Understanding the transition to retirement
The transition to retirement (TTR) initiative was introduced by the Government to encourage older Australians to remain in the workforce and slowly ease out of full-time employment.
Once you’ve reached what’s called your ‘preservation age’, the TTR rules allow you to access your superannuation benefits through a regular pension income - without having to retire.
Working Hours To Suit Your Lifestyle
Under TTR, you may be able to reduce your working hours without adversely affecting your lifestyle. The earnings within your pension account become tax-free, and, if combined with a salary sacrifice strategy, can help you enhance the value of your superannuation while you draw an income.
No work test is required with TTR; there are no restrictions on the hours you must work, or in what capacity.
If your cash flow from switching to part-time work is insufficient, you can use a TTR pension to supplement your income. This allows you to adjust your working hours to suit your pre-retirement lifestyle.
Build Your Super While Drawing a Pension
A salary sacrifice strategy is an effective way to top up your superannuation while you withdraw a TTR pension to maintain your cash flow. If you have surplus income from your salary, you can contribute the surplus back into superannuation with pre-tax dollars.
This can actually enhance your superannuation position over time.
What conditions do I need to meet?
In order to commence a TTR pension, you must have reached your preservation age, based on your date of birth, as follows:
| Before July 1960 |
55 |
| July 1960 – June 1961 |
56 |
| July 1961 – June 1962 |
57 |
| July 1962 – June 1963 |
58 |
| July 1963 – June 1964 |
59 |
| After June 1964 |
60 |
If you’re between 55 and 64 there are upper and lower limits on how much pension you can withdraw each year. Lump sums cannot be paid from your super during this time.
Outlook Financial Solutions, bankmecu’s preferred advice partner, is holding seminars and an online webinar to provide you with greater insight into this strategy. If you are considering retiring in the next 5 to 10 years you should attend.
| Victoria |
Quest Beaumont Kew
7 Studley Park
Kew |
15th November |
6.00pm to 7.00pm |
Quest Bendigo
489 High St
Bendigo |
15th November |
6.00pm to 7.00pm |
| Australian Capital Territory |
CSIRO Discovery, Link Room
Clunies Ross St
Acton |
15th November |
6.00pm to 7.00pm |
| New South Wales |
The Auditorium, Ground Floor, Riverside Life Service Centre
11 Julius Avenue
North Ryde |
15th November
|
6.00pm to 7.00pm |
| Queensland |
Hotel Grand Chancellor
23 Leichhardt St
Brisbane |
15th November |
6.00pm to 7.00pm |
| On-line Webinar |
| If you have access to a computer (Mac or PC) you can attend the retirement seminar online. The webinar will be held on Tuesday, 15 November at 12.30pm (EDST) |
Register your attendance by 10th November to Outlook Financial Solutions on 1300 657 872 or email contactus@outlookfs.com.au
Disclaimer: This publication has been prepared for general information and has not considered any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (express or implied) or other information should be acted on without obtaining specific advice from an Authorised Representative Outlook Financial Solutions Pty Ltd. (ABN 40 083 233 925, AFSL 240959)