Transition to Retirement strategies are designed to help you maximise your pre-retirement savings as you move from work into retirement.
From 55, you can rollover your super into a Vision Non-Commutable Allocated Pension (also known as a Transition to Retirement Allocated Pension) and nominate a regular pension income to receive from it; anywhere from 4-10% of your account balance yearly. This lets you choose from several transition to retirement strategies:
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Option 1: Work fewer hours and use your super to top up your reduced pay
If you’re transitioning to retirement and want to work fewer hours a week, you can draw on your Vision Non-Commutable Allocated Pension to top up your income. |
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Option 2: Work changeable hours and draw on your super’s benefits
If you’re transitioning to retirement and want to work flexible hours, you can draw on your Vision Non-Commutable Allocated Pension on a needs basis, while accessing the benefits of super. |
Option 3: Maintain your work hours and salary sacrifice to super-size your super
Salary sacrificing into your super turns more of your tax into money in your super. This could also drop you into a lower income tax bracket, so you pay less tax on your take-home pay. You can then draw on your Vision Non-Commutable Allocated Pension to top up your income. |
Once you reach 60 and retire or reach 65, your Vision Non-Commutable Allocated Pension automatically converts to a regular Vision Allocated Pension and you can take up to 100% of your account balance, tax-free.
Transition to Retirement benefits:
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Wind back your working hours while still growing your retirement nest egg
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Keep working full time and super-size your retirement nest egg
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Minimise tax
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Best of all, you don't have to significantly reduce your take-home pay
Need a hand? Give us a call on (03) 9911 3222 (regional callers 1300 300 820)
