Your home is likely to be one of your most valuable assets, and while moving on can be a lot of work, there can be opportunities to grow your super.
selling the family home
Downsizer super contributions
Selling our home often means taking the next step on the property ladder. But it can also be a chance to downsize rather than upsize.
If you are aged 55-plus, and meet various eligibility requirements such as having lived in your current home for at least 10 years, by selling up and scaling down to something more manageable, you may be able to use the proceeds from the sale of your home to make a downsizer super contribution.
The downsizer super contribution is limited to $300,000. But if you own your place as part of a couple, you could each make a $300,000 non-concessional (after-tax) contribution, meaning you could boost your combined super savings by up to $600,000. This amount will not count towards your non-concessional (after-tax) contributions cap but will count towards your transfer balance cap (this cap applies when you move your super into the retirement phase).
Of course, before making important decisions about your super or retirement planning, seeking professional advice is recommended. It can be worth speaking to an Active Super financial adviser* before making a downsizer contribution as it could impact your ability to claim the age pension.
* Please note that when you first speak with a planner they will discuss and assess your needs. If a fee is payable for the advice you require, you will be advised of the associated cost.
You don’t have to downsize to grow your super
You can still choose to make a non-concessional (after-tax) contribution to super using money from any profit on the sale of your home. Non-concessional contributions can be made at any time or with any frequency until you reach age 75. Learn more about downsizing contributions into super. Again, this is an area where it can be worth seeking expert financial advice.
Let Active Super know your new address
If you do move, be sure to let Active Super know your new address. There is a $16 billion1 pool of unclaimed super in Australia, and one of the chief reasons people lose touch with their super is because they don’t keep their super fund informed when they move. And no matter where you’re heading, it’s important to stay connected with your super at every life stage.