Maximise retirement income
When you decide to scale back your working life, an alternative income stream will be the first thing on your financial agenda. The sooner you start laying the foundation for alternative income streams, the more options you will have when you’re ready to embrace a change of pace.
There are a number of Transition to Retirement (TtR) measures available which can help to maximise your retirement income to ensure you’re financially stable for retirement and beyond. The prerequisite for utilising the below TtR strategies is that you must have reached your preservation age.
Good to know
Transition to Retirement Strategies
Salary Sacrifice Contributions
Salary Sacrificing is an arrangement in which an employee agrees to have their wages cut, in exchange for additional employer superannuation contributions. The main advantage of choosing this method is that it’s a tax effective way to increase superannuation assets, as they are made from your pre-tax salary. This therefore allows a greater proportion of every dollar sacrificed to make its way into your superannuation fund, preparing you for a more comfortable retirement.
Converting superannuation to a TtR Pension
A TtR Pension is a type of income stream which allows people who have reached preservation age to access their superannuation while still working. Converting your superannuation to a TtR pension allows you to transfer a significant portion of your assets to the tax-free pension environment.
Blended income streams
Those who cannot fully self-fund their retirement may use a combination of their super and the Government Age Pension to meet their living needs.