Retiring does not necessarily mean the opportunity to build your superannuation has ended. In fact, the years immediately after retirement can provide an important window to move additional savings, sale proceeds, inheritances or other capital into the concessionally taxed superannuation environment.

However, the strategy can change significantly once employment income stops.

While concessional contributions are often attractive during a person’s working life because they can reduce taxable income, a retiree with little taxable income may receive limited benefit from claiming a tax deduction. In those circumstances, non-concessional contributions may provide a simpler and potentially more effective way of moving capital into super.

The right approach depends on taxable income, contribution caps, total superannuation balance, age, future contribution plans and estate planning considerations.

Concessional versus non-concessional contributions

There are two main ways individuals can contribute their own money to super.

Concessional contributions are generally contributions for which a tax deduction is claimed. The contribution is normally taxed at 15% when received by the super fund and counts toward the concessional contributions cap. To claim the deduction, the individual must provide their super fund with a valid notice of intent and receive an acknowledgement from the fund.

Non-concessional contributions are made using money that has already been taxed personally. No personal tax deduction is claimed and, subject to the contribution rules, the amount is generally not taxed again when it enters the super fund.

For someone still earning a substantial salary, the tax deduction available on a concessional contribution can provide a meaningful immediate benefit. Once someone retires, however, the comparison can be very different.

Why retirement changes the concessional contribution equation

Consider someone aged 60 who has recently retired and has relatively little taxable income.

From 1 July 2026, the marginal personal income tax rate between $18,200 and $45,000 is 15%. A deductible personal super contribution is also generally taxed at 15% within the super fund.

That means someone whose taxable income sits within this range may receive little direct income tax benefit from converting after-tax cash into a concessional contribution. There may still be a Medicare levy benefit depending on their circumstances, but the overall advantage can be relatively small.

If taxable income is below the tax-free threshold, the case for claiming a deduction may be weaker again because there may be little or no personal income tax available to offset.

This does not mean retirees should automatically ignore concessional contributions. They can remain very valuable where the retiree has taxable income from sources such as:

• investment income;
• rental income;
• business or consulting income;
• trust distributions;
• realised capital gains; or
• other assessable income.

The important comparison is generally between the individual’s marginal tax rate and the 15% contributions tax applying within super.

When a concessional contribution may still make sense

Suppose a recently retired investor sells an asset and realises a significant taxable capital gain.

Even without employment income, their taxable income could move into a substantially higher tax bracket for that particular financial year.

In that situation, making a personal super contribution and claiming a deduction may reduce the taxable gain and generate a worthwhile tax saving.

The ATO confirms that deductible personal contributions are treated as concessional contributions and that taxpayers need to consider contribution caps and other consequences before claiming the deduction.

One-off events can therefore materially change the strategy from one year to the next.

A retiree may have very little reason to make a deductible contribution in one year, but a strong reason to do so the following year after selling an investment property or receiving another large taxable amount.

Why non-concessional contributions can be particularly useful in retirement

For a retiree contributing money that is already sitting in cash or another after-tax investment, a non-concessional contribution can often be the more straightforward option.

Using the 2026–27 settings described in the scenario, the annual non-concessional contribution cap is $130,000.

For someone with an existing super balance of approximately $800,000, that leaves considerable scope to move additional capital into super.

For example, someone receiving $200,000 could potentially contribute:

$130,000 as a non-concessional contribution during 2026–27, followed by the remaining $70,000 from 1 July 2027.

This approach can be particularly useful where the individual expects to receive further capital in subsequent years because it may preserve access to the bring-forward arrangements.

Using the bring-forward rules

Eligible individuals can potentially contribute more than one year’s non-concessional cap at once by bringing forward future contribution caps.

Under the 2026–27 figures in the scenario, someone who qualifies for the full three-year bring-forward could contribute up to $390,000.

For example, an individual with $800,000 in super could potentially contribute the entire $200,000 immediately rather than spreading it across two financial years.

Doing so would trigger the bring-forward provisions.

