super via a transition to retirement pension while still working, and from age 65 you can access your super fully regardless of employment status.
Does working part-time reduce my Age Pension dollar-for-dollar?
Not necessarily — work bonus-style concessions can reduce how much employment income counts against the income test, so it's worth checking the current rules rather than assuming a full offset against your pension.
Can I keep making super contributions indefinitely as I get older?
Generally yes while you have eligible earnings, though a work test can apply to certain voluntary contribution types after a certain age — see Contribution Caps After 60.
Work test rules, contribution rules and Age Pension income test treatment of employment income can change — confirm current details on ato.gov.au and servicesaustralia.gov.au before publishing.
This article contains general advice only. It has been prepared without taking into account your personal objectives, financial situation or needs, and does not constitute a recommendation to acquire, hold, or dispose of any financial product. Before acting on this information, consider its appropriateness to your own circumstances, and seek independent financial, tax and/or legal advice, or speak with a licensed financial adviser, before making any decision.
