How to maximise the pension, super and work as you hit retirement age
In some circumstances, superannuation, the pension and working past retirement age can combine for the best outcome, writes Craig Sankey.
Question 1
I am a married woman, 66 years old and still working full time.
I have approximately $400,000 in super and am weighing up my options as to whether I retire after I turn 67 in May, or whether I should continue to work – either full time or part time.
My partner is retired (sick) and has no income or super. We rent a house for $500 a week. What are my options, financially?
If you don’t have much outside of your super, then you would be entitled to the full age pension once you turn 67, based on your level of assets.
The full age pension is $905 a fortnight for each member of a couple (as at May 2026).
If you are still working past age pension age, then you may become income tested, depending on your wages. However, it often makes sense to keep working, if you can because it means your income is higher and more money is then contributed to your super.
You can receive income up to $380 a fortnight for couples (combined). Income up to this amount has no effect on the rate of age pension payments. In addition, the government encourages older Australians to continuing working under the ‘Work Bonus’.
With the Work Bonus, the first $300 of employment income (and eligible self-employment income) is not counted from the pension income test each fortnight.
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Therefore, you can receive up to $680 a fortnight without it having any effect on your age pension (so long as at least $300 is from work). Every $1 above this, you and your partner would lose $0.25 each a fortnight.
If you can continue to work at least part time, this could give you a big income boost.
You should also be eligible for rent assistance as well, up to $206 per fortnight.
Question 2
My wife and I have sold our house and we are looking to take advantage of downsizer contributions of $300,000 and the bring-forward rule for non-concessional contributions of $360,000 each.
My concern is that my wife is 74 and I am 73. I am aware that no further voluntary super contributions can be made after age 75.
Because we are still under the age of 75, can we take advantage of both the downsizer and the bring-forward rule even though the three years will take us over the 75 years of age?
Good news for you.
Downsizer super contributions can be made from age 55 onwards, there is no maximum age.
There are obviously other requirements, such as owning the home for at least 10 years, with it being your main resistance for at least part of that period.
The contribution to super must be made within 90 days of settlement.
For non-concessional (after tax) contributions, there are a few more rules. As you pointed out, you cannot make these contributions after age 75. (Technically, you can make the contribution up to 28 days after the end of the month you turned 75. So if you turned 75 in September, you have until October 28).
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The annual non-concessional cap is $120,000. However, you can use the bring forward rule and make up to three years contribution in one go, i.e. $360,000.
And yes, you can still do this even if you are 74 and have no “bring” forward amount to use. Therefore, you and your wife could both make contributions of $660,000 each when you combine the downsizer and non-concessional rules. So long as you have the money!
A couple of things to note. First, the non-concessional cap is going to $130,000 for 2026/27. Under the bring forward, this is then $390,000 (the downsizer cap stays at $300,000).
Finally, to make non-concessional contributions and to use the bring forward rule, your total super balance must be within certain limits as at the previous June 30. These are shown below for the 2025-26 and 2026-27 financial years:
Question 3
My wife and I live together and we own our house. She gets a $653-plus fortnightly super payment. She also receives a $540 fortnightly Centrelink payment.
I receive a $141 fortnightly super payment and a $562-plus Centrelink payment. Why do I receive such a small Centrelink payment?
Centrelink treat couples as one family unit and they are assessed together, regardless of whose name assets are in or who receives the income.
All assets and income from a couple are added together, then an asset and income test applied. The test that provides the lower payment is then applied.
Therefore, as members of a couple, you should both be receiving the same payment (assuming you are both age pension age and otherwise qualify).
I suggest contacting Services Australia direct to review your situation.
Craig Sankey is a licensed financial adviser and head of Technical Services and Advice Enablement at Industry Fund Services.
Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.
Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.
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