Skip to content

Members Portal

moving on, retirement, downsizing

Downsizing your life and Upsizing your retirement

Is there any benefit to downsizing - should I stay, or should I go?
Your home is your castle. Over the years it has been a safe haven for your growing family and friends. It has been the entertainer, hosted many parties and has even changed colour, but now it feels empty and the ongoing cost to maintain it seems to be increasing each year. Perhaps you’re thinking it’s time to downsize and move up the coast or maybe a move into a low maintenance apartment seems like a feasible idea. If you are seriously considering a change in living arrangements by downsizing your home, you can use super to help you fulfil your retirement dreams. Read on to find out how.

How to boost your super by downsizing your home
To reduce pressure on house affordability and to free up more housing for younger, growing families, the Government introduced a ‘downsizing cap’ which will be effective from 1 July 2018. If you are aged 65 or over, you can add to your super by up to $300,000 (after tax) or a maximum of $600,000 (after tax) if you are a couple. To encourage downsizing, the government has made these contributions exempt from the usual age and work tests. However, when you use your housing proceeds to boost your super, it may impact your Age Pension and Social Security benefits. Whilst downsizing may be a tax efficient way to fund your retirement, before making any decision about selling your house, ensure you are fully informed about the pros and cons.

Club Plus Pension – a regular income in retirement.
After you have downsized and moved into your new home, you may need a regular income, so that you can start enjoying your new location straight away. To ensure you have easy access to your cash, you can invest in a tax effective income stream product, such as our Club Plus Pension. You choose when and how much you want to receive and can invest your money in one or a combination of investment options. However, you can only invest money from superannuation into a Pension account.

What should I do now?
Before you throw a farewell party with the neighbours, you should discuss your circumstances with a qualified financial adviser. For personalised information or advice call our Member Hotline on 1800 680 627 and we can refer you to Club Plus Financial Planning. They have a clear and in-depth knowledge of how the downsizing cap works and can advise you on your choice of pension investment options. Alternatively, you can visit the Government’s website at for more information or email Club Plus Financial Planning for a free no obligation appointment on

You can download the Downsizer contribution into superannuation form here.

For more information visit

This article has been prepared by Club Plus Superannuation Pty Ltd: ABN 26 003 217 990, RSE License No. L0000529, AFSL No. 245362 as trustee for Club Plus Superannuation Scheme: ABN 95 275 115 088. Any advice contained in this article is of a general nature only and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information, you need to take into account your own financial circumstances and seek financial advice if you are unsure what action to take.

 Club Plus Financial Planning Pty Ltd (Club Plus Financial Planning), ABN 14 143 636 766 is a Corporate Authorised Representative #367058 of Link Advice Pty Ltd ABN 36 105 811 836 (“Licensee”). The Licensee holds a current Australian Financial Services Licence #258145 and is responsible for the financial services provided to you. All Club Plus Financial Planning’s financial advisers are sub-authorised representatives of the Licensee.