If $200,000 were contributed during 2026–27, approximately $190,000 of the three-year $390,000 cap would remain available during the remainder of the bring-forward period.

This can be entirely appropriate where there is no expectation of having substantial additional money available to contribute.

However, someone expecting to sell another investment, receive an inheritance or free up additional cash in the following year may prefer to contribute only the annual cap initially.

This is why contribution timing should be considered across several financial years rather than looking at the current year in isolation.

Your total super balance is critical

Eligibility to make non-concessional contributions and use the bring-forward provisions depends on the individual’s total superannuation balance at the relevant previous 30 June.

Using the 2026–27 thresholds described in the scenario, an individual with a total super balance of $800,000 is comfortably below the relevant limits.

Importantly, these tests are applied individually.

If one spouse has $800,000 in super and the other spouse has a substantially larger balance, the larger balance does not by itself prevent the first spouse from making contributions.

This can create valuable planning opportunities for couples whose superannuation balances have become uneven over time.

Where one spouse is approaching contribution or superannuation balance thresholds and the other spouse remains well below them, directing future capital toward the lower-balance spouse may provide greater flexibility.

A $200,000 example

Consider a 60-year-old retiree with:

• $800,000 already in super;
• $200,000 of new after-tax capital;
• no salary;
• relatively little other taxable income; and
• no previous bring-forward arrangement currently in force.

There are several possible approaches.

Under a staged contribution strategy, $130,000 could be contributed before 30 June 2027 and the remaining $70,000 after 1 July 2027.

This may preserve greater flexibility if more money becomes available later.

Alternatively, the entire $200,000 could potentially be contributed during 2026–27 by triggering the bring-forward arrangement.

That gets the capital into the superannuation environment sooner but reduces the amount that can subsequently be contributed during the remaining bring-forward period.

A third strategy may involve making part of the amount as a concessional contribution and the balance as a non-concessional contribution.

This might be appropriate if, for example, the retiree has a significant capital gain or other taxable income during the year.

The most appropriate combination therefore depends on much more than simply asking, “How much can I contribute?”

Do not claim a tax deduction just because you can

One common mistake is assuming that every available concessional contribution cap should automatically be used.

The contribution should produce a worthwhile tax outcome.

If $20,000 is contributed to super and claimed as a deduction, the super fund will generally pay $3,000 in contributions tax.

If claiming the deduction only saves approximately the same amount of personal tax, the strategy may have achieved very little.

By comparison, leaving the contribution non-concessional may allow the entire $20,000 to enter the member’s account without contributions tax.

This is why taxable income should generally be calculated before deciding how much of a personal contribution to claim as a deduction.

Capital gains can change the calculation

Capital gains deserve particular attention.

Someone may describe themselves as “retired” and have little regular income, but the sale of shares, an investment property or another asset can create significant taxable income in a single year.

A concessional contribution may then become considerably more valuable.

For example, rather than automatically contributing the entire $200,000 non-concessionally, an adviser may first calculate the expected taxable capital gain.

A portion could potentially be contributed concessionally to reduce taxable income, with the balance contributed non-concessionally.

The contribution strategy should therefore ideally be completed alongside the person’s tax planning rather than after the tax return has already been prepared.

The estate planning difference is also important

There is another potential advantage to non-concessional contributions that is sometimes overlooked.

Non-concessional contributions generally form part of the tax-free component of a person’s superannuation interest.

By contrast, concessional contributions generally add to the taxable component.

This distinction may have little impact while the member is alive, particularly once they are over 60 and drawing tax-free benefits from a taxed superannuation fund.

However, it can become important on death.

A surviving spouse will generally receive significantly more favourable super death benefit tax treatment than an independent adult child.

Where super eventually passes to financially independent adult children, the taxable component can potentially attract death benefits tax.

Increasing the tax-free component through non-concessional contributions can therefore form part of a broader estate planning strategy.

This is another reason why the decision should not be assessed solely on the immediate income tax deduction.

Age limits remain relatively flexible

At age 60, there is considerable flexibility to continue contributing to super.

Individuals between age 67 and 74 can generally continue making personal contributions without satisfying a work test.

