The transfer balance cap limits how much you can transfer into retirement phase income streams. The general transfer balance cap is currently $2 million (2025/26). You will have your own personal transfer balance which may be anywhere from $1.6 million to $2 million depending on whether you have commenced a retirement phase pension and when, and how much of the transfer balance cap you have used.

Your personal transfer balance cap applies to all retirement phase income streams, including:

• Account based pensions.
  
• Transition to retirement pensions that are in retirement phase, and
  
• Defined benefit pensions.

Your transfer balance amount is calculated using a credits and debits system. Super money transferred into a retirement phase account will increase your transfer balance amount. Conversely, any lump-sum withdrawals – known as commutations – you make from a retirement phase account will reduce your transfer balance amount.

Investment earnings you may receive won’t impact your transfer balance amount, even if they take your balance in retirement phase over your personal transfer balance cap. Also, pension payments won’t reduce your transfer balance amount.

If you exceed your transfer balance cap, you may have to:

• remove the excess (and earnings as calculated by the ATO) from one or more retirement phase income streams, and
  
• pay additional tax.