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If you're over 55, Transition to Retirement (TTR) allows you to continue working while accessing your super benefit. It gives you the flexibility to retire at your own pace.
TTR opens up a range of retirement options. Some members prefer to ease into retirement by working fewer hours, as they are not yet ready to retire full time. For some members the incentive is financial as TTR will allow them to continue to earn while accessing their super.
Members may be able to combine both reasons and cut back their working hours while accessing their super to top up their reduced salary.
For some members, the opportunity will exist to boost their super in the lead-up to full retirement by using Salary Sacrifice contribution strategies.
Need more information on TTR?
Download the Transition to Retirement fact sheet.
Or you can contact RBF now to discuss your Transition to Retirement.
To invite an RBF speaker to your workplace or conference email super@rbf.com.au
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Case Study:
Jeff is 60 and enjoys his job teaching children with disabilities.
'My job is so rewarding. The children are great! It's fantastic to see them grow and learn in an environment that's supportive and can offer them the resources they need'.
Since Jeff reached retirement age, people started asking him when he was going to retire.
'The thought of retirement for me is very positive.
'I'm thinking of working part time. I find it hard to keep up with the kids on a full-time basis. But, I still enjoy my job so much that I'm not ready to give it up completely. After talking with RBF, I found out I can use Transition to Retirement (TTR) to subsidise my income when I cut back my work hours'.
Jeff's RBF Investment Account balance is $200,000. He can access up to $20,000 each year with a TTR Allocated Pension. He'll receive this money tax-free because he's over age 60. Normally, Jeff would have to earn $28,570 to receive $20,000 after tax.
Because Jeff can supplement his lost salary with income from his TTR Allocated pension, his fortnightly income and lifestyle will remain unchanged.
As Jeff is paying income tax at the 30% marginal tax rate, he has already switched to using Salary Sacrifice for his contributions to super. This contribution method works particularly well for members using TTR over age 60.
For more details read the Transition to Retirement fact sheet.
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