Transition to retirement strategies

Using a transition to retirement strategy you can access your super while you are still working. Once you have reached your 'preservation age', you can access between 4-10 per cent of your super in the form of a transition to retirement pension.

What's your preservation age?

Your preservation age depends on the year you were born as you can see from the table below.

Date of birthPreservation age
Before July 1960 55
1 July 1960 – 30 June 196156
1 July 1961 – 30 June 196257
1 July 1962 – 30 June 196358
1 July 1963 – 30 June 1964 59
After 30 June 1964 60

Reduce your working hours

Using this strategy you can transition to retirement… literally. 

If you reduce your working hours then you can use the income from the transition to retirement pension to supplement your reduced salary.

Increase your super

If you are not ready to transition to retirement just yet, you can make salary sacrifice contributions to boost your super and then use the income from the transition to retirement pension to supplement your reduced salary.  Not only will this help your super grow but, because of the concessional tax rate that applies within super, you can also potentially reduce the amount of tax you pay.

For more information on transition to retirement strategies read our Transitioning to retirement guide or watch our Transition to retirement video.

Transition to retirement

To find out more about developing a transition to retirement strategy make an appointment with a Bridges financial planner.