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Date of article: 22 February 2008
Last updated: N/A

Super tips – are you over age 55 and still working?

Did you know that investment earnings, including capital gains, from pension account is tax-free?

If you are over the age of 55 and still working, either full-time or part-time, you can implement a strategy to save on the tax you pay. You can do this and still maintain the same standard of living, i.e. take home the same amount.

Salary- sacrifice part of your salary into your superannuation fund and at the same time draw an income from your pension account to supplement your income.


  • Investment earnings from the capital supporting the pension are tax-free.
  • Salary-sacrificed contributions to superannuation fund are tax at 15% whereas your marginal tax rate may be higher.
  • Between the age of 55 and 59, depending on your personal circumstances, the drawn pension income provides you with a tax offset and/or a tax free amount.
  • From the age of 60, the pension income you receive is completely tax-free.

The type of pension is known as Transition to Retirement Pension. Superannuation Accounting Services is able to draft the appropriate documentation for your self managed superannuation fund.

More about commencing a pension or a transitiont to retirement pension.