December 03, 2023

Luke on 2CC – Can I work in retirement? How much tax will I pay?

19 minutes

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired on Friday 1 December 2023. This week’s show considers: Can I work in retirement? If I work what tax will I pay? Let’s explore this question for pre-retirees and retirees, as many people look to continue work, even though they might have already started a pension income from their super.

Key topics covered include:

People go back to work for a variety of reasons and yes you can work in retirement.

A good place to start is thinking about tax is thinking about where you’re income is coming from in retirement

If you’re over 60 and started a pension, that money is tax free

If you’re earning income from work as well, you’ll enjoy the tax-free threshold for the first $18,200 you earn, and only pay tax on work earnings above that.

Think about sources of other income too – do you have rent from an investment property or dividends from shares outside of super?

Worrying about the tax might actually diminish the other benefits from working

What if I have a defined benefit pension? Is that taxable?

Can you mitigate tax? You can get tax deductions including tax deductible contributions to super!

Get some advice from your accountant too – you might also be eligible for the seniors tax offset too

What about family trusts and tax? Thinking about the vehicles in which how you hold assets can also make a tax difference

Luke shares his top tips around working in retirement

Remember, seek advice if you need help to plan your retirement, including working in retirement.

https://www.envisionfinancial.com.au/wp-content/uploads/2023/12/The-Strategy-Stacker-Luke-Talks-Money-01122023.mp3

Also available on Apple Podcasts and Spotify – ‘The Strategy Stacker – Luke Talks Money’

Are you thinking about work in retirement as part of your plan?

Don’t let tax stop you from enjoying the benefits of working in retirement. You might be surprised just how little tax you can pay if you’re over 60 and are drawing an income from your super. Seek financial planning advice to help with your own retirement planning.

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement. Make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us form to make an appointment, for a confidential discussion about your situation. Luke can also refer you to an accountant or mortgage broker.

Luke will return to 2CC to talk about other ‘Money Matters’ next week. You can also catch up with ‘The Strategy Stacker – Luke Talks Money’ podcast at a time that suits you.

We look forward to your company again and Luke’s book Smart Money Strategy is out now.

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By Luke Smith