Here is our new Transition to Retirement Animation – what do you think?

Transition to Retirement is something that should be considered by all people over the age of 56. It can be used to increase the amount of money you can salary sacrifice. Some people use it to pay off inefficient debt.

If you are over Age 60 and commence a Transition to Retirement income stream, the money that you receive from the income stream will be tax free. If you commence the Transition to Retirement Income Stream at any age the earnings on the income stream will be tax free. This will mean that your returns will be higher, and thus you have more money to retire on. Also if you use the money to increase your salary sacrifice or self employed contributions to super, you will also have more to retire on.

The Transition to Retirement income stream (also called a Transition to Retirement Pension or TTR Income Stream) is funded from your superannuation. You can add to your super but you can’t add to your Transition to Retirement Income Stream once it has commenced (though this can be done by a re-contribution strategy).

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If you are considering doing a Transition to Retirement strategy, you should seek financial advice from a financial planner. This is because they can advise you so that you, for example, don’t exceed your concessional or non-concessional caps when adding to super. Also for some clients this strategy may not be suitable if they are under age 60 and high income earners.

A good adviser will provide you with a cash flow projection as part of the TTR process. This way you can see that you will still have the same amount of money to live on, and get some insight into what the future may hold for you.