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For many people, the notion of reaching retirement age and simply hanging up your hat doesn't appeal. And they opt to transition into retirement instead.
 

Transitioning to retirement allows you to start accessing your super in the form of a tax-effective pension income while you’re still working (generally after age 55).

 


How we can help with transition to retirement strategies

With the help of your BT Adviser, you may be able to use this pension income to:

  • Convert to part-time hours while maintaining your full-time income, or
  • Boost your super balance without cutting back on your lifestyle.

Talk to us about retirement planning today. Book a free, no-obligation appointment today to find out how a BT Adviser can help you plan for your best retirement.

 

Case study

Emma was 58, working full-time and earning $100,000 per year. With her first grandchild on the way and a desire to spend more time exploring her passion for writing, she wanted to reduce her working hours to three days a week.

Yet, Emma was concerned about the impact the drop in income may have on her lifestyle.

Emma spoke with her financial adviser who explained that a transition to retirement strategy would help her access an income from her super to help substitute the drop in income from reducing her hours of employment.

To do this, Emma would need to set up an account-based pension from her super, which would allow her to draw an income of between 4-10% of her pension account balance each year.

The strategy also allows Emma's pension income to be taxed at a lower rate than her regular income. The investment earnings generated inside a pension account are also tax-free, compared to 15% tax in a regular super account.

So Emma saves on tax and has extra money to enjoy in retirement.

Now aged 60, Emma is working part-time, whilst able to write and spend time with her grandchild. She meets with her financial adviser each year to review her financial plan to ensure she's on track to meet her financial goals.

Things you should know

Westpac Financial Planning FSG (PDF 107KB)

BT Advisers are representatives of Westpac Banking Corporation ABN 33 007 457 141 AFSL & Australian Credit Licence 233714 (Westpac). BT is a division of Westpac. Conditions, fees and charges may apply. These may change or we may introduce new ones in the future. Full details are available on request. Lending criteria apply to approval of credit products. This information does not take into account your personal circumstances, so you should consider whether it's appropriate for you. View Westpac's Financial Services Guide (PDF 107KB). This is an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. Read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding. Unless otherwise specified, the products and services described on this website are available only in Australia from Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. Information current as at March 2016.