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Transition into Retirement

Research shows that Australians are increasingly working to older ages, which makes a transition to retirement (TTR) strategy a key planning tool if you have reached age 60.

Under the transition to retirement rules, when you reach your preservation age, you may be able to reduce your working hours without reducing your income by gaining access to your retirement savings.

Some considerations:

  • Limits on pension rates - There is a minimum annual pension rate. However, there is also a maximum annual withdrawal of 10 per cent of your Transition to Retirement Pension account balance.
  • Reduced retirement savings - Drawing on your superannuation while still working means your retirement savings might grow more slowly.

 

References: Transition to retirement | Australian Taxation Office (ato.gov.au)

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