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. 

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