Reduce your working hours and access your super as additional income when you reach your preservation age.
Retirement is changing. With more of us choosing to extend our working lives, the reality of ‘downing tools’ at retirement age is less and less the norm.
The good news is, once you reach preservation age, you can tap into your super for extra income and take advantage of some tax benefits, just by setting up a flexible Transition to Retirement Income Stream (TRIS). It’s a great way to work less, on the same income, or work the same hours and use your extra regular income to boost your super before you even think of retiring.
Choose what to do with your extra income
A Transition to Retirement Income Stream can be a great way to:
- Boost your super, pay less tax and work the same hours
If you plan to keep working, a TRIS can be a great way to top up super and maintain your take-home pay. And once you reach age 60, your TRIS payments are tax-free.
- Work less, without reducing your income
Take away the worry of a salary cut when reducing your working hours by supplementing your income with a TRIS
- Pay off debt before you retire
Keep working and clear your remaining debt with the cash injection of a TRIS.
Start a Transition to Retirement Income Stream in a few simple steps
Setting up a TRIS account is simple. Simply link it to your super account and decide how much of your super balance you want to transfer across.
Already a member of Aware Super?
Not a member of Aware Super?
Things to keep in mind
To work out if a Transition to Retirement Income Stream is right for you, you need to know the rules about its use. These include:
- You generally can’t make lump sum withdrawals.
- You must receive between 2% and 10% of your TRIS balance each year^1.
- Drawing from your super now could mean you have a lower balance when you fully retire.
- While you’re under 60 years of age, your TRIS payments will be subject to tax – any taxable component will be taxed at your marginal tax rate less a 15% offset. From 60, you don’t pay any tax on income payments from your super.
- Earnings in your TRIS receive the same concessional tax treatment as your super – earnings are taxed at up to 15%.
Moving on from full-time work is a big decision. Don’t go it alone.
While easing into life after work can be exciting, there’s a lot to consider. Maximising any Centrelink entitlements, asset allocation, income streams, estate planning, tax breaks, lump sums: there’s a lot to consider. That’s why we provide different levels of support and advice to help you make the best decisions for your circumstances.
Simple retirement advice
We know retirement planning can be complex. As an Aware Super member, you have access to simple financial advice about your super, retirement income stream options and insurance with us.
Advice for more complex matters
When planning ahead, financial advice can make a big difference. For a cost, one of our fully qualified financial planners can help with advice that delves into areas like age pension and other government entitlements, investments outside super, maximising tax breaks and establishing a transition to retirement strategy.^2
What to do when you’re ready to fully retire
Once you’ve reached your preservation age and permanently retire, you’ll be eligible to open a Retirement Income Stream. This lets you tap into more flexible income payment options, like lump-sum withdrawals, and you can benefit from tax-free investment returns.
Learn more about a Retirement Income StreamPreservation age
Your preservation age is when you can first access your super. It changes, depending on your date of birth and is currently 57 years of age.
| Date of birth | Preservation age (years) | Earliest Access |
|---|---|---|
| Before 1 July 1960 | 55 | Eligible now |
| 1 July 1960 – 30 June 1961 | 56 | Eligible now |
| 1 July 1961 – 30 June 1962 | 57 | Eligible now |
| 1 July 1962 – 30 June 1963 | 58 | May be eligible |
| 1 July 1963 – 30 June 1964 | 59 | 1 July 2022 |
| After 30 June 1964 | 60 | 1 July 2024 |
* This Product Disclosure Statements retains the First State Super branding and trustee name. For more information on the change of our brand and trustee name to Aware Super Pty Ltd see here.
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As a result of the COVID-19 crisis, the Government has reduced the minimum annual payment required for account-based pensions by 50% in the 2019–20 and the 2020–21 financial years. ↩
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The total annual fee (inclusive of admin and investment fees) for our Accumulation Fund Growth option is 1.10% p.a., the industry average is 1.43% p.a., Chant West Super Fund Fee Survey, March 2020, based on a $50,000 balance in a Growth option. ↩
