Draw a tax-effective income from Super to maintain your lifestyle
Are you aged 55 or over?
Would you like to boost your retirement savings tax-effectively while you’re still working?
Would you like to wind back your work hours without winding back your lifestyle?
How does it work?
Everyone has their own goals heading into retirement. Some would like to make a gradual transition by reducing their working hours. Others are looking for ways to boost their super while they’re still working full time.
If you’ve reached your preservation age (currently age 55), a Transition to Retirement (TTR) strategy can help you meet either of these objectives – allowing you to top up your regular income with pension income from your super.
What does it mean for me?
There are two main ways you may be able to use a TTR strategy.
1. Transition to part-time work without reducing your income
If you reduce your working hours leading into retirement, a TTR strategy can help you supplement your reduced salary with tax-free or tax-effective income payments from a TTR pension. In other words, you’re working less, but receiving the same income, and you may be paying less tax while you’re at it.
2. Tax-effectively boost your retirement savings while you’re working full time
If you’re still working full time, you may be able to contribute some or all of your pre-tax salary into super and withdraw a tax-effective TTR pension to make up for the reduction in your take-home pay.
How do I know if I qualify?
To qualify under TTR rules you must have reached your preservation age, as per the following table:
For more information on the Transition to Retirement strategy and how it can help you, please contact your Altitude Financial Planner.
Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd
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The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.
