Transition to Retirement
Nationwide Super also offers a Transition to Retirement Pension option, called the Pre-Retirement Pension.
If you are over 56 and still working, a Pre-Retirement Pension could help you:
- Boost your super savings significantly without cutting back on your lifestyle; or
- Allow you to reduce your hours at work and supplement your reduced salary with payments from your super
How it Works
The ‘Transition to Retirement’ rules allow people who are 56 or over to use some or all of their super to start a Pension, while they are still working.
You are able to benefit from the tax advantages of a Pension:
- Pension income is either not taxable (if you are aged 60 or over) or is taxed at a lower rate than normal income (due to a 15% tax offset for people aged between 55 and 59)
- Investment earnings on a Pension account are not taxed
This extra income can be used to cut back on working hours or to fund salary sacrifice contributions back to super.
As salary sacrifice uses before-tax dollars, you can actually contribute more to super than you withdraw, so you will be able to build up your retirement nest egg in a tax efficient way.
Is this right for you?
You should seek advice from a licensed financial planner on your Transition to Retirement options and whether this strategy would be appropriate for you. We can arrange access to a Super Adviser who can help you over the phone.More about Super Advisers
Next stepsDownload the PDS & Application Form Download our Transition to Retirement Fact Sheet
Simply contact us if you have any questions about pensions or your available options.