The benefits of transition to retirement
by Wealth Know How in Retirement
The essential benefit of the TTR rules is that you don’t have to retire to withdraw your super benefits. You can work part-time or full-time – or even casually – while getting an income stream from your super.
A TTR pension can significantly boost your super savings, while giving you some access to your super benefit currently from age 55. If that sounds like a contradiction in terms, the beauty of the strategy is that you can reduce your work hours and supplement your income from your super through a regular income stream from a pension account, or maintain your work hours, get access to a pension income stream and salary-sacrifice more into your super.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 07 Mar 15
-
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healt...
Duration 02:31
-
-
The essential benefit of the TTR rules is that you don’t have to retire to withdraw your super benefits. You can work part-time or full-time – or even casually – while getting an income stream from your super.
A TTR pension can significantly boost your super savings, while giving you some access to your super benefit currently from age 55. If that sounds like a contradiction in terms, the beauty of the strategy is that you can reduce your work hours and supplement your income from your super through a regular income stream from a pension account, or maintain your work hours, get access to a pension income stream and salary-sacrifice more into your super.Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
A TTR pension can significantly boost your super savings, while giving you some access to your super benefit currently from age 55. If that sounds like a contradiction in terms, the beauty of the strategy is that you can reduce your work hours and supplement your income from your super through a regular income stream from a pension account, or maintain your work hours, get access to a pension income stream and salary-sacrifice more into your super.
Your super balance may keep growing as your employer continues to make contributions into your super account. And salary-sacrificing some of your pre-tax income into your super may further boost your super savings.
Also, both employer contributions and salary-sacrificed contributions are taxed at a low rate when they go into super – this may be lower than your marginal tax rate.
Moreover, investment returns on a super pension account are not taxed, and currently when you turn 60, you won't pay any tax on your pension income. Even if you are under age 60 you should get a tax rebate on your pension income.
So if you want to reduce your work hours as a way of easing into retirement, a transition to retirement pension can be used to supplement your employment income if your reduced income is not quite enough to maintain your current lifestyle.