If you are currently working full time, there is a way to give your super a boost without sacrificing your income. You can even work fewer hours for the same income. It’s called Transition to Retirement and it can be a bit like having your cake and eating it too!
It works like this: If you are aged 55 years and over, you can access your super via what is called a non-commutable income stream. This is basically a means of withdrawing regular income from your super instead of a lump sum.
However what comes out eventually has to go back in, so the next step is to salary sacrifice your earnings back into your superannuation. It’s really a switch in thinking because you’ll be kind of getting your income from your super fund instead of your job.
It may all sound a bit strange but the reason for doing this is because salary sacrificing uses pre-tax earnings. And every cent you save in tax, can go back into your super to boost your funds and your income.
This style of transition to retirement strategy is ideally suited if you currently have a full time job and an existing super fund (plus you have to be over 55). If you want to investigate whether a Transition to Retirement strategy is right for you, talk to a MyState Financial Planner today.