For anyone who has reached their preservation age and is still working, there is now the ability to ease into retirement.
Until recently, you could only access superannuation benefits if a ‘condition of release’ was met (i.e. turning 65, or retiring after attaining preservation age). This generally made it hard to reduce your working hours and maintain your standard of living. The introduction of a new ‘condition of release’ means it is possible for you to utilise some or all of your superannuation before you fully retire. You can make up for your reduced employment income with a regular income stream from your superannuation benefits. This is called the Transition to Retirement strategy.
Those who are still working either part-time or full-time may be able to access superannuation benefits in the form of a non-commutable income stream.
Non-commutable means that you cannot take your superannuation as a lump sum cash payment while you are still working. These income streams may be rolled back into superannuation if you decide to return to full time work, or if you do not need the extra income.
There are a number of opportunities that are opened up by the ability to commence a non-commutable income stream prior to retiring. These may include the following:
Contact our team or call us on 02 6584 4971 to get started.