Pre Retirement Strategy: Transition to retirement
Many people will want to wind back their working hours before they fully retire. Our transition to retirement program can give you the flexibility to keep working – on your terms – without sacrificing your current lifestyle.
Our transition to retirement program can also help you save tax as you move toward retirement, boosting your retirement savings!
Contact us to make your plans today!
Transition to Retirement Case Study
Tony is aged 55 and currently employed full time earning $100,000 per annum. Some of Tony’s objectives include increasing his retirement savings and lowering his tax if possible.
Tony has heard about the Transition to Retirement strategy and would like to know if they represent a viable opportunity for him to pursue.
Tony’s current superannuation balance is $300,000 and he would like to ensure that his current net income remains the same as he would like to maintain his current lifestyle.
After implementing our Transition to Retirement strategy Tony was able to achieve the following outcomes:
| After 10 Years…. | Do nothing | Transition to Retirement |
| Gross Income at commencement | 100,000 | 100,000 |
| Annual tax income year 1 | 29,350 | 23,350 |
| Net income after tax | 70,650 | 70,650 |
| Super at commencement (age 55) |
300,000 | 300,000 |
| Combined super & pension funds at age 65 | 721,625 | 827,150 |
| Additional value created by Transition to Retirement | - | $105,525 |
As you can see, Tony was able to increase his retirement savings and reduce his tax without affecting his current lifestyle.
Assumptions: Inflation rate of 2.70% per annum with income and expenses growing at inflation, a factored growth return on their investments of 7.22% per annum in the superannuation phase and 8.22% per annum during the pension phase. Past returns are no guarantee of future returns. We have not taken into account any advice fees, service fees, or establishment fees, which would alter the results. Advice and information on this page is intended as a guide for you to consider when thinking about your financial situation. It does not take account of your personal circumstances. Therefore, consider it together with your overall circumstances before making a decision about your financial future. Alternatively, come in and speak with us about how we can help.
Advice and information on this page is intended as a guide for you to consider when thinking about your financial situation. It does not take account of your personal circumstances. Therefore, consider it together with your overall circumstances before making a decision about your financial future. Alternatively, come in and speak with us about how we can help.
Back to Top 