transition to retirement
Creating pre-retirement options
Transition to retirement is a financial strategy designed to access portions of your superannuation funds prior to retirement.
Recent legislation changes have reduced the effectiveness of Transition to Retirement Strategies, however, when correctly set-up, these can enable numerous advantages prior to reaching 65 years of age.
Firstly, you can ease into retirement by reducing your work hours whilst maintaining income levels via super pension payments.
Secondly, you can help to minimise taxation, increase contributions into super to build this faster, whilst maintain your current tack home income.
Important: Analysis of your individual situation is pertinent for this to work effectively as not everyone is suitable for this strategy and many super funds don’t allow it. Also, super pension payments can reduce your super overtime. That’s why a specialist in this area of advice is necessary.
At Oracle Advisory Group we specialise in analysing your situation and advising the best outcomes for you based on your specific needs, with the aim of making this investment area effective for your future needs.
Our complimentary initial strategy session will help you to understand the many opportunities and pitfalls that exist, and more importantly, how we can guide you to a place that suits your individual needs.
Contact us today and start your journey towards a greater freedom that you deserve and a partnership with people who care!
Frequently Asked Questions
Do all super funds allow TRIPs?
Not all super funds offer transition-to-retirement pensions and based on government legislation is always changing. Best idea is to ask your current super fund whether they offer this super option.
How much can you withdraw from a TRIP each year?
This is based on minimum and maximum pension payments legislated by the government and changes over time based on your age. The maximum prior to age 90 is 10% of fund balance per annum. See below table:
Age of pension account-holder
65 to 74
75 to 79
80 to 84
85 to 89
90 to 94
Aged 95 or older
Can you withdraw a lump sum?
General no you cannot unless you satisfy a condition of release such as reaching age 65 or retiring.