Goals
- Reduce working hours for a better work-life balance.
- Maintain a similar take-home income.
- Continue to grow super before retirement.
Financial Impact
The table below shows how you can reduce work hours without reducing your take home pay when you have a Retirement Transition account.
| Annual salary (before tax) | Annual tax^ (year 1) | Annual Retirement transition income | Annual take home pay | Salary sacrifice contribution (year 1) | Employer super contributions | |
|---|---|---|---|---|---|---|
| Working 5 days a week no Retirement Transition account | $100,000 | $24,600 | $0 | $77,200 | $0 | $12,000 |
| Working 4 days a week no Retirement Transition account | $80,000 | $17,800 | $0 | $63,600 | $0 | $9,600 |
| Working 4 days a week with a Retirement Transition account | $80,000 | $14,300 | $28,600 | $77,200 | $20,400 (up to the cap) | $9,600 |
^ This amount includes income tax and tax paid from super.
Key benefits
- Improved work / life balance: working 4 days instead of 5.
- Maintains similar take‑home pay using a Retirement Transition account.
- Continues contributing to super.
- Salary sacrifice reduces Anne’s taxable income.
- Enjoys lifestyle benefits now, with only a small impact on retirement income.
- Numbers are presented in today's dollars, deflated using Average Weekly Ordinary Time Earnings (AWOTE) at 3.7% p.a.
- Projected retirement balances are rounded to the nearest $1,000 and incomes are rounded to the nearest $100.
- Assumes Anne is single and a homeowner with $50,000 of personal assets outside of superannuation and no other assets and loans.
- Based on SG of 12%.
- Based on current legislated tax rates as at 1 July 2025 and incorporating future legislated tax changes up to financial year 2027/28.
- Fixed fee is assumed to be $52 p.a., increasing in line with assumed wage inflation of 3.7% p.a.
- Asset based administration fee is assumed to be 0.15% in accumulation and 0.17% in pension.
- Investment returns are based on the Aware Super MySuper Life Cycle option, assumed to be CPI + 4% until age 55, reducing from CPI + 4% to CPI + 2.75% between the ages 55-65 (inclusive) and CPI + 2.75% from age 65 onwards.
- Pension returns are based on the Aware Super Conservative Balanced option assumed to be CPI + 3.45%.
- Investment returns are assumed to be net of tax.
- CPI is assumed to be 2.5% p.a.
- This example is for illustrative purposes only and is not intended to provide a guarantee on outcome. It is a broad illustration of the steps a member could take, but the actions appropriate for an individual will vary depending on their personal circumstances. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change. Investment return assumptions are for illustrative purposes only and for simplicity assume an average rate of return each year throughout the investment period. Actual returns year on year may vary materially and can be negative as well. If investment returns/inflation are higher/lower, final balances will differ. Consider if this is right for you and read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Aware.
Where to next?
* Withdrawing money from super to maintain 5 days a week of post-tax salary.
[AD1] Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
[AD2] Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee.
Past performance is not an indicator of future performance.