If you have reached your age 55, you can now draw on your super before you actually retire permanently from the workforce and use it for any one of these specific purposes:
ease into retirement by reducing working hours without reducing your net income
boost your retirement savings without impacting your net income if you are still working full time.
A Transition to Retirement (TTR) strategy enables you to access your super as a regular income through a transition to retirement pension, even if you are still working. This pension income generally attracts less tax (and is tax free after age 60) than income through work, so can be used to supplement or even replace your income. It allows you to work less hours and still have the same income to play with.
A transition to retirement pension can be even more powerful if combined with salary sacrifice whilst you are still working. Because your salary sacrifice contributions are taxed at a lesser rate when they go into your super, you can direct your work income into your super and replace it with a transition to retirement pension
To find out how out how salary sacrificing may benefit you as part of a Transition to Retirement strategy, try the calculator below.
It is recommended that you speak to an ANZ Financial Planner to determine if this strategy is right for you.
