Transition to Retirement

The years before you retire can be challenging. While you are probably looking forward to having more time to do the things you enjoy, you may not be ready to stop working. Many people are also concerned about whether or not they have saved enough super.

A Transition to Retirement (TTR or TRIS) strategy can assist an individual who has reached preservation* age to:

  • get access to your superannuation benefits in the form of a pension whilst still working and
  • to structure your income in such a way as to maximise your superannuation contributions prior to retirement whilst saving on personal income tax.

Whilst a Transition to Retirement strategy may not suit everyone who has reached preservation age, most individuals stand to benefit to some degree by using this very effective strategy.

Accessing your Superannuation before you retire…

A recent change in the rules regarding accessing your superannuation benefits means that you now no longer have to be retired in order to receive benefits from your superannuation fund.

In the past, the rule required that you be over the age of 55 and permanently retired from the workforce.  This has now changed. As long as you have reached preservation age, you now have access in the form of a pension income to your superannuation benefits.

On the surface, this may not seem to be such a big deal. However, the benefits can be very attractive in a number of scenarios including….

  • Individuals who would like to put more into Superannuation but simply cannot afford to do so because they still have other ongoing financial commitments including mortgages, children’s education etc
  • Individuals who would like to reduce the number of hours worked whilst still maintaining an income that is closer to the one that they enjoyed when working full time.

LifeTime Financial Group has had extensive experience in providing personalised and tailored advice to those considering a Transition to Retirement.

Please do not hesitate to contact us for an obligation and cost free initial meeting to discuss your own personal circumstances. By the end of this meeting, we will have clearly established whether or not you will benefit from this strategy.

*Preservation age is the age at which an individual may access their Superannuation benefits. The preservation age is based on an individual’s date of birth. LifeTime Financial Group has prepared a Fact File on Transition to Retirement. This publication also includes information on the preservation age and how to work out your preservation age. You may view this publication here…

For more detailed information on Transition to Retirement and a free, no obligation quote (Usually costing $395 from major industry funds), please visit our specialised website on this matter. www.transition-to-retirement.com.au

Please see our simple example and explanation of how a Transition to Retirement pension strategy can help you boost your Superannuation