Planning your transition to retirement – A practical guide for over-50s
After years of juggling work, family, and everything in between, the thought of stepping into retirement should feel exciting — not overwhelming.
But let’s face it: for many of us, the idea of calling it quits overnight doesn’t quite fit. That’s where a transition to retirement (TTR) strategy can make all the difference.
With a little forward planning, a TTR approach gives you more flexibility and financial freedom as you shift into the next stage of life — your way.
What is a transition to retirement strategy?
If you’re aged 60 or over and still working, you might be able to access part of your super without fully retiring.
A TTR strategy allows you to move some of your super into a TTR pension account. This gives you the option to:
Ease back your working hours and top up your income using regular pension payments, or
Keep working full-time, increase your salary-sacrificed contributions, and draw a tax-effective income from your super to maintain your take-home pay.
You can also simply leave your super where it is and keep building it through ongoing contributions.
Who’s eligible?
To get started with a TTR pension, you’ll need to:
- Be at least 60 years old
- Still be in the workforce
- Have a super balance of at least $50,000.
Typically, you’d move a minimum of $30,000 into the pension account while keeping at least $10,000 in your regular super. Your financial advisor will help you work out the best setup for your situation.
What happens after 65?
Once you hit 65, your TTR pension usually converts automatically to a regular retirement income stream — even if you’re still working. No action needed.
And yes, if your needs change, you can roll the TTR balance back into your super account.
Why consider a TTR strategy?
Here are some good reasons it might suit you:
1. Keep your super growing
You can stay in the workforce — full time or part time — while your super stays invested. Plus, after 60, pension income is tax free. Some people even choose to reinvest that income back into their super.
2. Pay less tax
Salary-sacrifice contributions are taxed at just 15 percent, which could be a lot less than your regular income tax. This smart setup can help keep more money in your pocket.
3. Retire at your own pace
TTR gives you the chance to dial things down slowly. Ease out of work without easing off your income or keep working longer without the pressure.
Things to think about
- Your workplace may not approve a reduced schedule
- Less work could mean fewer employer contributions
- Drawing a pension can shrink your super if you don’t reinvest
- TTR pensions come with drawdown limits
- Some funds may charge extra fees.
Getting started
Talk it through with your partner, your employer, and most importantly, a licensed financial adviser. They’ll help you explore your options and set things up through your super fund.
A well-planned transition to retirement can bring more balance, more choices, and a smoother path toward the life you’ve worked so hard for – especially when it is supported by a community like Living Gems. Because retirement isn’t about slowing down — it’s about living well, your way.
