Part 6 of our editorial series: "Your Pension, Your Future"
Sometimes the best way to understand change is to see how others are responding to it. In this final piece of our editorial series, we’re showcasing real-world scenarios inspired by our diverse Downsizing.com.au personas.
Whether you're self-funded, receiving a pension, or still working part-time, these stories offer practical insights on how to navigate the July 2025 superannuation and pension reforms.
1. Alan – The Self-Funded Planner
Profile: 72, retired, self-managed super fund over $3.2 million, lives in a luxury retirement apartment.
Challenge: With the new super tax rules kicking in from July 2025, Alan will face a 30 percent tax on earnings from his balance above $3 million.
Action: He’s working with his adviser to:
- Reduce unrealised gains in his SMSF.
- Reallocate part of his balance outside super.
- Review estate planning strategies to minimise long-term tax impact.
Alan’s Tip: "Know your numbers early and seek specialist advice. The tax doesn’t need to catch you off guard."
Superannuation Cap Changes - ATO
2. Carol – The Caring Downsizer
Profile: 68, retired nurse, sold the family home to support aged care for her partner.
Challenge: Maximise flexibility while preparing for future care needs.
Action:
- Contributed $250,000 from her home sale as a downsizer contribution.
- Moved into a two-bedroom retirement apartment close to family.
- Started receiving a super pension stream for regular income.
Carol’s Tip: "The downsizer rule gave me control. I’m living simply but securely, with funds available for whatever the future brings."
3. Helen – The Active Empty Nester
Profile: 67, works part-time at an art gallery, owns her home.
Challenge: She’s planning to downsize next year and wants to boost her super while continuing to work.
Action:
- Tracking the increase in the Super Guarantee to 12 percent from July 2025.
- Exploring when to sell and make a downsizer contribution.
- Planning to use the new $2 million transfer balance cap to keep more of her savings tax-free.
Helen’s Tip: "Even part-time work boosts your super. Downsizing is about lifestyle, not just money."
Retirement Downsizing Properties
4. Maria – The Community Seeker
Profile: 75, single, receives the full Age Pension, lives in a retirement community.
Challenge: Low savings and minimal super mean even small pension changes matter.
Action:
- Keeping informed about the end of the deeming rate freeze.
- Accessing free Centrelink financial services to prepare.
- Exploring part-time volunteer roles with potential allowances.
Maria’s Tip: "I stay informed and ask questions. I know what I’m entitled to."
How Assets Impact Your Pension
5. Rob & June – The Sea Change Couple
Profile: Both 60, working full-time, planning a sea change and early retirement in the next 2 years.
Challenge: Navigating the complex interaction between downsizing, super growth, and future pension eligibility.
Action:
- Attending a retirement planning seminar.
- Strategising a staged move: one keeps working while the other retires.
- Planning to use the downsizer contribution and stay below asset limits for Age Pension eligibility later on.
Their Tip: "We’re treating downsizing like a business decision and a lifestyle move. Planning now gives us more choices."
Commonwealth Seniors Health Card
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.
Each of these Australians reflects a different aspect of retirement life. While their stories vary, the key message is consistent: staying informed, planning ahead, and using the new rules to your advantage can help you live more securely, comfortably, and confidently in retirement.
Downsizing.com.au Presents Our Editorials Series
- Superannuation Changes for Retirees: What the 2 Million Dollar Cap Really Means
- How the New Super Tax Impacts Self-Funded Retirees
- Downsizing and Your Super: Make the Most of Your Home Sale
- Aged Pension and Deeming Rates: What to Expect After June 2025
- Your Retirement Income Checklist for 2025
- 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.
