Transition To Retirement

A simple reorganisation of your finances and superannuation could save you thousands. Putting a Transition to Retirement strategy in place could really put you ahead. 

If you are between age 55 and 75, the benefits can include:

Boost your super before retirement -  With this option, you can continue to work full time and still commence a pension.

Scale back your working hours and earn the same income - During uncertain times you may decide not to retire fully, and this option may help.  These benefits can add up to a better lifestyle now and a better super balance at retirement.

How it works -  From preservation age (55 for many people), you are able to access your super as a regular income through a transition to retirement pension, even if you are still working. 

This pension income generally attracts less tax (and is tax free after age 60) than income through work, so can be used to supplement or even replace your income.  It allows you to work less hours and still have the same income to play with.  A transition to retirement pension can be even more powerful if combined with salary sacrifice whilst you are still working. Because your salary sacrifice contributions are taxed at a lesser rate when they go into your super, you can direct your work income into your super and replace it with a transition to retirement pension. 

This could mean being substantially better off in retirement without compromising your lifestyle now. 

Making the right choices is crucial.  You need to set up your super and salary arrangement in exactly the right way to make the most of a transition to retirement strategy.  And of course everyone benefits differently depending on their personal financial circumstances. 

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