The journey towards retirement can be different for everyone. While some may be ready, willing and able to make a clean break into permanent retirement, others may want to pace their journey a little differently.
Some may not even want to think of it as ‘retirement’ but rather a change in working hours or circumstances, allowing for more flexibility to pursue other interests. The good news is that there are options available through your super that may offer you flexibility and support as you make the move into life after work.
Once you reach your preservation age, super laws allow you to begin receiving an income from your super even while you’re still working. This is achieved through what’s known as a transition to retirement pension, sometimes also referred to as a pre-retirement pension.
A transition to retirement strategy may provide a way to help supplement your salary if you reduce your work hours or semi-retire, or boost your retirement savings while you continue to work full-time.
Making use of a transition to retirement strategy may be available to you depending on your preservation age and the rules for your Defined Benefit division. These rules and your benefit entitlements can be complex so you should seek professional advice about any implications on your defined benefits before finalising any decisions. Find out more about the help and advice options available to you in our fund.
“I’m happy with what I’ve done. Transition to retirement and reducing work hours were the right decisions for me, so I could scale back and start building up relationships outside of work. It wasn’t such a shock when I fully retired.
I was 58 when I retired but I started thinking about it at around 54. I wanted to maintain my lifestyle in retirement so I salary sacrificed in the lead up to retirement; I wish I had done it sooner.”See more stories from our members
Moving from full time employment into retirement can be a big change, but it doesn’t need to be such a drastic move; there are options to help you ease into retirement. (Source: CommBank)