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Downsize to boost your retirement income

At 65, Julie and Hendrix are ready to retire. They want to boost their retirement income and decide to take advantage of the government’s downsizer contribution to increase their super balance.
Here's how they did it.

Julie and Hendrix

Julie and Hendrix retire at 65 with a combined super balance of $414,210


 

Six months ago

Julie and Hendrix sell their family home +$800,000
They then buy a smaller apartment -$400,000
They also invest in their grandchildren's education -$50,000

That leaves them with $350,000 from the sale. Using the downsizer contribution, they add $175,000 each to their super (total $350,000).* Their combined super balance increases to $764,210.
 

Next steps

They invest their super in an account-based pension, balanced investment option, and receive an annual pension of $50,000 p.a., which could last till they’re 82 years old.

We also have a few handy tools

Retirement forecaster

Budget calculator 

Small change, big savings

View our tools

What's next? 

Boost your super by selling the family home.

How you can use the sale of your family home to boost your super. 

Find out more


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Substantial legacies can pose challenges. Here are some things to bear in mind.

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Aussies making a slow transition to retirement

Retirement used to be a clearly demarcated milestone in the life of a working Australians. That’s not so simple any more.

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Related products and services

Easy to manage pension account
MLC Masterkey Pension Fundamentals

Easy to manage super
MLC Masterkey Super Fundamentals

Advise-managed portfolio
MLC Wrap super solutions
 

Important information

The examples above are for illustrative purposes only and are not an estimate or guarantee of your account. Neither Kaiden nor Jen is an actual customer of MLC.
ASFA superannuation account balances by age and gender Oct 2017. Table 1: Average superannuation balances by age and gender, 2015-16.
The example assumes both Kaiden and Jen’s current age is 60 with no regular income; they’re looking to retire at 70. Their starting super balance is $214,897 and they both pay $60 p.a. in administration fees. Jen has a balanced investment option while Kaiden has a cash investment option. Investment return for Jen is 4.8% and Kaiden’s investment return is 2.7%. The tax on earnings for Jen is 6.5% while for Kaiden it’s 15%. Investment fees for Jen are 0.5% and for Kaiden are 0.05%. Both Jen and Kaiden pay $100 in insurance fees. For both Jen and Kaiden, the CPI is 2% and the cost of living rise is 0%. Investment options and returns assumptions are based on ASIC’s MoneySmart Superannuation calculator. https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/superannuation-calculator