As you approach retirement, you may want to consider a Transition to Retirement (TTR) strategy to help make the most of your current investments and take advantage of tax breaks that might be available. Having a solid financial plan and a super fund that allows you to hold a savings and a pension account can help to ensure you reach your financial goals.
Although there is no legal age at which you must or can retire, there are rules around when you can access your super. A TTR strategy means you draw an income from your pension account and add more to your super savings account through your salary or income as you continue to work. Depending on what you want, you can use this strategy to:
1. Reduce your working hours and maintain your income; or
2. Continue working (full or part-time) and boost your super balance with salary sacrifice contributions.
Find out more about BT Super for Life – Transition to Retirement account here:
Disclaimer: This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.
Any taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice.
Superannuation is a long-term investment. The Government has placed restrictions on when you can access your preserved benefits. The Government has set caps on the amount of money you can add to superannuation each year on a concessionally taxed basis. In addition, the Government has set a non-concessional contributions cap. For more detail, speak with a financial adviser or visit the ATO website.