{"id":1451,"date":"2018-12-12T21:52:00","date_gmt":"2018-12-12T10:52:00","guid":{"rendered":"http:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2018\/12\/12\/how-to-transition-to-retirement\/"},"modified":"2018-12-12T21:52:00","modified_gmt":"2018-12-12T10:52:00","slug":"how-to-transition-to-retirement","status":"publish","type":"post","link":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2018\/12\/12\/how-to-transition-to-retirement\/","title":{"rendered":"How to transition to retirement"},"content":{"rendered":"
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Find out how to transition into retirement easily<\/p>\n<\/p><\/div>\n

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We\u2019ve given you a few tips to help you towards the next stage in your life \u2013 retirement.<\/p>\n

As you get closer to retirement, you will start to wind down and want to work less without compromising your lifestyle. That\u2019s where a Transition to Retirement Pension (TRP) could work for you. It could help you through the next stage of life when you\u2019re not quite ready to give up working yet.<\/p>\n

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Work less for the same income<\/h3>\n

If you want to ease into retirement by reducing your hours and working part-time, you can maintain your lifestyle by using some of your super to top up your income through a Transition to Retirement Pension (TRP). The key benefit of the strategy is to draw income from the TRP to replace the employment income. The taxable portion of pension payments you draw from your super (between preservation age and 59) is taxed at your marginal tax rate with a 15% rebate. If you\u2019re 60 or over, the pension payments you receive will be tax free (if paid from a taxed fund).<\/p>\n

Another strategy is to retain your current employment arrangement (e.g. continue working full-time) while maximising the amount you can concessionally contribute to your super account. Similarly, income payments drawn from the TRP can replace the income contributed to your super.<\/p>\n

You should seek advice from your financial adviser or a tax agent if you are considering a TRP, to make sure it works for you.<\/p>\n

When can you start a TRP?<\/span><\/h3>\n

You can start a transition to retirement pension as soon as you reach your preservation age:<\/p>\n\n\n\n\n\n\n\n\n
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Your date of birth<\/p>\n<\/td>\n

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Preservation age<\/p>\n<\/td>\n<\/tr>\n

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Before 1 July 1960<\/p>\n<\/td>\n

\n

55<\/p>\n<\/td>\n<\/tr>\n

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1 July 1960 \u2013 30 June 1961<\/p>\n<\/td>\n

\n

56<\/p>\n<\/td>\n<\/tr>\n

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1 July 1961 \u2013 30 June 1962<\/p>\n<\/td>\n

\n

57<\/p>\n<\/td>\n<\/tr>\n

\n

1 July 1962 \u2013 30 June 1963<\/p>\n<\/td>\n

\n

58<\/p>\n<\/td>\n<\/tr>\n

\n

1 July 1963 \u2013 30 June 1964<\/p>\n<\/td>\n

\n

59<\/p>\n<\/td>\n<\/tr>\n

\n

After 30 June 1964<\/p>\n<\/td>\n

\n

60<\/p>\n

\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

How much you can withdraw and how payments work<\/span><\/h3>\n

You\u2019ll need to draw a minimum amount of 4% a year from your TRP (increasing to 5% when you reach age 65). You\u2019ll be limited to taking a maximum of 10% a year of your account balance in pension payments until you meet a full condition of release. This could be either permanently retiring, reaching age 65, or ending an employment arrangement after age 60.<\/p>\n

From 1 July 2017, any income earned on investments in your TRP account is taxed at up to 15% (including capital gains). Once you meet a full condition of release, you\u2019ll need to notify your fund. The earnings in your pension will become tax free once you meet one of the full conditions of release.<\/p>\n


Is a TRP right for you?<\/span><\/h3>\n

If you\u2019re under 60, the pension income may affect payments like Family Tax Benefit or Child Support.<\/p>\n

Understanding what\u2019s best for you and keeping up with regulations can be complex, so it\u2019s important to seek advice from your financial adviser or a tax professional to find out if the TRP is right for you.<\/p>\n

Please contact us on |PHONE| if you seek further discussion on this topic.\u00a0<\/p>\n

Source : MLC Hatch News & insights November 2018\u00a0<\/a><\/span><\/p>\n

Important note: This provides general information and hasn\u2019t taken your circumstances into account.\u00a0 It\u2019s important to consider your particular circumstances before deciding what\u2019s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete.\u00a0You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.\u00a0 Past performance is not a reliable guide to future returns.<\/span><\/p>\n

Important<\/span>
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.<\/span><\/p>\n

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page.<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Find out how to transition into retirement easily We\u2019ve given you a few tips to help you towards the next stage in your life \u2013 retirement. As you get closer to retirement, you will start to wind down and want to work less without compromising your lifestyle. That\u2019s where a Transition to Retirement Pension (TRP) […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-1451","post","type-post","status-publish","format-standard","category-general-articles","entry"],"_links":{"self":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/comments?post=1451"}],"version-history":[{"count":0,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1451\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/media?parent=1451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/categories?post=1451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/tags?post=1451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}