Need to know your options?
If you’ve reached the age of 56 and you’re still working, you may want to take advantage of a Transition to Retirement (TTR) income stream, which essentially allows you to ease into retirement without having to stop work.
Receiving a TTR income stream allows you to cut down on your working hours and supplement your income with your super. This means even though you’re working less, your take-home pay remains similar.
Once you reach age 60, the payment you recieve from your TTR income stream, is tax-free. There may be more tax savings to be had if you were to also make extra contributions into your super account (before-tax). This means even though you’re taking money out of super, you’re putting more back in so your retirement nest egg won’t lose out.
The effectiveness of TTR income stream really depends on your own circumstances. If you’re unsure as to whether this would work for you, our team of financials advisers can help.
Important changes to TTR: 1 July 2017
From 1 July 2017, the investment return earned from your TTR will no longer be tax-free. Instead it will be taxed at 15% (in line with super generally).