By Philippa Billings, Chief Advice Officer, Otivo
The decade before retirement is a strange window, the highest-earning years for many people, and the last real chance to move the needle on super, but also the shortest runway for compounding to help. That combination makes the run-up years worth using deliberately. A few levers do more in this stretch than at any other time. Here's what's available when retirement is in sight.
In the years before retirement, several levers can lift your super. These include making catch-up concessional contributions using carry-forward if eligible, adding after-tax contributions, and the downsizer contribution for those who qualify. As at July 2026, the concessional cap is $32,500 for 2026-27, and eligible people from age 55 can make a downsizer contribution from the sale of their home.
What makes the pre-retirement years different?
Two things change in the final stretch. Earnings are often at their peak, which frees up more capacity to contribute, and the money you add is locked away for years rather than decades, since retirement is close. That shorter lock-up removes one of the usual hesitations about putting money into super. The trade-off is that compounding has less time to work, so the gains come more from the contributions themselves and their tax treatment than from decades of growth.
How does carry-forward help you catch up?
Carry-forward lets you use unused concessional cap from earlier years to make a larger contribution now. Unused amounts from the previous five financial years can be added to the current year's cap, used oldest first, provided your total super balance was below $500,000 on 30 June of the prior year and you're eligible to contribute, generally under age 75. For someone who paused work to raise children or ran their own business through lean years, that accumulated headroom can allow a meaningful one-off catch-up in a high-income year. The mechanics and eligibility are covered in full in our guide to how contribution caps work.
What is the downsizer contribution?
The downsizer contribution lets eligible people put proceeds from selling their home into super. From age 55, an eligible individual can contribute up to $300,000, or up to $600,000 for a couple, from the sale of a home they've owned for at least ten years. What makes it distinctive is that it sits outside the non-concessional cap and isn't affected by the usual total super balance limits on contributions, so it can move a substantial sum into super late in the piece. Not everyone qualifies, and the eligibility conditions are specific, so the ATO is the place to confirm the detail.
Can a transition to retirement strategy help?
It can play a role for those who've reached preservation age. A transition to retirement arrangement lets you draw a limited income stream from super while still working, which some people combine with salary sacrifice to keep building super in a tax-effective way. Claiming a deduction on any personal contributions still requires lodging a valid notice of intent with your fund and having it acknowledged. Whether this approach suits an individual depends heavily on their circumstances, so it's an area where personal figures matter.
What should you weigh before boosting super late?
A few practical points. Money added to super is preserved until you meet a condition of release, so it needs to be money you won't need in the meantime. The contribution caps still apply, and for very high earners Division 293 adds an extra 15% on concessional contributions above a $250,000 combined-income threshold, taking the tax on those to 30%, though they remain concessionally taxed. Otivo's own advice data shows the payoff of getting this right. When customers follow Otivo's advice in full, they could be better off on average by around $180,356 through optimised contributions, measured in today's dollars at retirement.
Frequently asked questions
Is it too late to boost my super in my 60s?
Often not. The downsizer contribution is available from age 55, contributions within the caps can continue generally until age 75 subject to eligibility, and a transition to retirement arrangement may be an option after preservation age.
What is the downsizer contribution?
It lets eligible people contribute up to $300,000 each, or $600,000 for a couple, from selling a home owned for at least ten years, from age 55. It sits outside the non-concessional cap, and the ATO sets the full eligibility rules.
Can I put a lump sum into super before retiring?
Yes, subject to the contribution caps and your eligibility. The non-concessional cap and its bring-forward rules govern after-tax lump sums, while the downsizer contribution is a separate avenue for home-sale proceeds.
Where to from here
The pre-retirement window rewards a plan rather than a scramble. Otivo, a licensed Australian financial advice platform holding AFSL and Australian Credit Licence No. 485665, offers a salary sacrifice contributions module that shows how adding to super in these years could change your position, based on your income, age, retirement age and household expenses. It helps you use the runway you have left.
Sources
- Australian Taxation Office — carry-forward concessional contributions, downsizer contributions, transition to retirement and Division 293 — ato.gov.au
- ASIC MoneySmart — boosting your super before retirement — moneysmart.gov.au
- Otivo — advice outcome data, optimised contributions — otivo.com
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.