Transition to Retirement in Adelaide

Retirement Advice & Strategies

Be Prepared for Your Retirement?

The years before you retire can be challenging. While you are probably looking forward to having more time to do the things you enjoy, you may not be ready to stop working.

Many people are also concerned about whether or not they have saved enough super.

A Transition to Retirement (TTR or TRIS) strategy can assist an individual who has reached preservation* age to:

  • get access to your superannuation benefits in the form of a pension whilst still working and
  • to structure your income in such a way as to maximise your superannuation contributions prior to retirement whilst saving on personal income tax.

Whilst a Transition to Retirement strategy may not suit everyone who has reached preservation age, many individuals stand to benefit to some degree by using this very effective strategy.

What are some different retirement strategies

  • Salary sacrificing into your superannuation account (maximum amount is currently $27,500 per financial year)
  • Personal superannuation contributions
  • Investment Strategies and having the right mix of assets
  • Account based pensions
  • Annuities
  • Transition to retirement
  • Estate planning
  • Centrelink
  • Ongoing management
Planning Your retirement

Accessing your Superannuation before you retire…

A recent change in the rules regarding accessing your superannuation benefits means that you now no longer have to be retired in order to receive benefits from your superannuation fund.

In the past, the rule required that you be over the age of 55 and permanently retired from the workforce.  This has now changed. As long as you have reached preservation age, you now have access in the form of a pension income to your superannuation benefits.

On the surface, this may not seem to be such a big deal. However, the benefits can be very attractive in a number of scenarios including….

  • Individuals who would like to put more into Superannuation but simply cannot afford to do so because they still have other ongoing financial commitments including mortgages, children’s education etc
  • Individuals who would like to reduce the number of hours worked whilst still maintaining an income that is closer to the one that they enjoyed when working full time.

 To arrange a time to talk to one of our financial planners please call us on 08 8376 8168

Frequently Asked Questions about Transitioning to Retirement

This amount comes down to your individual circumstances and what you want to do once you retire. 

We recommend contact us to talk through strategies & forecasting.

There’s no set retirement age in Australia but there are some practical hurdles to clear if you want to access your super or receive a pension.

You won’t be able to access your super until you reach what’s called your ‘preservation age’ (between 55 and 60 depending on when you were born). You will also need to retire from the workforce or, if you plan to continue working part time, start a transition-to-retirement pension. Once you turn 65 you can access your super whether you’re still working or not.

  • Cut back your working hours without reducing your income.
  • The taxable component of TTR pension payments attract a 15% tax offset between preservation age and 59 and all payments are tax-free1 at age 60 or over.
  • Investment earnings are generally taxed at a maximum rate of 15%.

Depending on how you withdraw your super and at what age, there will be different tax implications worth investigating, which will depend on your individual circumstances.

In the meantime, some of the options you’ll have around withdrawing your super include:

Transition to retirement pension

A transition to retirement pension enables you to access some of your super via regular payments (once you’ve reached your preservation age), whether you continue to work full-time, part-time or casually.

This may provide you with some financial flexibility in the lead up to retirement. It can also be used as a way to fast-track your superannuation balance by making larger pre-tax contributions. There will be things to consider such as you’ll generally only be able to access a limited amount each financial year and there may be other tax consequences.

Account-based pension

If you’d like to receive a regular income when you do retire from the workforce, an account-based pension (also known as an allocated pension) could be a tax-effective option, noting the value of it will be based on the super you’ve saved, so won’t guarantee an income for life.

You also won’t be limited in what you can take out, but each year you’ll need to withdraw a minimum amount. Note, you can only transfer up to $1.7 million in super into this type of pension too.


Another option is an annuity product, which generally provides guaranteed payments over a set number of years, or the rest of your life, depending on whether you opt for a fixed-term or lifetime annuity.

They tend to be a more secure option as they provide a guaranteed income regardless of what might happen in financial markets. However, you’ll be sacrificing some flexibility as you can’t usually make lump sum withdrawals and your life expectancy may also be a consideration.

Lump sum

Taking some or all of your super savings as a lump sum can be tempting, particularly if you want to pay off debt, assist the kids, or go on a holiday. However, it might not be the best option for everyone, as you’ll need to consider how you fund your lifestyle after the money is gone.

While you may be eligible for government entitlements, such as the Age Pension, it might not cover the type of lifestyle you’d like to have after you finish working.

  • For TTR pensions in the pre-retirement phase, the minimum pension payment is 4%² up to a maximum 10% of your account balance as at 1 July of each financial year or the value from the date your TTR pension started in that financial year.
  • TTR pensions payments are usually received fortnightly or monthly. However these can be taken annually if required.