Secure your business and your
future by contacting us today.

Our team is ready to talk to you about your business accounting needs and your personal wealth management strategy. We look forward to providing you with a flexible, highly tailored and truly personalised experience.

    Transition to retirement strategy

    Do you want to save more and work less?

    A transition to retirement strategy can help you make the most of your superannuation in the years before retirement.

    You’ve worked hard to accumulate it, so now make it work for you!

    How transition to retirement works

    How transition to retirement works

    As you near retirement, you can use a transition to retirement (TtR) strategy to work fewer hours, but still take home the same pay, by accessing your super early.

    Alternatively, a TtR could enable you to keep working full time, boost your super and save on tax.

    But to start with, you must have reached preservation age to access TtR options, so here’s a handy table to see if that’s you.

     Year of Birth   You can access your super at age…
    Before 1 July 1960   55
    1 July 1960 – June 30 1961  56
    1 July 1960 – June 30 1962   57
    1 July 1962 – June 30 1963   58
    1 July 1963 – June 30 1964   59
    1 July 1964 or after 60

    TtR strategies can be complex, and professional advice is a necessity, but we have outlined some key features below.

    Reduce work hours - start to slow down

    Reduce work hours - start to slow down

    If you’ve reached preservation age and you’d like to lessen your workload as you move towards retirement, you can transfer some of your super to an account-based pension and draw upon it as you work fewer hours.

    When you open this TtR income account, your super then works to top up your take-home pay… so you can work less, but still enjoy the same income.


    Ben is 60yo and earns $50,000 a year before tax. He wants to ease into retirement by dropping his working hours to three days a week, reducing his income to $30,000.

    Ben chooses to transfer $155,000 of his super to a transition to retirement pension account and withdraw $9000 each year, tax-free, to top up his pay.

    Boost your super

    Boost your super

    If you’ve reached preservation age but you don’t want to reduce your working hours just yet, you can continue to grow your super while saving on tax.

    You can do this in two ways:

    1. By salary sacrificing through your employer, or
    2. By making after-tax super contributions and claiming a tax deduction.

    You can also supplement your pay packet with regular payments from your TtR income account and reap the benefits of:

    • Paying less tax, if you are aged over 60, and
    • Supercharging your savings before retirement.


    Lucy is 60yo and earns $100,000 a year. She would like to keep working full-time for a few years. Lucy transfers $200,000 from her super to an account-based pension so she can start to TtR. She salary sacrifices into her super as she keeps working full time, reducing her income tax but also her take-home pay, which she tops up with a 10% withdrawal from her TtR pension account each year.

    Things to consider

    Things to consider

    The type of TtR strategy that is right for you will depend upon:

    • The type of superannuation you have – keeping in mind the fees you pay on your accumulation accounts and any TtR accounts you open
    • The flexibility of your employment, and whether or not reducing your hours and maintaining your position is possible
    • Your insurances, and how opening a TtR account may impact the cover available to you and your loved ones
    • Your employee entitlements when it comes to salary sacrificing
    • Your personal situation and how this can impact your working hours or after-tax superannuation contributions.
    Help and advice

    Help and advice

    It can be tricky to figure out which transition to retirement strategy best suits your needs, but we are here to help.

    Our qualified accountants have decades of experience partnering with individuals and businesses to help you today, and into the future.

    If you’d like to find out more about our retirement planning services, please contact us.