Page 5 - Wealth Adviser Newsletter March 2025

ISSUE 107
MARCH 2025

The Evolution of

Retirement Planning:

How New Super Rules and

Investment Strategies

Are Reshaping Financial

Futures

Depositphotos.com

BY WEALTH ADVISER Understanding the 2025-26 Superannuation
Thresholds
Introduction: The Changing Landscape of The 2025-26 financial year brings significant changes to
Retirement Planning superannuation thresholds, which will have far-reaching
As we navigate through 2025, retirement planning in implications for retirement planning. According to the
Australia is undergoing significant transformations. Recent FirstLinks article, “The ATO has announced the key super-
changes in superannuation rules and investment strategies annuation thresholds for 2025-26, with increases across the
are reshaping how Australians approach their financial board due to indexation.” (FirstLinks, 2025)
futures. These changes, particularly the 2025-26 super
thresholds and evolving retirement income strategies, are Concessional and Non-Concessional
creating both challenges and opportunities for individuals Contribution Caps
and financial advisers alike. One of the most notable changes is the increase in
The Australian superannuation system, long regarded as contribution caps. The concessional contributions cap has
one of the world’s leading retirement savings frameworks, risen to $30,000, up from $27,500 in the previous year. This
is adapting to meet the changing needs of an ageing popula- increase allows individuals to contribute more to their su-
tion and a dynamic economic environment. As noted by the perannuation on a pre-tax basis, potentially reducing their
Australian Government’s Retirement Income Review, “The overall tax liability while boosting their retirement savings.
Australian retirement income system is effective, sound and Similarly, the non-concessional contributions cap has
its costs are broadly sustainable. But it can be improved.” increased to $120,000, up from $110,000. This change is
(Treasury.gov.au, 2020) particularly significant for those looking to make larger
This article will explore the key changes in superannua- after-tax contributions to their super. As the FirstLinks
tion thresholds, delve into the complexities of investment article states, “The bring-forward amount will increase to
risk in superannuation, and examine emerging retirement $360,000 allowing eligible members under 75 to contribute
income strategies. By understanding these evolving aspects, up to three years of non-concessional contributions in a
Australians can better position themselves for a secure and single year.”
comfortable retirement. (FirstLinks, 2025)

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