Amanda Hardy Lai, Author at Retirement Essentials

Consolidating your super: All you need to know

As you head toward retirement, consolidating your super is one of the simplest yet most powerful steps you can take. But surprisingly, many Australians either delay it or aren’t sure where to begin.

Why it matters is simple: having multiple super accounts can quietly erode your retirement savings. Each account may be charging its own set of fees and insurance premiums. Over time, that duplication can cost you thousands – money that should be working for your future.

But the benefit of consolidation isn’t just about savings fees. It also brings clarity. When all your super is in one place, it’s easier to track your balance, review your investment mix, plan contributions and make informed decisions about retirement income options. Whether you’re just starting to plan your retirement or you’re getting ready to draw an income, having everything in one fund makes life easier.

Running the numbers: The comfort of knowing you’ll be okay

by Amanda Hardy Lai | Retirement Spending

“My husband is 74, and I’m 68. We own our home and have around $400,000 in super. We receive the full Age Pension and live off that for our regular bills. When something comes up — car repairs, holidays — we take money out of super. This amounts to about $20,000 a year. Are we going to be okay?”

That’s the question Judy asked. And it’s one we hear often.

Because it’s not always easy to know. There’s no single number that tells you everything’s fine. Retirement is full of moving parts — the Age Pension, super drawdowns, rising living costs, unexpected expenses — and even when things feel like they’re going well, many people wonder if they’re missing something.

So we helped Judy to find out.

Running the numbers

Together, she and her husband Andy had $400,000 in Account-Based Pensions (ABPs). Their Age Pension entitlement was $45,037 a year — the full rate for a couple who own their home. On top of that, they were drawing about $20,000 from super each year — bringing their total income in retirement to around $65,000 annually.

Using the Retirement Essentials retirement forecasting tool, we looked at how things might unfold. If they continue to spend at that level, our projections show they’re likely to be okay — all the way through their later years. By the time Judy turns 95 — and her husband reaches an impressive 101 — they’re still expected to have around $38,000 remaining in super and investments.

In short? Things look reassuring.

But we didn’t stop there.

Will spending boost your Age Pension?

by Amanda Hardy Lai | Centrelink Age Pension

What if spending some of your savings could actually increase your income in retirement? For people with assets just above the Age Pension cut-off, that’s not just wishful thinking—it’s a real and measurable opportunity.

From 20 March 2025, the updated Age Pension asset thresholds mean that even a small reduction in assessable assets could make you eligible for a valuable part-Age Pension. The amount that you receive may start small but can grow over time and deliver substantial financial benefits across retirement.

When the pension stops

The Age Pension is subject to an asset test that reduces your payment by $3 per fortnight for every $1,000 you have above the lower threshold. Once you reach the upper limit, the payment stops entirely.

For couples who own their home, that upper limit is $1,047,500. If your combined assets exceed that—even by just one dollar—you won’t receive any Age Pension at all.

Here are the key thresholds for part-Age Pension eligibility from 20 March 2025:

Your situationHomeownerNon-homeownerSingle$697,000$949,000Couple combined$1,047,500$1,299,500Couple, separated due to illness$1,236,000$1,488,000

These thresholds apply to both your financial and personal assets. For couples, it’s the total amount that counts.