This article explains how Transition to Retirement pensions have changed post-1 July 2017 and identifies three scenarios where this strategy might still be used to great benefit.
Thanks to changes to superannuation, Transition to Retirement (TTR) pensions have lost a little of their gloss with earnings on the investments that support the pension being taxed at 15%. This applies from 1 July 2017 to both new and existing pensions.
However, that’s about the extent of the bad news. For those over 60, the pension payments remain tax-free and TTR strategies can continue to provide a number of benefits for people nearing retirement. Let’s look at some options available to 62-year-old accountant, Brian. He works full time and is on an annual salary of $100,000.
To download and use this content, make sure you're logged in then hit the Download button and choose 'Save as' to keep the document.