However, the rules change if they want to claim a tax deduction for a personal contribution. From age 67, the work test or work test exemption generally needs to be satisfied before a personal contribution can be claimed as a tax deduction.

Broadly, the work test requires the individual to have worked at least 40 hours during a consecutive 30-day period during the relevant financial year.

There are also specific timing restrictions around contributions made close to age 75.

For someone retiring at 60, this means there can still be many years available to restructure assets and progressively move money into super.

Retiring does not mean contributions need to stop

There can be a tendency to view retirement as the point where money begins flowing only out of superannuation.

In practice, the early retirement years can involve both withdrawals and new contributions.

For example, a client may:

sell investments held personally;

contribute part of the proceeds to super;

commence or refresh an account-based pension;

retain an appropriate cash reserve outside super; and

gradually restructure their assets into the most appropriate ownership environment.

The flexibility available during this period can make retirement planning significantly more tax effective when it is coordinated over several years.

Be careful before commencing a pension

There is also an important administrative issue for people planning to claim a deduction for personal contributions.

A valid notice of intent to claim a deduction generally needs to be lodged with the super fund and acknowledged before certain events occur, including commencing a pension using those contributions.

The ATO specifically requires a valid notice and acknowledgement before the deduction can be claimed.

This means the order in which contributions, notices of intent, rollovers and pension commencements occur can matter.

An otherwise sensible tax strategy can be compromised if the pension is established before the required paperwork has been completed.

What should retirees consider before contributing?

Before making a significant super contribution after retirement, it is worth considering:

• your expected taxable income for the year;
• whether you expect to realise any capital gains;
• your existing concessional and non-concessional contributions;
• your total super balance at the previous 30 June;
• whether a bring-forward arrangement is already active;
• whether you expect to receive more capital over the next few years;
• your age and whether the work test applies;
• your transfer balance cap position;
• whether the contribution will ultimately move into pension phase;
• your need to retain cash outside super;
• Centrelink implications where relevant; and
• your estate planning intentions and likely beneficiaries.

A contribution should therefore form part of a broader retirement strategy rather than being considered simply as an isolated tax decision.

The key planning opportunity

For someone who has recently retired, the question is not necessarily whether concessional or non-concessional contributions are “better”.

The objective is to use each type of contribution where it produces the greatest benefit.

If taxable income is low, non-concessional contributions may allow more money to enter super without unnecessarily paying 15% contributions tax.

If taxable income is higher because of investment income, a capital gain or another taxable event, a concessional contribution may become considerably more valuable.

If substantial additional capital is expected in future years, preserving the bring-forward arrangement may also be important.

For couples, it can also be worthwhile examining both spouses together, particularly where one person has a considerably larger super balance than the other.

How Cadre Capital Partners Can Assist

Contribution planning can become complex very quickly when retirement, taxation, capital gains, pension commencement and estate planning are considered together.

Cadre Capital Partners can assist with modelling the different contribution strategies available to you, including whether funds should be contributed concessionally or non-concessionally, whether the bring-forward provisions should be used, how contributions should be spread across financial years and how the strategy interacts with your retirement income and estate planning objectives.

Where required, we can also work alongside your accountant to ensure the contribution strategy is coordinated with your expected taxable income and capital gains.

If you are approaching retirement, have recently retired or expect to receive a significant lump sum that you would like to contribute to superannuation, please contact Cadre Capital Partners to discuss your circumstances before making the contribution.

Important Information

This article contains general information only and does not take into account your personal objectives, financial situation or needs. Superannuation contribution caps, total super balance thresholds, tax rates and eligibility rules can change and may apply differently depending on your circumstances.

Before making a contribution, triggering the bring-forward provisions, claiming a tax deduction or commencing a pension, you should confirm the applicable limits for the relevant financial year and obtain appropriate financial and taxation advice.

Past performance is not a reliable indicator of future performance. Investing through superannuation involves investment risk, and the value of investments can rise or fall. Cadre Capital Partners recommends obtaining personalised advice before acting on any of the strategies discussed above.