Transition To Retirement


Accessing super early

A Transition to Retirement strategy allows people who are still in the workforce to access their super (in the form of an income stream) once they reach their preservation age.

This strategy provides an opportunity to increase retirement savings before ceasing work. If you are aged between 55 and 65, accessing your super via transition to retirement pension provides the following options:

  • Boost your retirement savings by contributing to super through salary sacrifice
  • Save tax by paying less tax on income and less tax on super savings. In pension phase- enjoy a 0% tax rate on all income and capital gains earned by your current super balance.
  • The option to gradually reduce your work hours without reducing your take-home income by ‘topping up’ your income with a super pension

Sterling Planners can assist you with structuring a transition to retirement pension as part of your financial strategy.

Case Study
Gary, aged 55, earns $110,000 a year. Wants to retire at 65 and has a current superannuation balance of $450,000. By commencing a transition pension, Gary can supplement his income, whilst sacrificing a substantial pre-tax amount of his income into superannuation. The result is an additional $62,000 in his superannuation fund at age 65.

Below is a video of Sue Gleave, a client with Sterling Planners for over 10 years , speaking about her transition to retirement experience.