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Transition to Retirement

Transition to Retirement A simple reorganisation of your finances could save you thousands.

Putting a Transition to Retirement strategy in place could really put you ahead. If you are between age 55 and 75, the benefits can include:

  • ease into retirement by reducing working hours without reducing your net income
  • boost your retirement savings without impacting your net income if you are still working full time

For those close to retirement, those benefits can add up to a better lifestyle now and a better super balance at retirement.

How it works

From preservation age (55 for many people), you are able to access your super as a regular income through a transition to retirement pension, even if you are still working. This pension income generally attracts less tax (and is tax free after age 60) than income through work, so can be used to supplement or even replace your income. It allows you to work less hours and still have the same income to play with.

A transition to retirement pension can be even more powerful if combined with salary sacrifice whilst you are still working. Because your salary sacrifice contributions are taxed at a lesser rate when they go into your super, you can direct your work income into your super and replace it with a transition to retirement pension.

This could mean being substantially better off in retirement without compromising your lifestyle now.

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Explore the possible benefits of this strategy
 
Making the right choices is crucial

You need to set up your super and salary arrangement in exactly the right way to make the most of a transition to retirement strategy. And of course everyone benefits differently depending on their personal financial circumstances.

Be better off in retirement, make an appointment to speak to an ANZ Financial Planner to find the best balance for your situation.

To find out more, check out this case study (PDF, 282kb).

Tip: If you are over age 65, you may also qualify for government benefits like the Age Pension or the Seniors Health Card.