Transitioning into retirement can be a challenging period. With a transition to retirement (TTR) strategy, you can navigate retirement planning with confidence – transitioning smoothly while maximising your super in a tax-effective way.
What is a transition to retirement income stream?
If you’re employed and aged 60-65, you may be eligible to access your super and receive a regular income. There are restrictions on accessing your super as a lump sum or on annual payments, so it’s worth researching these limitations before making decisions.
Why start a transition to retirement income stream?
A TTR strategy lets you reduce your working hours and receive pension payments that supplement your work income. You can also make pre-tax super contributions while drawing down a pension – potentially increasing your retirement savings in a more tax-effective way. Income stream payments must be between 4% and 10%.
Is a transition to retirement income stream right for you?
TTR strategies suit some circumstances but not all. Before deciding, discuss the relevant factors with one of our financial advisers – your age, super balance, your employer’s flexibility for part-time work and salary sacrifice, your tax position, your financial objectives, retirement needs and associated costs.
Why financial advice is important
If you’re aged 60-65 and still working, a retirement income stream can help you manage your finances effectively and supplement reduced work hours. But TTR strategies aren’t suitable for everyone, so consider your circumstances carefully and seek advice.
General advice warning: The advice provided is general advice only. In preparing it we did not take into account your investment objectives, financial situation or particular needs. Before acting on this advice, consider how appropriate it is to your needs and objectives, and consider the relevant Product Disclosure Statement before making any decision relating to a financial product.