Retirement transition strategies to augment super funds

​There is a provision under the Australian Government that enables a person to keep working while enjoying the superannuation benefits to an extent as well. This is precisely known as transition to retirement that gives an opportunity to the employee to add-on to the salary and the person can enhance the lifestyle to an extent. In fact, there are other benefits of this policy like tax saving feature as well as accelerating the super funds before retirement as well.

How to proceed further with transition to retirement?
This process, officially known as the ‘transition to retirement’ or TTR scheme pension consists of basically double components:

• An employee can continue working on a full time basis and increase the super funds.
• The employee can also go for reduction in the working hours so that the fall in the income can be softened to an extent.

There is another method of opting for the same that requires the person to go for salary sacrifice. Both these can be enjoyed by the employee once the age is within (55-60) years. After this, the person can easily go for this transfer to retirement scheme although only 4% to 10% of the super funds can be drawn annually and lump sum withdrawal is not permitted here.