TRANSITION TO RETIREMENT

Transition to Retirement (TTR) lets you access some of your super before you permanently retire. Depending on your age, total assessable income and income needs, a TTR strategy can help you:

• Save thousands of tax dollars over the long term

• Lower your income tax liability

• Keep your savings free from investment tax

• Draw a tax-free income stream

• Access some of your super while you are working

Your Vision Super financial planner can create a TTR strategy that takes advantage of super’s complex rules to get the best result for you. This service is available to members nearing retirement at no extra cost.

Case Study

Katherine is looking to fund a retirement income from her super. Her parents are still healthy and active in their 80s, so Katherine has planned for a timeframe 30 years beyond her retirement. As a teacher, she enjoys her work and rewarding social lifestyle. She wants to still be able to afford the things she loves in retirement.

When Katherine turns 55, she uses a Transition to Retirement (TTR) to maximise her savings. She salary sacrifices into super to reduce her assessable income for tax purposes. To supplement her loss of income, she starts a Non-commutable Allocated Pension to draw an income stream from her super.

Over the next 10 years, Katherine’s super continues to grow even as she decides to work hours of her own choosing. By the time she decides to stop work permanently, TTR will have made a huge difference to the quality of life she can enjoy.

Under this arrangement, Katherine’s income remains the same but she is able to grow her super because she salary sacrifices more into super than she draws from her income stream. Also, using a Non-commutable Allocated Pension means Kathryn pays no tax on any investment earnings.

Please note: This Transition to Retirement strategy won’t suit everyone. Our case study is only a general example to show the potential benefits of a TTR.

For more information about Transition to Retirement, please call our friendly Member Services team on (03) 9911 3222 (regional callers 1300 300 820) or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .