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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

PLANNING YOUR FINANCES FOR RETIREMENT

Why Should I Consider a Transition to Retirement Strategy?

Transition to Retirement is a big step. After spending such a large period of your life in the workforce, retirement can seem daunting. For many of us, work not only provides us with a stable income, but also gives us purpose and allows us to socialise with our peers. Transitioning to Retirement has obvious financial implications too, as after becoming fully retired, you rely entirely on your assets to supplement your income needs.

With a Transition to Retirement strategy, it’s possible to access some of your super while you’re still working. If you are aged 60 or over, you’re able to supplement your part-time income with your Transition to Retirement income account. This way you could save more leading into retirement or top up your take-home pay.

Important Considerations When Transitioning to Retirement

Prior to implementing a Transition to Retirement Strategy, there are some factors you should be aware of:

  1. Starting a Transition to Retirement Pension could affect you or your partners Government benefits
  2. It is a ‘non-commutable’ income stream, which means it cannot be taken as a lump sum
  3. You must have reached ‘preservation age’
  4. It could impact the Life Insurance cover you have within your Superannuation
  5. There may be preferable strategies to explore for your circumstances than a Transition to Retirement Pension
REDUCE YOU HOURS. RETAIN YOUR INCOME

Shifting to Part-time Work

Slowing down your working hours in the years before you retire could make the transition less of a shock. If you have been advised that your super is in a position to begin a Transition to Retirement strategy, you could possibly end up cutting back your working hours without reducing your take-home income.

If you are eligible for this strategy between the ages of 55 and 59, the Transition to Retirement payments will be taxed at your marginal tax rate plus a 15% offset. If you are over preservation age, these payments will be tax free.

Using Transition to Retirement to Save on Tax Payable

If you are trying to save more for retirement, a Transition to Retirement account could allow you to contribute more of your pay to super whilst also paying less tax.You can do this by adding to your super from your before-tax salary, through salary sacrifice. TheTTR account can also top up any additional income contributed to super and leave you with the same take home pay.

You only pay 15% tax when you salary sacrifice contributions into super, which is likely to be less than your marginal tax rate.Setting this up to ensure you are receiving the same take home pay as well as tax savings can be difficult. We only recommend doing this with the advice of a financial planner.

SECURE THE LIFE YOU WANT TO LIVE - TODAY

Why is Planning for TTR so Important?

We think planning for retirement is the most important component of financial advice because this is when you will need to rely on your assets to fund your income needs. At Yield, we believe in personalising your financial plan around what you want to achieve and where you see yourself in retirement. Leaving your plan for retirement to chance, means you are likely missing strategies that exist for you, which is why getting the right planning advice, such as a Transition to Retirement pension, is so valuable.

Testimonials

What Our Clients Say

We have entrusted our wealth creation and future security with Yield Financial Planning for a number of years now. They truly are professionals who have stayed ahead of the game by making strategic decisions at the right time and have always given sound advice. Security for our future is in great hands. Thanks Yield Financial Planning!!!

Yield Financial Planning has provided us with professional expert sound advice. It is always a pleasure to deal James and his team who always have our best interests at heart and has set up a sound plan for retirement. James and his team have provided first rate advice and funds management. I have confidence in James’s competence and integrity.

Yield Financial Planning have been excellent in their advice and investment strategies being a pleasure to work with over many years. Their strategies and constant portfolio reviews making changes when needed have guided us right through from our working days, the GFC and now retirement. We hold Yield as being an invaluable necessity.

Just the excellent service we receive and doesn’t matter how many questions we have; the staff are happy to oblige. They follow things through and let us think about important and critical matters methodically with a helping hand along the way. So overall the Journey is pleasant, professional and comprehensive yet it is explained to you what could help you or your needs.

I’ve been with Yield for more than 10 years and I’ve found the advice invaluable in helping to navigate life’s twists and turns. Highly recommended 5 Stars!

I would like to congratulate Yield Financial Planning, for their high quality of care, expertise and knowledge they have provided in ensuring my future growth is heading in the right direction. These qualities have reflected both in results and the ongoing follow up as an existing client, which I find reassuring.

Have been with Yield for a few years as my financial planners, and was very pleased when they announced their Mortgage Brokering Services – their Broker had great communication, and at no time was I unsure of where we were in the process. Being my Financial Planner, I was much more comfortable knowing they had my interests at the forefront of all negotiations – rather than getting a mortgage broker off the street who is probably aligned with a bank. From a more financial perspective, Yield saved us over $5000 per year through reduced interest payments alone – I highly recommend looking into Yield Financial

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Free Consultation

Free Consultation

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.