Transition to Retirement Pensions

It's very rare these days that people move from full-time work directly to full-retirement. When you're used to working, you'd feel lost without it.

However, as you approach another birthday, you might not have as much energy as you used to, or maybe you're just looking forward to enjoying the freedom of some more time to do exactly what you want to do.

Retirement isn't black & white

To facilitate a gradual transition to part-time work and later retirement, you can access some of your super while you are still working.

This gives you the freedom and flexibility to reduce your taxable income, or your working hours while maintaining your current income.

Your transition to retirement pension

Transition to Retirement Pensions (TTRP) are a great way to ease into retirement, and can provide a level of flexibility in your life you might not have thought possible.

A TTRP strategy can be used in a number of ways to suit your lifestyle choice and needs. For example, you may:

  • Reduce your working hours and use your pension income to supplement lost income.

  • Continue to work full time, and salary sacrifice more of your pre-tax income into super (to boost retirement savings and reduce tax payable), while taking a pension to maintain the same level of cash flow.

Choose the right strategy for you

Once you reach preservation age, you can draw between a minimum of 4% and maximum of 10% of your superannuation balance as a TTR Pension.

This strategy can assist you until you are ready to retire.

Book a consult now to learn more.

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