What Happens to Your Super During Career Break

Expert super planning and smart strategies can help you maintain financial stability and navigate your career break with confidence and security.

Whether such life events planned or unplanned, there are many reasons why you’d take a break from your career. And while you’re taking time off to care for yourself, a loved one, or in pursuit of something different, a loss of regular income may impact what your retirement could look like, by affecting your super balance and long-term financial security.

And while you’re navigating your future of work, here are five super tips you can do to ensure that your super balance keeps working for you.

1. Combine your super

If you have more than one superannuation, you may be paying additional fees and missing out on potential additional tax savings. We can search for any extra accounts you may have and help you transfer them into your Prime Super account, saving you time and paperwork. Log in to MemberOnline or call us on 1800 675 839.

2. Spouse contributions

If your spouse or partner is still working, they can consider regularly adding a little bit to your super. This will help your super balance grow and they may also be able to claim a tax offset.

Contribution splitting is also available as part of a broader financial strategy – where your spouse or partner can transfer or roll over a portion of their contribution to your account, helping to boost your super balance and enhance long-term retirement goals. There are limits though, so check before you decide.

3. Plan ahead

If taking a career break is part of your financial planning in the future, you can plan ahead and make additional superannuation contributions now. You can do this through salary sacrifice or through a voluntary one off or regular after-tax contribution. Note that there are concessional contributions caps and any contribution in excess of those limits are included as taxable income and taxed at the marginal tax rate.

If you do pick up casual work during your break, earning under $60,400 per financial year, you could be eligible for a government co-contribution. Those who meet the eligibility criteria can receive up to $500 from the government, automatically paid into your super account once you’ve submitted your tax return.

4. Keep your account active with small contributions

You could also decide to continue making small, after-tax contributions while you’re on your career break. Any contribution to your super keeps your super account active, helping you grow your investment balance as it continues to be invested by your super fund.

If you have insurance with Prime Super, keeping your super account active by contributing even small amounts will ensure that your cover continues while you’re on your career break. If you don’t have a rollover or contribution into your account for 16 continuous months, you could lose your insurance cover and reinstating it may be difficult. To avoid this, it's crucial to stay on top of your superannuation to ensure your cover remains intact. 

5. Seek help from a super specialist

Book a 15 minute complimentary chat with a super specialist to learn how your super can continue to work for you as you’re on a career break. Our team is here to guide you when exploring smart strategies to keep your retirement savings on track.

This article is current at the date of publication and is subject to change. It contains general information only and does not take into account of your specific objectives, financial situation or needs or personal circumstances. You should seek personal advice or professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) before making a decision about Prime Super. For a PDS and Target Market Determination call 1800 675 839 or visit the primesuper.com.au/pds. Prime Super Pty Ltd ABN 81 067 241 016 AFSL 219723 RSE L0000277 is the (Trustee), of Prime Super ABN 60 562 335 823 RN 1000276.