And at last you can afford to contribute much more of your salary into super.

Maybe, you are taking a transition-to-retirement pension that enables you to keep working and to re-contribute much, if not all, of the money back into the concessionally-taxed super system to gain tax and retirement-saving benefits.

If you fit this profile, it may be time to consult a financial planner or, at least, to gain an understanding of how the halving from 2012-13 of the standard annual cap on concessional super contributions for members over 50 may affect your strategy.

From July next year, the standard concessional contributions cap for over-fifties will drop from $50,000 to an indexed $25,000 to fall in-line with the concessional cap for members under 50.

The Government has proposed keeping the cap at a non-indexed $50,000 for those over 50 members with less than $500,000 in super.

You may well think: "Oh, that change is months away; I have other more immediate things to concentrate on right now".

But rest assured, many financial planners would now be crunching the numbers to enable their clients to determine the best strategy for them from July next year. It is something that demands consideration well ahead.

Depending upon their circumstances, some fund members may decide to change the size of their transition-to-retirement pensions, change the amount being salary-sacrificed into super, and change the mix between concessional and non-concessional (after-tax) contributions. There is plenty to think about.

By Robin Bowerman
Smart Investing
2nd November  2011
Principal & Head of Retail, Vanguard Investments Australia