While much attention is focused on maximising the new $2.1 million cap, a more practical question may be:
Will you realistically ever use it?
For Some People:
The extra cap may matter greatly if:
- Super balances are near or above $2M
- A spouse’s death benefit pension may be received
- Additional retirement income streams are planned
- Estate planning flexibility matters
For Others:
If super balances are well below current caps and future growth is unlikely to exceed thresholds, immediate pension tax savings may outweigh waiting.
Practical Insight:
A retiree with $1M and no spouse may gain more from immediate tax-free earnings than from delaying for unused cap space.
Bottom Line:
Maximising cap isn’t always the same as maximising outcomes.
Not Sure Whether Waiting for the Higher Transfer Balance Cap Makes Sense for You?
The right retirement strategy is not always about maximising the cap — it’s about maximising long-term outcomes based on your personal circumstances, tax position and retirement goals.
Visit our Contact Us page to arrange a personalised consultation with our team.
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.