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Retire your way

Looking to ease into retirement or boost your super before you do? A transition to retirement pension could be the answer.

Work less, earn the same
If you’ve reached your preservation age and are still working, a transition to retirement pension (TTR) will let you reduce your work hours without taking a pay cut. By giving access to your super as an income stream, it can make up the difference between a full-time and part-time salary.

Grow your retirement savings
A TTR can also be used to boost your retirement savings, allowing you to make salary sacrifice contributions into your super. These contributions are taxed at just 15%, which is likely to be lower than your marginal tax rate.

Man on the phoneMichael, 60, wants to reduce his work hours as he eases into retirement. However, he’s concerned about reducing his pay. He has a large super balance, which he can’t  access until retirement.

By moving some of his super to a Club Plus Super TTR Pension, Michael can receive some of his super as a pension. With careful planning, Michael can get regular payments from a TTR Pension that, when added to his pay, equals what he would have earned if he remained in full-time employment.

Using a TTR Pension has allowed Michael to reduce his workload without taking a pay cut. As Michael is still employed, he will continue to receive his employer’s Superannuation Guarantee (SG) contributions, based on his new reduced hours.

 

Is a TTR is right for you?
To find out if a TTR is right for you, email advice@clubplussuper.com.au for an obligation-free appointment with a financial planner.

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