Has your super balance taken a hit due to recent market fluctuations? While this might seem like a setback, it could actually open the door to opportunities that weren’t previously available. In fact, now might be the perfect time to reassess your retirement strategy and make the most of your super.
Let’s explore how a dip in your super balance could work in your favour.
🎯 1. You Might Now Qualify for the Age Pension
If you're aged 67 or over, a reduced super balance could mean you're now eligible for the Age Pension – or entitled to a higher payment if you're already receiving it.
Centrelink uses both an income and asset test to determine your eligibility, and super (along with account-based pensions) is counted as an asset. If your total assets now fall below the thresholds, you may receive a part or full pension.
📌 2024 Asset Thresholds for the Age Pension
| Your situation |
Full pension if assets less than |
Cut-off limit |
| Single homeowner |
$314,000 |
$697,000 |
| Single non-homeowner |
$566,000 |
$949,000 |
| Couple homeowner (combined) |
$470,000 |
$1,047,500 |
| Couple non-homeowner (combined) |
$722,000 |
$1,299,500 |
Example:
If you're a single pensioner whose assets reduce by $10,000, your Age Pension could increase by $780 per year (or $30 per fortnight). That’s
a 7.8% boost in income – potentially more than what your assets would have earned through investment.
💰 2. Greater Capacity for Non-Concessional Contributions
A drop in your super balance may also give you more room to make non-concessional contributions (NCCs) from 1 July 2025. These are after-tax contributions you voluntarily make to super – and how much you can contribute depends on your Total Super Balance (TSB) as at 30 June of the previous financial year.
If your TSB drops below certain thresholds, you could make a larger contribution under the bring-forward rule, which allows eligible individuals to contribute up to three years’ worth of NCCs in one go – ideal if you have a lump sum to invest (e.g. from an inheritance or asset sale).
📌 Bring-Forward NCC Thresholds
|
Thresholds and caps in 2025/26 (from 1 July 25) | |||
|
Maximum NCC cap | TSB at 30 June 2025 | Maximum NCC cap | |
| <$1.66m | $360,000 (3 years) | <$1.76m |
|
|
| $1.66 - <$1.78m | $240,000 (2 years) | $1.76m - <$1.88m | $240,000 (2 years) | |
| $1.78m - <$1.9m | $120,000 (1 year) | $1.88m - <$2m | $120,000 (1 year) | |
| $1.9m or more | Nil | $2m or more | Nil | |
With the TSB thresholds set to rise from 1 July 2025, now could be the perfect time to plan ahead.
🧓 3. Start a Pension Account During a Market Dip
Starting your first account-based pension
(ABP)
when markets are down can be a smart strategy, especially if you’re under the transfer balance cap – currently $1.9
million and increasing to $2 million from 1 July 2025.
Once you move funds into an ABP, the amount counts
towards your transfer balance cap. However, any future investment growth does not affect your cap. That means if the
market recovers while your money is in the pension phase, the gains stay in your account – and continue to be tax-free.
If you haven’t yet started a retirement-phase income stream, the upcoming cap increase means you’ll soon be able to transfer an extra
$100,000
into the tax-free pension phase.
🌱 Take Advantage of This Window
A lower super
balance may feel discouraging at first, but it can also create unique opportunities – from gaining Age Pension access to contributing more
into super or entering the pension phase at an ideal time. This might be the perfect moment to reshape your retirement strategy. With the
right guidance, today’s market dip could help secure a more comfortable and financially stable future.
