Transition to a life without work

retirement image

Did you know a transition to retirement strategy could help you minimise your income tax after you turn 55?
Did you know you can ease into retirement by reducing your working hours without reducing your income?
Did you know we can help you reduce your tax without increasing your risk?

In the years leading up to retirement, you are probably looking forward to having more time to do the things you love, but you are concerned that you will not have saved enough money to fund your lifestyle. The process of retirement is changing and so are the government guidelines, a transition to retirement strategy could be the key to unlocking your financial future.

What is Transition to Retirement?
If you’re over 55 or nearing that age and have super already, the “transition to retirement” rules could help boost your super savings without cutting back on your lifestyle. Whatever your dreams of retirement are you can start planning today for that retirement you’ve always wanted.

How does a Transition to Retirement Strategy work?
The Transition to Retirement Strategy allows people who are over 55 to access their super whilst still working. You can reduce the number of hours you work and supplement your income payment from your pre-retirement pension.

Alternatively, you could continue working full-time but take advantage of the potential tax concessions on offer to boost your super in the years before you enter full retirement.

Case Study:

Peter is now 60 years old and is worried about how much he has saved for retirement.
Earning a Salary of $80,000pa including super ($61,253 after tax).
Peter would find it very difficult to reduce his take home wage.
He currently has $350,000 in his super account.
He plans to retire in 5 years.
By implementing a Transition to Retirement Strategy over 5 years when Peter retires he has saved $47,990 in tax and contributed an extra $117,300 into Super.  The below tables show how this strategy is implemented.


TTR table 2

In 5 years when Peter retires:-
Saved $47,990* in tax (*tax rates remain the same) Contributed an extra $117,300* into super (*contribution caps remain the same).

Peter has kept the same take home pay!

Talk to us today on (03) 9744 7144 about your Retirement Strategy.  Our professional team can help you achieve your retirement goals.

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