Crafting the retirement lifestyle, you’ve earned demands thoughtful preparation. Many people are unaware that upon reaching the required preservation age they can access a portion of their superannuation without having to leave their employment via a tailored Transition to Retirement strategy (TTR).
Navigating the path to retirement
A TTR strategy allows you to enjoy flexible working while simultaneously boosting your superannuation. The approach ensures your income remains steady, all the while capitalising on potential tax advantages.
TTR eligibility
Individuals who have reached their preservation age (which is currently between 55 and 60, depending on the birth year) and are still working can consider a TTR strategy. It’s essential to meet preservation age criteria and have an accumulation superannuation account.
TTR benefits
In addition to being able to reduce your working hours while maintaining a steady income, a TTR strategy can have significant tax advantages as it can allow you to be taxed at a lower marginal rate.
A strategy many adopt is to receive part of their income at a lower tax rate, while salary sacrificing part of their income to their superannuation fund. The salary sacrificed contribution is invested in pre-tax or gross dollars, while the only tax payable is contributions tax, currently 15 per cent paid by the super fund.
Let Growth Financial Planners design your TTR strategy
A TTR strategy that works for one person might not work for another. Seeking professional advice is crucial to making informed decisions about your retirement strategy. At Growth Financial Planners, we can help tailor your TTR strategy to your individual circumstances, ensuring it aligns with your retirement goals and complies with all regulations.