For Australians planning to retire in late 2025–26, one of the biggest strategic questions may be:
Start pension now, or wait until after 1 July 2026?
Potential Benefit of Waiting:
Delaying commencement may:
- Secure full $2.1M Personal TBC
- Allow an extra $100,000 in tax-free retirement phase
- Improve future death benefit pension flexibility
Potential Cost:
Waiting may also mean:
- More money remains in accumulation phase temporarily
- Earnings continue to be taxed up to 15%
- Delayed pension tax exemptions
Real Case Study:
According to the Shaco comparison on pages 9–10:
- Immediate pension start produced short-term tax savings
- Delayed start may take almost seven years to financially outperform, depending on assumptions
Bottom Line:
This is not purely about cap size — it’s a tax timing trade-off.
Need Help Deciding When to Start Your Pension?
The decision to start a retirement-phase pension before or after 1 July 2026 could have long-term tax and estate planning implications. The right strategy will depend on your personal circumstances, super balance and retirement goals.
To discuss your situation and explore the most appropriate approach, contact us here for personalised advice.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.