RETIREMENT PLANNING | EPG WEALTH
If retirement is 5–15 years away, the decisions you make now can be worth hundreds of thousands of dollars. Here’s where to focus.
The years immediately before retirement are the most financially impactful of your life. Your super balance is near its peak, your income is typically at its highest, and the contribution strategies available to you are more powerful than at any earlier stage. Yet most Australians in this window are still running on autopilot.
Here are the key levers worth reviewing — and why acting now matters.
1. Max Out Your Contributions — Especially If You’ve Fallen Behind
Concessional (before-tax) contributions are taxed at just 15% inside super — compared to up to 47% at your marginal rate. The annual cap is $30,000 in 2025–26 (rising to $32,500 from July 2026), which includes your employer’s Super Guarantee contributions.
If you haven’t maximised contributions in previous years and your total super balance is under $500,000, you may be able to carry forward unused cap space from the past five years and make a larger concessional contribution in a single year. This is one of the most underused strategies in Australian super.
| Example: catch-up contributions in action
James, 52, has a super balance of $320,000 and unused cap space of $55,000 from prior years. In 2025–26 he can contribute up to $85,000 in concessional contributions ($30,000 current cap + $55,000 carried forward). At his marginal tax rate, this saves him over $20,000 in tax in a single year — while meaningfully boosting his retirement balance.
Note: 2025–26 is the last year to use cap space from 2020–21. Those amounts expire 30 June 2026. |
If you have after-tax money to invest — from an inheritance, property sale, or savings — non-concessional contributions (cap: $120,000 per year) or the bring-forward rule (up to $360,000 in one year for eligible people) may also be worth exploring.
2. Review Your Investment Strategy
Many Australians set their super investment option when they first joined a fund and have never changed it. In the 5–15 years before retirement, your investment mix deserves a fresh look.
The key risk in this window is sequence of returns risk — a significant market downturn in the final years before retirement is far harder to recover from than the same drop a decade earlier. Most advisers recommend gradually reducing exposure to high-volatility assets as retirement approaches, while keeping enough growth exposure to combat inflation over a retirement that could last 25–30 years.
3. Other Strategies Worth Knowing About
Depending on your situation, the following may also be relevant:
- Salary sacrifice: directing pre-tax salary into super reduces your taxable income and boosts your balance. One of the simplest and most effective strategies available.
- Spouse contribution splitting: if your partner has a lower super balance, splitting up to 85% of your annual concessional contributions to their account can help equalise balances — which matters for tax efficiency and Age Pension eligibility in retirement.
- Transition to Retirement (TTR): once you reach preservation age (60 for most), you may be able to draw a TTR income stream while still working. The rules changed in 2017 and the strategy needs careful modelling — but it can still work well in the right circumstances.
- Downsizer contributions: from age 55, if you’ve owned your home for 10+ years, you can contribute up to $300,000 per person ($600,000 per couple) from a home sale into super — outside the normal caps.
The Right Strategy Depends on Your Situation
There is no universal answer. The optimal contribution level, investment mix, and timing depend on your income, age, super balance, other assets, and the retirement you’re planning for. What’s right for a 55-year-old with $800,000 in super looks very different from what’s right for a 48-year-old with $350,000.
This is exactly the work EPG Wealth does with clients — building a personalised picture of where you stand today and identifying the highest-impact moves available to you before retirement.
| Talk to EPG Wealth
EPG Wealth is a boutique, self-licensed financial planning firm in Sydney. We provide flat-fee, commission-free advice — so our recommendations are always in your interest.
Book a consultation at epgwealth.com.au or call us today. |
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General Advice Warning
This article is general information only. It has not been tailored to your personal objectives, financial situation or needs. Figures are current as at March 2026 and subject to change. Before acting on any information in this article, seek personal financial advice from a licensed adviser. EPG Wealth Pty Ltd is a self-licensed financial advice firm — AFSL details at epgwealth.com.au.