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.