The couples’ guide to managing super for retirement

While retirement planning is often framed as an individual journey, couples’ superannuation decisions are rarely made in isolation. Whether you’ve been managing finances together for years or are only now turning your attention to retirement, the way you navigate super as a couple can make a significant difference.

While combining resources can provide financial security, many couples face challenges such as uneven super balances, differing retirement timelines, or unexpected life changes like divorce or the loss of a partner. Understanding the financial rules and strategies available to couples, as well as the emotional and practical aspects of managing retirement together, can help you make the most of your super.

The financial strength of couples in retirement

Shared assets, shared security?

One of the biggest advantages couples have in retirement is the ability to pool resources. For many, homeownership is the cornerstone of financial stability. Owning a home outright means greater financial security, lower living costs and greater flexibility in managing super and other investments. Additionally, couples often benefit from dual super balances, shared savings, and the ability to plan together for the best financial outcomes.

However, while joint assets can provide security, they also require careful planning—especially when it comes to accessing the Age Pension. Centrelink assesses combined assets and income, which means your eligibility might be affected by your partner’s finances. Understanding how your joint situation affects entitlements can help you plan ahead.

Why do many couples have unequal super balances?

It’s common for one partner to have significantly more super than the other. Career breaks for caregiving, part-time work, and income disparities often lead to uneven balances. Women, in particular, tend to retire with lower super due to time spent out of the workforce raising children or caring for family members. (In today’s article ‘How much is enough’ we reveal the imbalance in current median super balances.)

This imbalance can have long-term consequences, particularly if the partner with less super is financially vulnerable in retirement. However, couples can take advantage of strategies to help even out their super and improve their financial outcomes.

How couples can optimise super together

There are several ways couples can use the super rules to their advantage:

• Spouse contributions – If one partner earns less than $40,000 per year, the other can contribute up to $3,000 into their super and receive a tax offset.
• Contribution splitting – Couples can transfer up to 85% of concessional contributions from one partner’s super to the other’s, helping balance super accounts over time.
• Super rebalancing – Keeping more funds in the younger spouse’s super can help reduce assessable assets and improve Age Pension eligibility.
• Downsizer contributions – Selling the family home can allow each partner to contribute up to $300,000 into their super, significantly boosting retirement savings.

Retiring at different times

Not all couples retire at the same time. Sometimes, one partner will stop working while the other continues earning, either by choice or necessity. This situation requires careful planning, as super drawdowns, tax implications, and government entitlements can vary depending on your combined income.

If one partner is under Age Pension age, keeping more assets in their super (in accumulation phase) can be a strategic way to minimise assessable assets and increase potential Centrelink benefits for the older partner. It’s worth reviewing how your timelines affect both super and pension eligibility.

What happens when things change? 

Divorce, death & going solo

Divorce and super

Divorce later in life is becoming more common, and superannuation is an asset that must be considered in settlements. Unlike other assets, super can’t simply be withdrawn and split as cash; instead, it remains in the super system until each person meets a condition of release (usually by reaching Preservation Age).

If you’re separating, it’s crucial to understand how super is divided, what legal steps you need to take, and how your financial future will be impacted. Getting professional advice from both legal and financial experts will help ensure a fair outcome.

Losing a spouse

Losing a partner is not just an emotional challenge but a financial one too. Superannuation death benefits can be complex, with different rules depending on whether you’re a spouse, dependent, or nominated beneficiary.

If your partner has a super pension, payments may continue to you as a reversionary pension, but if they had a lump sum, you may need to make decisions about withdrawals and taxation. It’s important to review your financial plan and ensure you have proper estate planning measures in place well before any need arises.

Practical tips for couples to maximise their retirement outcomes:

These are the steps couples can take today to ensure a stronger financial future in retirement:

1. Review super balances and contributions – Check whether contribution splitting or spouse contributions can help to even out your super.
2. Plan for different retirement timelines – Consider the financial impact if one of you retires earlier than the other.
3. Understand the Age Pension rules – Know how your combined income and assets affect your entitlements. Remember, by your 80s, there is an 80% chance you will receive at least a part-Age Pension, so it’s prudent to know when this might be so you can apply as early as possible.
4. Prepare for unexpected changes – Ensure your estate planning, wills, and super beneficiary nominations are up to date.
5. Seek advice if needed – A consultation with a qualified professional, including financial, tax and legal professionals who can help you ensure you’re maximising your super and entitlements.

Retirement as a couple requires careful planning, but with the right strategies, you can build a secure and fulfilling future together.

Managing retirement as a single person

Not everyone is partnered. Retirement planning as a single person comes with different considerations. Without a partner’s income or superannuation contributions, financial independence becomes even more critical. Key steps include:

• Reviewing your super and ensuring you have enough savings to last through retirement.
• Understanding your eligibility for government support, such as the Age Pension or Commonwealth Seniors Health Card (CSHC).
• Planning for long-term healthcare and aged care needs.
• Seeking professional financial advice to optimise your financial situation.

Get the right retirement support, your way

At Retirement Essentials, our experienced advisers are able to help everyday Australians make better financial decisions in retirement. Whether you’re navigating super as a couple, maximising your entitlements, or planning for long-term financial security, the step-by-step support in a Retirement Strategy Consultation makes the challenge much simpler to find the best strategy for you.

What about you?

Have you or your partner discussed how to balance your super savings for retirement? What strategies have worked for you so far?

This article is provided by Retirement Essentials Representative Number: 001260855. We are an authorised representative of SuperEd Pty Ltd ABN 88 118 480 907 AFSL #468859. This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read the relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.