Transition to retirement

Ease into retirement with pension payments from preservation age onwards

With working lives extended more and more, hanging up your coat at traditional retirement age is becoming less standard. Fortunately, you can access a portion of your super for extra income and avail of some tax benefits when you reach preservation age with a Transition to Retirement Income Stream (TRIS).

A clever way to work less hours while maintaining your income or work the same amount while boosting your super, this strategy enables you to ease into retirement the way you wish – provided it’s set up properly.

Our financial planners in Newcastle, Sydney, Melbourne, Brisbane, Central Coast and Wagga Wagga understand that transition to retirement strategies are complex. As our valued client, you will gain access to trusted financial advice regarding your super and retirement income stream options.

Know your options with expert transition to retirement advice

Transition to retirement is a financial strategy designed to access portions of your superannuation funds prior to retirement. While recent legislation changes have reduced the effectiveness of TRISs, they can provide significant advantages when correctly set up.

Transition to retirement benefits

  • Maintain your current income while saving on tax and increasing super contributions to build it faster.
  • Work fewer hours without reducing your income or compromising your lifestyle by supplementing your pay with a TRIS.
  • Repay your debts with your TRIS before you enter retirement.
  • Enjoy pension payments without the tax if you’re over 60.

Of course, assessing your individual situation is essential, as a transition to retirement strategy is not suitable in all circumstances or permitted by many super funds.

At Oracle Advisory Group, we specialise in analysing your finances, advising on the most appropriate plan of action and implementing this strategy to meet your specific needs.

To learn more about devising a transition to retirement strategy for your distinct circumstances, book an appointment with one of our experienced financial advisors today.

Frequently Asked Questions

What is my preservation age?

Your preservation age depends on your date of birth. See the preservation age table below for more information.

Date of Birth Preservation age
Before June 1960 55
July 1 1960 – June 30 1961 56
July 1 1961 – June 30 1962 57
July 1 1962- June 30 1963 58
July 1 1963 – June 30 1964 59
After June 30 1964 60
How much super can I withdraw at preservation age?

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 Percentage factors
Under 65 4%
65 to 74 5%
75 to 79 6%
80 to 84 7%
85 to 89 9%
90 to 94 11%
Aged 95 or older 14%
Do all super funds allow transition-to-retirement pensions?

Not all super funds offer transition-to-retirement pensions, and the legislative requirements are changed often. Best to ask your current super fund whether they offer this super option.

Can I withdraw a lump sum?

Generally, no, you cannot withdraw a lump sum unless you satisfy a condition of release such as reaching age 65 or retiring.

Are TRIS payments subject to tax?

TRIS payments are subject to tax if you are under age 60. These payments will be taxed at your marginal tax rate (less a 15% offset).

Once you turn 60, your TRIS payments will not be subject to any tax.

Enquire today to see how Oracle can assist you!
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