Transition to Retirement

Transitioning gradually into retirement can help you to bridge the gap between your working life and your retirement life.

You might want to slow down your working life, speed up your debt repayments or maximise your retirement position to ensure you are in the best possible place for when you choose to retire.

To assist you in reaching your pre-retirement goals, your superannuation may allow you to commence a Transition to Retirement Pension.

Transition to Retirement (TTR) Pensions

The TTR Pension allows you to continue working full time or part time whilst drawing a tax effective regular income from your super. Lump sum withdrawals are generally not allowed until you permanently retire or reach age 65.

Pension payments are tax efficient;

• If you are under age 60 any taxable component within your pension will be taxed, however a 15% tax rebate may apply to the taxable income.
• If you are over age 60, your pension payments are tax free.

Investment earnings within a TTR Pension are also tax-free regardless of your age.

Please note that mandatory minimum and maximum income drawdown limits apply to the TTR Pension.

A TTR Pension may allow you supplement your income if you decide to work part time, increase your salary sacrifice contributions or decrease debt in the lead up to your retirement.

For more information on Transition to Retirement, please contact a Health Super Financial Planner or attend a seminar in your local area.