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 birth||Preservation age|
|Before July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1961 – 30 June 1962||57|
|1 July 1962 – 30 June 1963||58|
|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.
To find out more about developing a transition to retirement strategy make an appointment with a Bridges financial planner.