Are you approaching retirement? Are you still working but want to access some of your accrued superannuation?
Superannuation is money that is meant to be accessed upon retirement but if you’ve met your preservation age which, depending on when you were born could be between 56 and 60, you can draw out a portion of your money early. This is generally known as a transition to retirement strategy.
What are the advantages?
– Access super while still working
– Reduce work hours and maintain lifestyle
– Potentially pay less tax overall
– Improve your families position if you pass away through effective tax planning.
Be aware that accessing your super monies early can have implications for tax, social security entitlements and life insurance. You should check all of these things with your accountant or financial advisor before entering into a transition to retirement strategy.
How do you start a retirement pension?
Get in contact with the administrators of your industry fund or if you are a member of a SMSF get in contact with your advisor or accountant.
If you need advice regarding tax planning or thinking about setting up a Self Managed Super Fund then get in contact with one of our FAJ specialists.
Author: Nick Vincent