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A smart way to make semi-retirement a reality

If you have reached an age where you can access your SASS deferred benefit (generally 58), as well as your personal preservation age, opening a transition to retirement account will allow you to access a portion of your super as an income stream while you’re still working. 

This can help make up for the income lost by switching to part-time work.  The income you take is tax free when you’re over 60. When you’re under 60 the taxable component of the income is taxed but a pension tax offset of 15% will apply.    

In short, you can work less, but won’t need to live on less, especially if you continue to top up your super savings through salary sacrifice or personal deductible contributions. By ensuring your super stays invested, you can relax knowing the potential for ongoing investment returns will help you enjoy a higher income when you’re fully retired. 

As well as choosing how much income you wish to receive, you can also choose how often you’ll receive your income payments. But be a   ware that the Government applies annual minimum and maximum income payment limits with a transition to retirement income account, so you can’t withdraw more than 10% of your account balance each year. 

The Aware Super Retirement Income product offers both a transition to retirement option (Retirement Transition), and a retirement income stream option (Retirement Income). At Aware Super, if you have a Retirement Transition account, when you turn 65, your account     will automatically be converted into a Retirement Income account . When you move to a Retirement Income account, both your income payments and investment returns become tax free.  account, both your income payments and investment returns become tax free.  

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Interested in a transition to retirement strategy?

While a transition to retirement account is not available within SASS, you can use your SASS deferred benefit to start an income stream account with another super fund, such as Aware Super Retirement Income, which offers a Retirement Transition option.

If you need help deciding how to manage your SASS benefit, an Aware Super financial planner  can review your circumstances, talk you through each option, and help you make more informed decisions.

 

 

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At Aware Super, we are experienced in your State Super scheme and know the ins and outs of planning for a successful retirement. 

To help you make better decisions for your retirement, book today for a no cost, obligation free appointment with an Aware Super financial planner.


The information contained in this article is given in good faith and has been derived from sources believed to be reliable and accurate. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by Aware Super Pty Ltd or its employees for any loss or damage arising from reliance on the information provided.

Personal advice requires the provider to act in the client’s best interests and take into account the client’s circumstances. These rules do not apply to general advice. This communication contains general advice only and no personal advice. We have not taken into consideration any of your objectives, financial situation or needs or any information we hold about you when providing this general advice. Further this communication does not contain, and should not be read as containing, any recommendations to you in relation to your product. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs, and seek appropriate professional advice if you think you need it. Contact us to make an appointment to see one of our representatives. You should also read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Aware Super. These documents are available on our website at Product Disclosure Statements (PDS) and Target Market Determination (TMD) | Aware Super or call us and we’ll send you a copy. Issued by Aware Super Pty Ltd ABN 11 118 202 672, AFSL 293340, the trustee of Aware Super ABN 53 226 460 365. Financial planning services are provided by our wholly owned financial planning business Aware Financial Services Australia Limited, ABN 86 003 742 756, AFSL No. 238430. You should read their Financial Services Guide before making a decision. View the general advice warning and conditions of use for this website.