Transition To Retirement

Accessing your super early

A Transition to Retirement strategy allows people who are 55 or over & still working to access their super in the form of an income stream. This doesn’t mean you have to retire

This strategy provides an opportunity to increase retirement savings before ceasing work. If you are aged between 55 and 65, accessing your super via transition to retirement pension provides the following options:

  • Boost your retirement savings by contributing extra to your super from your before-tax salary
  • Save tax by paying less tax on income and less tax on your payments from your pension.

This strategy can give you the option to reduce your work hours without reducing your take-home income by supplementing your income with your super pension

Veyron can assist you with structuring a transition to retirement pension as part of your financial strategy.

Case Study

Tony, aged 55, earns $100,000 a year & has $300,000 in his superannuation, invested in a Balanced fund. Tony wants to retire at 65. By commencing a transition pension, Tony can supplement his income, whilst sacrificing a pre-tax amount of his income into superannuation. The result at age 65 is an additional $77,022 in his superannuation fund at age 65 (ie. $717,640 vs. $640,617).*

 

* Source: AMP TtR calculator