Your Retirement Income Checklist for 2025

Part 5 of our editorial series: "Your Pension, Your Future"

As we approach July 2025, a number of policy changes are set to affect how Australians structure their income in retirement. Whether you’re already retired or planning your next chapter, it’s important to understand how the pieces fit together: superannuation, pension entitlements, downsizer contributions, and tax.

At Downsizing.com.au, we’re here to help you make confident, informed choices. This practical checklist will help you assess your retirement income strategy and take action where needed.

1. Review Your Super Balance and Strategy

• Are you approaching or over the $3 million super balance threshold? If so, plan for the additional 15 percent tax on earnings.

• Have you maximised your Transfer Balance Cap, which increases to $2 million from July 2025?

• Do you have the right asset mix for income and stability in retirement?

Concessional contributions cap

2. Understand Your Pension Eligibility

• Are you receiving the full or part Age Pension? Review how upcoming deeming rate changes may affect your income test.

• Consider how your financial assets (including super and cash savings) will be assessed.

Assets test for Age Pension

3. Consider a Downsizer Contribution

• If you’re 55 or over and planning to sell your home, are you making use of the downsizer contribution? You can contribute up to $300,000 per person to super outside standard caps.

• This could help shift more of your funds into tax-effective structures.

Downsizer super contributions | Australian Taxation Office

4. Revisit Your Investment Income Plan

• Is your income coming from a mix of super pension, personal savings, rental income, or managed funds?

• Ensure your drawdown strategy aligns with the latest rules and your lifestyle goals.

Tip: Consider splitting income sources between partners to manage tax brackets and pension eligibility.

5. Check for Health and Concession Card Eligibility

• The Commonwealth Seniors Health Card can offer valuable benefits even if you don’t receive the pension.

• Eligibility is income-tested, so keep track of your estimated income including deemed income.

Commonwealth Seniors Health Card - Services Australia

6. Seek Financial Advice

Major changes like downsizing, large super contributions, or transitioning to the pension phase can have long-term consequences. A licensed financial adviser can help you:

• Tailor your strategy.

• Minimise tax.

• Maximise entitlements.

Stay Informed with Downsizing.com.au

We’re here to help you make confident financial decisions, whether you’re managing your own super, planning a move, or supporting your family's future.

Downsizing.com.au Presents Our Editorials Series

1. Superannuation Changes for Retirees: What the 2 Million Dollar Cap Really Means
2. How the New Super Tax Impacts Self-Funded Retirees
3. Downsizing and Your Super: Make the Most of Your Home Sale
4. Aged Pension and Deeming Rates: What to Expect After June 2025
5. Your Retirement Income Checklist for 2025
6. Case Studies: How Real Australians Are Navigating the 2025 Changes
   
   

Disclaimer: This article provides general information only and does not take into account your personal financial situation or needs. You should consider obtaining independent financial advice from a licensed professional before making any decisions based on this content.