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Ready to work less? A transition to retirement strategy could be just what you need.

Making the leap from full-time work to full-time retirement can be a tricky change. Semi-retirement is an increasingly popular way to avoid this lifestyle shock and ease into this new phase. It gives you more time to do the things you enjoy while also keeping the mental and social benefits of work.

One downside of semi-retirement can be the reduction in income. However, there is a solution, a transition to retirement strategy enables you to work less but maintain your current income and lifestyle by drawing on some of your super savings. It could be your way to have it all: a better work/life balance and stable finances

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.  


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.



Thinking about retiring?

As a SASS deferred member, knowing your options is key to making sure you have the money to fund the lifestyle you want when you retire.

Attend a webinar

Join our experienced superannuation experts as they break down superannuation and finances into easy-to-understand topics through live webinars.

Book an appointment

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.

1SASS Wise Edition 9

2KPMG When will I retire  23 February 2023

3Smart Co The future of global retirement 2023

4Australian Bureau of Statistics 8 May 2020 Retirement, and retirement intentions Australia

5KPMG When will I retire  23 February 2023

6 Higher Education Statistics 2021

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.

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