We have $5m in super as a couple. How can we contribute more?

Q: Can going into the pension phase help our super contribution strategy? I’m 64 and my wife is 65. I have a $3.4 million super balance, and her balance is $1.7 million. I am a sole trader in business, and we’re both on the 30 per cent marginal tax rate after maximising contributions to our SMSF, and we have enough cash flow to live from the business. We want to keep working for five years or more but seem to be facing contribution headwinds. For instance, I understand I can no longer split my annual concessional contribution with my wife as she is now 65, and of course, there may be a new tax on balances over $3 million.

Also, my wife has three times worth of the non-concessional contribution cap limit from an inheritance that we understand would be better housed in the SMSF, but we also understand her balance is now too high for that? We’ve recently understood she could go into the pension phase, and I’m wondering if triggering that might help with taxation? However, I’m concerned about locking in a transfer balance cap, assuming we each live for another 20-plus years? We have no dependents if that makes any difference. Michael.