What is a transition to retirement strategy?
Transition to retirement strategies are designed to give you greater flexibility as you move towards retirement. Once you reach what’s known as your ‘preservation age’ (aged between 56 and 60), you can access your super by drawing down a pre-retirement pension (a regular income stream drawn from your super savings).
A pre-retirement pension gives you the flexibility to drawdown an income and at the same time contribute to your super, eg through salary sacrifice, in a way that may be more tax effective than just relying on your salary alone. In most cases, you’ll pay less tax on your pension income than you would on the same amount of salary or wages.
The Federal Budget may see changes to this strategy.
To ensure you do not miss out, Insight Financial Partners are offering a one-on-one consultation with our specialist advisers to determine the effect these changes will have your retirement plans.
Bookings available until 29 April 2016.
Disclaimer: Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.
This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.