More than two in five Australians aged 45 years and over who work full time and plan to retire in the future want a phased retirement and more than three in five working Australians aged 45 and over who plan to retire at a certain age are looking to work beyond age 65. The good news is that you can use your super to create an income stream to make the transition, and set a retirement date which suits you.

How can a TtR strategy benefit you?

• You may be able to maintain your income and have even more going into your super.

• You can reduce your working hours without reducing your after-tax income.

• Personal deductible contributions and/or salary sacrifice contributions into super are taxed at 15% versus the individual’s marginal tax rate

• In super, investment earnings are taxed at 15% and are tax free when earned in an income stream. In contrast, interest earned on normal savings and investments are taxed at your marginal tax rate.

• If you’re aged 55-59, income payments from a pension may be partly tax-free and will attract a 15% tax offset. If you’re over 60, your income payments are tax free.