Can you keep working?

Some of us can't wait to get out of the rat-race - others want to ease out gradually to keep the benefits of working a little longer. It comes down to what we want in retirement - and what we can afford. Many financial planners believe an extra two years work can fund a full six years of retirement.
Work longer, save more, play later?

Ease out gradually
Many people are reluctant to lose the stimulation and friendships of their working life - not to mention the income. If you define yourself by your work, you may lose direction if you stop work overnight. This is why many people opt to ease out gradually by working part time, running a business or volunteering.
  
Save more
You will spend a long time retired. Today's long life expectancies mean many of us will have 30 or more years in retirement. Working longer means you have more super savings to fund your retirement.

More opportunities for work
As the baby boomer generation moves into their senior years, Australia faces an ageing population and a decrease in the number of the younger workers available.
Man on path
Incentives to keep working
The Pension Bonus Scheme is a voluntary scheme that rewards people who defer claiming the government Age pension. You could receive a bonus of up to $30,000 if you work for 5 years after retirement age.
You still have a lot to offer
Many older Australians have skills from years of experience but because employers often favour younger workers, they hit the so-called 'grey ceiling'. But attitudes may change in older worker's favour when the population demographic shifts.
  
Consider your super cut off
Once you turn 70 employer contributions to super cannot generally be made . If self-employed, you lose tax deductions for super contributions at age 75. You can continue to contribute voluntarily to your super until you are 75 from your pre-tax dollars.
On reaching preservation age

You can stay in your super as long as you like. You only ever need to draw on your super when you are ready to.

When you can access your super and do wish to draw on it, you will have the option of drawing a lump sum, converting to a pension (income stream) or a combination of both.

Even if you are not retired, you are able to transfer some, or all, of your super into certain types of income streams on reaching your preservation age. You may be able to supplement your reduced employment income by beginning to draw down on your super.

See: Retirement Income Choices

Find out more about the preservation age in When can you retire?

Find out more about retirement
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's pension plans.