Transition to Retirement (TTR) Pensions

Transition to Retirement Pensions were introduced to allow people over the age of 55 to access their super in the form of a pension without needing to retire.

The previous rules were seen to discriminate against people who might wish to go into semi retirement due to the need to satisfy a “condition of release” (in most cases retirement) in order to access their superannuation. This meant that in many cases there was no incentive to remain in part time employment even though this was in their best interest as well as in the best interest of the Australian economy.

TTR pensions do not have the same flexibility as full retirement pensions however they fill a need for those looking to supplement their income in a tax effective way.

The pensions also offer the opportunity for effective tax planning. As there is no need to retire to draw a tax effective TTR pension, it can be a highly tax effective strategy to combine a pension with a salary sacrifice strategy.

Unfortunately the reduction in maximum contribution levels has limited the value of this strategy.

Want to know more?  Our advisers Scott Keeley and Tiffany Cosh have helped many clients establish Transition To Retirement Pensions. 

Why not give them a call on (08) 8333 2488?  They can explain the complexities in language you will be sure to understand.  They also provide regular updates on topical issues.