What is the Transition to Retirement Pension (TTR)?
Have you heard of the Transition to Retirement Pension (TTR)? If you or someone you know are looking to retire in the next few years, it is important to consider whether you are eligible. Setting yourself up for retirement can be a stressful thought. That’s why it is important to understand how you can save in more ways than one.
So what exactly is the Transition to Retirement Pension (TTR)? TTR pension is a federal initiative for those moving towards retirement, enabling you to reduce your work hours while accessing part of your super. This means that you can remain financially secure in spite of working less. Alternatively, you can maintain your work hours and make concessional super contributions paying less tax.
Are you eligible?
To be eligible, you must be eligible to withdraw from your super meaning that you have reached the ‘preservation’ age. This is typically between the ages of 55 and 60. You also must have an ‘accumulation super fund’. Those who are younger than 65 can draw down 4-10% from a super account-based pension each financial year.
The Transition to Retirement Pension can be extremely beneficial for those easing into retirement, however, it does mean that you will have less available during retirement. If you are unsure as to whether this would be the right decision for your family or would like more information on TTR, our APS financial planners are more than happy to help.
The team at APS Financial Planning have helped hundreds of clients set themselves up for a smooth transition into retirement. By seeking trusted advice, you too can have the peace of mind in your financial future.
Call 1300 131 809 or click here to learn more.