Building a comfortable retirement together takes more than just topping up your super each year. Couples who plan together and make the most of the rules can enjoy far greater financial security, and perhaps even a few more luxuries, down the track. Rather than simply aiming to even out your balances, it pays to look at the bigger picture and focus on what’s best for you as a team.
In this article, you’ll find a mix of tried-and-true strategies, from straightforward contribution tweaks to more involved approaches, all updated for the latest financial years.
1. Making the Most of Super Contributions
The heart of any good super plan is getting as much as you can into the tax-friendly super environment.
Concessional Contributions
These are the payments you or your employer make from before-tax income—think salary sacrifice or the Superannuation Guarantee. Super earnings are taxed at 15%, which is usually much lower than your normal income tax rate.
- Annual Cap: For both 2024–25 and 2025–26, you can contribute up to $30,000 in concessional contributions.
Carry-Forward Concessional Contributions
If you haven’t used up your concessional cap in the past five years, you can catch up and make larger contributions in one go. This is especially handy if you’ve had time out of work, received a windfall, or want to boost your super as retirement approaches.
- Eligibility: Your total super balance must be under $500,000 as at 30 June of the previous financial year.
- Time Limit: Unused cap amounts can be rolled forward for up to five years before they expire. The first year this rule applies from is 2018–19.
2. Helping Each Other: Splitting, Offsets, and Re-Contributions
These strategies are all about building up the partner with the smaller super balance — something that can make a real difference in the long run.
Contribution Splitting
This option lets you transfer up to 85% of your concessional contributions from the previous year to your spouse’s super account.
- Who’s Eligible? Your partner must be under their preservation age, or between preservation age and 65 and not yet retired.
- When to Apply: Generally, you apply in the financial year after the contributions were made.
Spouse Contribution Tax Offset
If your partner earns a low income, you can top up their super and get a tax offset in return.
- How Much? Contribute at least $3,000 and, if your spouse’s income is $37,000 or less, you can claim up to $540. There’s a partial offset if their income is up to $40,000.
- Other Rules: Your partner’s total super balance must be below the general transfer balance cap as at 30 June of the previous year, and they mustn’t have exceeded their non-concessional cap.
Cash-Out and Re-Contribution
If one of you has met a condition of release (such as turning 65 or retiring), you can withdraw a lump sum from super and re-contribute it to your partner’s account as a non-concessional contribution.
- Contribution Cap: The receiving partner can accept up to $120,000 per year, or up to $360,000 using the bring-forward rule, depending on their total super balance.
3. Stepping Up as Retirement Nears
Once you’re approaching retirement, there are a few more ways to make your super work harder.
Maximising Tax-Free Retirement Income
When you move your super into the retirement phase, investment earnings become tax-free.
- Transfer Balance Cap: From 1 July 2025, you can transfer up to $2.0 million into a tax-free retirement account. Each partner has their own cap, so together you could have up to $4.0 million earning tax-free income.
Making the Most of the Age Pension
If there’s an age gap between you, there’s a chance to boost your Age Pension by holding more super in the younger partner’s accumulation account, as it’s not counted in the Centrelink assets test until they reach pension age (currently 67).
- Asset Test Thresholds (from 20 March 2025):
- Full Pension: Assets below $470,000 (for homeowners).
- Part Pension: Assets up to $1,047,500 (for homeowners).
Downsizer Contribution
If you’re 55 or older and sell your long-term family home, you can give your super a healthy boost.
- How Much? Up to $300,000 per person ($600,000 for a couple) can be contributed, provided you’ve owned the home for at least 10 years and it’s been your main residence.
- Timing: The contribution must be made within 90 days of settlement.
- Extra Benefit: This doesn’t count towards your usual contribution caps and can be made even if your super balance is over the normal limits.
Transition to Retirement (TTR)
If you’ve reached your preservation age (currently 60), you can start drawing a regular income from your super—even if you’re still working.
- How Much? You can withdraw between 4% and 10% of your account balance each year. Once you turn 60, these payments are tax-free.
- Note: Investment earnings in a TTR account are taxed at 15%, just like in an accumulation account.
4. Putting It All Together
The real magic happens when you combine these strategies. Take James (58) and Chloe (55), for example:
- Building Balances: James, the higher earner, splits most of his concessional contributions with Chloe and makes spouse contributions, claiming the tax offset.
- Easing into Retirement: As James cuts back at work, he starts a TTR income stream, using the tax-free payments to top up their household income. He keeps salary sacrificing to super, lowering his taxable income.
- Downsizing: When they sell their family home, they each make a downsizer contribution, getting as close as possible to the $2.0 million transfer balance cap.
- Retirement Ready: With both balances built up, they can each move nearly $2.0 million into tax-free retirement phase accounts, setting themselves up for a comfortable future.
Don’t Forget Estate Planning
It’s easy to overlook, but keeping your superannuation nominations and wills up to date is vital. This ensures your savings go where you want them to and helps your loved ones when it matters most.
Final Thoughts
With a bit of teamwork and forward planning, couples can turn their super into a powerful tool for building wealth and enjoying retirement. Given the rules can be complex and the stakes high, have a chat with us for advice tailored to your situation.
