Hello and welcome back to the 360 Money Matters podcast! So picture this: you’re approaching your 60s and you’re getting ready to finally retire, but your plan usually isn’t as simple as; “Today I’m working and tomorrow I’m not” Ideally, your transition into retirement shouldn’t be so abrupt, rather, it should be slow, smooth, and above all, progressive. So how do you do that?
This week, we’re going to discuss the transition to retirement strategy (or TTR). This strategy allows you to make that ideal transition because it allows you to supplement your income by drawing a regular pension from your superannuation account. (Not to be mistaken for the age pension you get from the government). Alternatively, or even simultaneously, a transition to retirement strategy can also be deployed to reduce the amount of tax that you are paying on an annual basis, without having any implications on your cashflow.
Make sure not to miss out on this episode to discover more about this strategy and so you can equip yourself with the proper knowledge and tools to get started on your own retirement plan!
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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis and Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorised representatives and credit representatives of AMP Financial Planning – AFSL 232706
Episode Highlights:
• The history of how the transition to retirement strategy came about.
• What is a transition to retirement.
• Differences between superannuation accumulation and pension accounts.
• Tax benefits and creating tax arbitrage opportunities with a TTR.
• Limitations on superannuation contributions and drawdowns to be aware of.
