If you have reached the age of 55, you can draw on your super before you actually retire permanently from the workforce and use it for any one of these specific purposes:
- ease into retirement by reducing working hours without reducing your net income
- boost your retirement savings without impacting your net income if you are still working full time.
A transition to retirement (TTR) strategy enables you to access your super as regular income through a transition to retirement pension, even if you are still working. This pension income generally attracts less tax (and is tax-free after age 60) than income through work, so can be used to supplement or even replace your income. It allows you to work fewer hours and still have the same income to play with.
A transition to retirement pension can be even more powerful if combined with salary sacrifice while you are still working. Because your salary sacrifice contributions are taxed at a lesser rate when they go into your super, you can direct your work income into your super and replace it with a transition to retirement pension
Listen to Eva's Story on ANZ Digital TV to find out how transition to retirement has allowed her to work few hours, while continue to add to her retirement savings.
It is recommended that you speak to an ANZ Financial Planner to determine if this strategy is right for you.
Be better off
ANZ Financial Planners are dedicated to providing you with information so that you can make the decision that is right for you.
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