Can I

Can I access my super when I am 60, but I want to continue working - this is a question I get all the time.
So today we will review a strategy when you
- continue working part time and supplement your income from your super savings or
- continue working full-time and draw income from your super savings, while improving your contributions and reduce tax at the same time.
This strategy is called Transition to Retirement or TTR
1. What is TTR and how does it work?
The easiest way to explain is with an example:
Let's assume you are 60, and your retirement savings in super amounts to $500,000.
Instead of keeping that $500,000 in a super account (accumulation phase), based on your age, you have reached your Preservation Age, which allows you to rollover the super balance to an income stream (retirement phase), and that income stream will start paying you an ongoing income.
2. When to use Transition to Retirement?
• if you want to only work part-time, obviously your wages have reduced, therefore you can supplement your income from work with extra income paid from your TTR income stream or
• If you want to continue working full time, while you want to boost your super and save on tax
3. Who is eligible for TTR?
4. How much can you draw from TTR pension?
5. Tax on TTR Retirement Income Stream
6. Benefits and Negatives of TTR:
To download the book 12 PRINCIPLES OF INVESTING:
ebook.aboutretirement.com.au/...
Contact details:
Katherine Isbrandt of About Retirement
Website: aboutretirement.com.au/
Email: [e-mail]
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[@AboutRetirementTV]

So how much tax do you think you could save with TTR?

[@perspective4517]

Hi Catherine, really enjoy your channel. Just had a thought when you mentioned Stacey at just before the 8 minute mark. In this scenario, she takes 28k as tax free TTR, then contributes 27.5k as salary sacrifice, saving around 8k in tax. From my understanding, the maximum she can salary sacrifice would be 15.5k, since her employer is contributing 12k (10% of her 120k salary). I think the 27.5k contributions cap is the employer and salary sacrifice combined. Can you clarify the situation? All the best and keep these videos coming: I think you'll hit a critical mass soon if you get mentioned by a major player in this space, e.g. one of the super funds or APIA.

[@benmills8187]

Exactly the point. She can't contribute the full 27.5K as that's the max including employer and salary sacrifice. The calculation is wrong. She will be penalised for going over the limit. IF she is pulling 18K, is she recontributing this as non-concessional (no tax deduction) back into Super to make this Tax Free to non-dependants on death? TTR was a good idea for over 55yrs till someone changed the rules.

[@walters2023]

Thank you.

[@perthpete7906]

Great video!!

[@AboutRetirementTV]

Thank you Pete, I hope it was helpful 😀

[@perthpete7906]

@@AboutRetirementTV an interesting topic is - how much tax will I have to pay on my overseas pensions

[@AboutRetirementTV]

@@perthpete7906 great suggestion, thank you Pete

[@marksanderson6090]

Hi Catherine enjoy your videos how do the rules apply around retiring after 60 taking an income stream and then getting back into the workforce is there a set period of time before you can get back into the workforce I am approaching 60 want to keep working part time but want to access my super to take a small lump sum out to pay out my home loan a ttr pension is not effective as you can’t access a lump sum only a income stream appreciate your advice mark

[@AboutRetirementTV]

Hi Mark, yes, I know what you mean. In order to access any super money before 65 but after 60, you have to officially retire from your employment. Retirement is one of the conditions of release, therefore you have access to super money and you can make a partial of full withdrawal. You can later return to work, it is your original intention to retire that matters. There is no specific timeframe mentioned that is needed to return to work either full-time or part-time. AS I said if your intention is to retire and after 6 months you change your mind, it is OK and is acceptable. I hope this helps

[@davidwest1325]

Just wondering if TTR income would affect a low income health care card?

[@sandravanbrummelen1490]

60 years old. Cut hours down by half. Salary sacrificing to get max tax benefits. Wanting to stream an amount from super to make up the salary sacrifice difference. My question is, because my steam is tax free, does that mean that if I stream $18,200, the $’s earnt from employer go straight into the 19c tax bracket… not getting the first $18,200 tax free.from employer??

[@AboutRetirementTV]

Hi Sandra, what a great question, No... your income you receive from TTR (Transition to Retirement) is fully tax free for you, but you are still eligible for the full $18,200 tax-free threshold from the income earned from your employer. This is the beauty of this strategy. Great way to reduce your tax, improve your super while enjoying a similar level of lifestyle income. 😀

[@sandravanbrummelen1490]

@@AboutRetirementTV thankyou so much. Your videos are fantastic!

[@AboutRetirementTV]

@Sandra Van Brummelen thank you, I really appreciate your comment

[@susanduncan72]

Hi I work for the Government and don't pay any tax on my employers Superannuation going into my account. Can you please tell me at age 60 will this be tax free when I come to withdraw my Superannuation or will I have to 15% tax. Thank you

[@AboutRetirementTV]

Hi Susan, thanks for watching my videos and your question. All your employer contributions create so called "Untaxed element" in your super fund, as you mentioned, the usual 15% tax has not been deducted, therefore unfortunately, once you have retired, that tax will be deduction at that point, when providing you with income payments.

[@johntay7450]

Can you explain please Downszing legislation retirment income plan? I sel my house and have $100000 We ar on pension. Thank you

[@AboutRetirementTV]

Thank you John for watching and your suggestion, Downsizer contribution is coming very soon, as it has been requested by a number of people, so obviously it is important. 😀

[@imanenigma3348]

Hi Catherine, I work permanent part time for the NSW Dept of Education. I am sixty years old and currently work 5 days per fortnight for an annual wage of $25,000 - 30,000. I have approx $615,000 in 2 super accounts $600/15K split plus some other cash $210,000. I have already maxed out the after tax contributions $330,000 over 3 years. I am wanting to reduce my work to 2 days a fortnight for an annual wage of $10,000 - 12,000. Ignoring the $210,000 can I use TTR from my $600k account to pay myself a reasonable wage say $30 - 35k per annum and salary sacrifice my $10 - 12K wage? So pay my salary but top up my super into the $15k account that my current employer uses? Does this make sense to you? Or do I salary sacrifice my total wage and use my savings until they run out? E.G $30k/per annum over 7 years. Thanks in advance.

[@AboutRetirementTV]

Hi Iman, this is difficult to answer, as I am not allowed in the general forum such as this one to provide personal advice, it is illegal for me to do so. What I can say is just make sure that you don't pay higher contribution tax than otherwise your income tax would have been.

[@imanenigma3348]

@@AboutRetirementTV Hi Katherine, Thanks for the reply. I understand your response regarding personal advice. I'm of the thinking TTR is not for me as from what I have read it is of more benefit to high earners and I am certainly not one now. I thought it may have been a way of providing an income AND adding to my super via salary sacrifice. Looking and researching other options like ETF's etc or just using my cash and going from there.