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Transitioning to retirement

These days the line between work and retirement has blurred. Many people look for some flexibility, changing their work patterns prior to retiring and then working part-time into retirement. And the Government has made this easier by offering potential tax advantages.

Transition to retirement pensions

Under the Government’s transition to retirement rules, if you have reached your preservation age, you may be able to reduce your working hours without reducing your income.

This is involves drawing a pension from your super savings while you are still working to top up your part-time income.

This is known as a transition to retirement pension and can also be a very tax-effective strategy leading up to retirement.

Alternatively, you may continue to work the same hours and contribute as much as possible to super from your pre-tax salary. This strategy can boost your super while reducing your overall tax. 

What’s next?

Perpetual or Perpetual Group means Perpetual Limited, ABN 86 000 431 827, and its subsidiaries. Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This information has been prepared by Perpetual and contains information contributed by third parties. It contains general information and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional financial, tax and/or legal advice. The information is believed to be accurate at the time of compilation and is provided by Perpetual in good faith. However, the statements including assumptions and conclusions are not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.