Will ‘Transition to Retirement’ work for you?

 

 

 

 

 

 

 

 

 

Gone are the days when Adelaide employees can only access superannuation after retirement or 65 years of age.

Now, it’s possible to access some of your super while you’re still working. Even as you reduce your work hours you can still maintain your standard of living with a ‘transition to retirement’ strategy.

 

Fill in the form to claim your FREE Adelaide strategy session with HSW Financial Advisers.

 

mathew"I love helping people grow wealth & protect their family. Time and again I’ve seen how our advice changes lives for the better."

 

Mathew Hill | Financial Adviser

Transition to retirement Adelaide: Top things you need to know.

  • It can boost your superannuation savings

 

  • Use money you are currently paying in tax to increase your retirement lump sum

 

  • It is an effective strategy to ease into retirement

 

  • You can reduce your working hours and   still maintain your income
  • You will pay less tax on your PAYE income

 

  • Not all super funds allow transition to retirement

 

  • Self managed super funds or SMSFs may not be eligible, except those with amendments to the   trust deed or segregation

 

  • You should be of minimum preservation age

 

Transition to retirement strategy

How does ‘transition to retirement’ work?

Transition to retirement is a popular choice for Adelaide pre-retirees who want to maximise their superannuation savings during their pre-retirement years. A successful transition to retirement strategy can substantially boost your super fund balance and reduce your tax burden, improving your lifestyle in retirement.

 

It can also help you maintain your lifestyle while you reduce your work hours and wind down towards retirement. A transition to retirement is an effective strategy for Adelaide employees to reduce  working hours without cutting your income. There are many ways of implementing transition to retirement. The most common is through salary sacrificing pre-tax PAYE income into your superannuation savings account and at the same time drawing from your fund’s pension account.

 

Transition to retirement is often complex. In order to balance your current income needs with the optimal tax outcome, you should seek expert advice on what will work best for you.

 

 

 

 

Once you’ve reached your preservation age, you can be a candidate for transition to retirement. In most cases if you are 56 years or older, now is your chance to fully maximise this opportunity.

 

Why the hurry? Although you may be planning to work towards your retirement goals for many years yet - to pension age, or even beyond - the reality is that up to 26 per cent of men over 45 years (and 21 per cent of women) are forced to retire early due to accident, illness or disability [i]. How would this affect you? You might think you have 10 years or more of work left, but it’s possible you won’t. So it may be prudent to capitalise on your ‘Transition to Retirement’ now, while you can.

 

Turning 56 soon? Be prepared now.

 

Planning for your retirement is crucial especially if you are nearing your transition years. The earlier you talk to a qualified Adelaide financial adviser about your retirement goals and set a strategic plan in place to achieve them, the more likely you will achieve the lifestyle you deserve in retirement.

 

Even if you’re not yet 56, it is important that you have your current financial status assessed by an expert to see potential problems that you need to give attention to (such as debts) before you finally transition to retirement.