174. Downsizer Contributions


Welcome back to another episode of the 360 Money Matters Podcast! 

In this episode, we discuss downsizer contributions to superannuation, exploring how this strategy allows individuals aged 55 and over to contribute up to $300,000 from the sale of their home into their super, without affecting other contribution caps. We break down the eligibility rules, the financial benefits of moving assets into a tax-free super environment, and the broader economic implications, including its potential to free up housing stock. While originally framed as a way to encourage retirees to move into smaller homes, we consider whether the true intention was to boost baby boomers’ retirement savings. Finally, we emphasize the importance of strategic planning and financial advice when considering this approach.

Tune in to learn how downsizer contributions can boost your retirement savings and maximize your tax-free income—don’t miss this essential strategy!

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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706

 

Episode Highlights

  • Understanding downsizer contributions and how they work

  • Eligibility requirements and key rules for making a downsizer contribution

  • The financial benefits of moving home equity into superannuation

  • How downsizer contributions can create tax-free income in retirement

  • The misconception of needing to “downsize” to take advantage of this strategy

  • Potential government motivations behind the policy and its economic impact

  • Importance of planning and getting financial advice before making a move

 

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