Transition to Retirement
This is my first ever blog post of any kind so I thought to simply talk about what I think is relevant and important. I feel that in this point in time the most relevant thing I can think of is the transition to retirement.
If you are over 55 as I am, maybe you should be looking at a “Transition to retirement pension” as part of your future planning. This strategy may apply to your circumstances where you may be considering dropping some hours or working only part time. You still get regular payments into your super by employers or by salary sacrificing and after tax contributions.
Here is a short list of benefits you will see using this strategy
1. Supplementation of take home pay, should you decide to reduce hours heading into retirement;
2. Tax free returns on pension whilst it remains invested within your pension;
3. Salary sacrifice saving a 15% rebate is available on the taxable component of the pension income;
You are able to convert all or just some of your current superannuation funds to a Transition to Retirement account. When considering this, keep in mind that you can only draw a maximum of 10% of the account each financial year.
If you feel you may wish to look into this further, please leave me some feedback on Facebook, send me an email or give me a call.