ANZ Smart Choice Super Investor Update : Member Update Winter 2013
A transition to retirement (TTR) pension allows you to access some of your superannuation while you're still working. This opens up a range of possibilities to boost your income, your lifestyle and even your super in the countdown to retirement. If you're between the ages of 55 and 65 and still working, you're eligible to join the TTR track. And with the help of your ANZ Smart Choice Super, the first step starts here. TTR rules allow working Australians aged 55 and over access to their superannuation while they are still working. This means that if you are approaching retirement you could reduce your work hours, and supplement your reduced employment income with tax-effective income from your super. However, there is no requirement to actually reduce your working hours to start a TTR account. That opens the door on some other tax- effective strategies, even if you're still working full-time. What are the strategies? 1. Lifestyle Booster -- Reduce your work, not your income TTR can help you reduce your working hours while maintaining the same income. And because some of your income is coming from the TTR account, it is a tax-effective way to draw income. 2. Super Booster -- Grow your super tax effectively It may sound hard to believe, but drawing an income from your TTR while you're still working full-time can actually help you boost your super savings, without reducing your after-tax income. 3. Income Booster -- Top-up your income using super If you have sufficient retirement savings, you can use a transition to retirement pension while you are working full-time to boost your income today. The increased income can be put to work to reduce your debt, or fund projects such as home improvements. The key rules TTR can only be started by people who have reached their preservation age (55 if you were born before 1 July 1960). They must be started with superannuation money. You must draw between 4% and 10% of your pension account balance each year, usually until retirement or attaining age 65. Lump sum withdrawals are generally not allowed from your TTR account. 22 What is transition to retirement?
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