Did you know you could start receiving income from your superannuation while you’re still working?
Did you know you could start receiving income from your superannuation while you’re still working? No? Well maybe it’s time you considered a transition to retirement (TTR) strategy. When set up properly, TTR can benefit your retirement plans in a number of ways.
Once you reach preservation age, which is determined by your date of birth, you can be paid an income from your superannuation. Once you turn 60, the income is tax free. In addition, any investment earnings on the funds in your income stream TTR account will no longer be taxed, regardless of your age.
You can also continue working, so you keep making contributions to grow your superannuation. What’s more, if your financial position allows, you can salary sacrifice into your super and save tax at the same time, giving your super balance a boost.
And last, but by no means least, using the income stream TTR account might mean you’re able to reduce the hours you work, or even take up a hobby. Both of which may make the physical and emotional transition to retirement as seamless as the financial.
Nicholas Keats*, a Financial Planner who works with AustralianSuper members, said, “One of the great features of a transition to retirement strategy is its flexibility. You can ease into retirement by gradually working less, while building up your super balance and enjoying tax advantages. But there are lots of issues to consider, so it’s wise to discuss your options with your super fund and seek qualified financial advice before you decide what works best for you.”
Of course, to make the most of your superannuation and retirement income, you need to consider your own personal financial circumstances. This should be discussed with a financial planner to ensure the best outcome.
Find out more from AustralianSuper about how a TTR strategy could work for you.
* Nicholas Keats is an Authorised Representative of Industry Fund Services Limited ABN 54 007 016 195 AFSL 232514.
This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788. The views expressed are those of YourLifeChoices and not necessarily the views of AustralianSuper. The article contains general information and you should consider if it is right for you. For more information, please visit www.australiansuper.com/yournextlife