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, this strategy can provide 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, whilst maintaining your current income.

Important: Analysis of your individual situation is essential for this to  strategy to be effective as this strategy is not suitable in all circumstances. Additionally many super funds will not permit this strategy.

At Oracle Advisory Group we specialise in analysing your situation and advising the best outcomes for you based on your specific needs.

Our complimentary initial meeting 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 transition-to-retirement pensions?

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 transition-to-retirement pension 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

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%

Can you withdraw a lump sum?

General no you cannot unless you satisfy a condition of release such as reaching age 65 or retiring.

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