Downsizer contribution: How Gail boosted her super

For many Australians planning retirement, the question isn’t just “How much super do I need?” It’s “Can I contribute more to my super after selling my home?”

For retired teacher Gail Mantel, the answer was yes, through the downsizer contribution.

After 44 years in education and decades living on a 13-acre property in the Adelaide Hills, Gail decided to downsize and retire in Tasmania. What she didn’t expect was how much confidence a downsizer contribution to her super would give her.

What is a downsizer contribution?

A downsizer contribution allows eligible Australians to contribute up to $300,000 from the proceeds of selling their home into their superannuation accumulation account, without it counting towards normal contribution caps (subject to eligibility rules).

For Gail, selling her long-time family home created an opportunity to strengthen her retirement savings.

“The downsizer contribution was a game-changer for me. Knowing I had extra funds in my super gave me peace of mind.”

Boosting her super balance before fully retiring gave her greater flexibility while building her new home, especially during the uncertainty of COVID-19.

Using the downsizer contribution to boost super before retirement

Like many Australians approaching retirement, Gail wondered:

• Do I have enough super to retire comfortably?
• Can I afford unexpected building costs?
• How will I manage without a regular income?

By contributing part of her home sale proceeds into her NGS Super account, she increased her retirement savings at a critical time.

Building in Tasmania took two years, and costs rose due to labour and material shortages. Having a stronger super balance meant Gail could draw on her superannuation retirement income stream with confidence.

Without the downsizer contribution, she says, the financial stress would have been much greater.

Transitioning from super savings to retirement income

Moving from full-time work to retirement can feel daunting. Gail met with NGS Super Specialists to understand how her superannuation could provide a steady retirement income.

“I was frightened at first, not having a salary,” she says. “Now I see my super as my income and my safety net.”

She regularly checks her super balance and has set a minimum level she wants to maintain for later life. Anything above that? “That’s the cream for travel, projects and spoiling my grandsons.”

Downsizing in retirement: more than just a move

Downsizing isn’t only about selling property. For Gail, it meant:

• Reducing maintenance and physical workload.
• Lowering bushfire risk.
• Simplifying her lifestyle.
• Strengthening her financial security.

Today, she lives in an environmentally designed home south of Hobart, surrounded by gardens, wildlife and rescue pets.

Her advice for others considering a downsizer contribution?

“Only you know when it’s time. Downsizing and contributing to my super gave me freedom and clarity. It allowed me to retire on my terms.”

Downsizing may not be right for you, so it’s a good idea to speak to one of our Super Specialists to explore your options. Our Super Specialists can also explain other retirement income considerations, like the option to make extra contributions using the ‘bring-forward’ rule, or if contributing more to your super balance will impact your Age Pension eligibility or your transfer balance cap.

Gail worked with NGS Super Specialist Thomay Gatis to plan and set herself up for the Downsizer contribution. You can book a chat with a Super Specialist today. This service is included in your membership at no additional cost.