Retirement
I look to the future because that's where I'm spending the rest of my life.
Transition to retirement
Transition to retirement offers you even more options for your retirement future. This strategy enables you to make the most of your super in the lead up to retirement.
There are two main ways to use this strategy, depending on what you'd like to do:
Wealth creation
Transition to retirement is an effective way to boost your super savings while you're still at work. If you are 55 or over, this option involves salary sacrificing part of your regular income into super.
By doing this you only pay 15% tax rather than your marginal tax rate. You can then supplement your current income by drawing money from your super savings in the form of a super pension.
Lifestyle
Not quite ready to retire but like to reduce your hours and not your income? Transition to retirement allows you to maintain your income through your super and, if your employer agrees, cut back your hours to sample retirement. This means more time for you to spend doing what you'd like to do.
This option allows you to test drive retirement by reducing your hours (there are no set hours you have to work) and using your super in the form of a pension to maintain your income.
It gives you freedom and flexibility before you take the plunge into retirement.
