We see an opportunity for all clients, particularly those over 55 to get advice in relation to transition to retirement strategies.
In many cases these are both tax effective and also boost superannuation amounts in retirement with little to no change in your net income.
We recommend all of our clients seek further advice from us in relation to the tax implications of this, or discuss with their financial planner or we can recommend one.
The following article discusses transition to retirement in further detail. There may be tax changes in this area in the near future, so it would be advisable to take advantage of this before any legislative changes occur.
Access your super the smart tax way:
- If you’ve reached your super ‘preservation age’ (currently 55 but rising to 60), you can take some of your existing super as an income stream to help make your transition to retirement a smooth one. This is called a transition to retirement (TtR) strategy. And it can be very tax effective.
- You can continue to work and contribute towards your super using tax-effective salary sacrifice contributions.
- You can top up your income with a tax-effective income stream from your retirement account (between 4% and up to 10% of the account balance can be drawn each year).
- And there’s even a way to ‘refresh’ your TtR strategy every year for potentially even more tax benefits.
Any advice contained in this document is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Before making any decision, you should consider the appropriateness of the advice with regard to those matters and seek independent taxation and financial advice.