Beginning the transition to retirement 

Transitioning into retirement can be a challenging period. With a transition to retirement (TTR) strategy, you can confidently navigate the challenges of retirement planning. By implementing this strategy, you can transition smoothly into retirement while also maximising your super in a tax-effective manner.

What is a transition to retirement income stream? 

If you are currently employed and fall within the age bracket of 60-65, you may be eligible to access your super and receive a regular income. However, it’s important to keep in mind that there are restrictions in place when it comes to accessing your super as a lump sum or receiving annual payments. It’s worth researching these limitations before making any decisions about your super.

Why start a transition to retirement income stream? 

A transition to retirement strategy enables you to reduce your working hours and receive pension payments, which supplement your work income. You can also make pre-tax super contributions while drawing down a pension. This strategy can increase your retirement savings and might be more tax-effective. However, it is important to note that income stream payments must be between 4% and 10%.

Is a transition to retirement income stream right for you? 

It’s important to note that the transition to retirement strategies is only suitable for some circumstances. Before deciding if such a strategy is right for you, you should discuss certain factors with one of our financial advisers. Factors to consider for transitioning to retirement income stream include age, super balance, employer’s flexibility for part-time work and salary sacrifice, tax position, financial objectives, retirement needs, and associated costs.

Why financial advice is important 

In short, if your between the ages of 60-65 and still working, you have the option to start receiving a regular income from your super savings through a retirement income stream. This can be really helpful in managing your finances effectively. Also, if you want to reduce your working hours, you can consider a transition to retirement strategy and supplement your work income with pension payments. However, it’s important to keep in mind that TTR strategies may not be suitable for everyone. You should consider your age, super balance, and associated costs before making a decision.

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 making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.