Transition to Retirement

For most Australians, this is age 60.

This is based on your personal circumstances for if you have met a condition of release to access your superannuation. Once you retire or attain age 65 there is generally no limit on how much of your superannuation you can withdraw, and you could take payments as a lump sum or commence a pension to receive a regular payment. A transition to retirement pension is one option to access some of your superannuation where you do not meet the eligibility conditions to access your superannuation in full. Earnings on your superannuation can also be tax free once you retire if balances are moved into a retirement phase pension, and you are then required to draw a minimum pension payment each year.

This is based on minimum and maximum pension payments legislated by the government and changes over time based on your age. The maximum prior to age 90 is 10% of fund balance per annum. Minimum percentages:

• •Under 65: 4%
• •65 to 74: 5%
• •75 to 79: 6%
• •80 to 84: 7%
• •85 to 89: 9%
• •90 to 94: 11%
• •Aged 95 or older: 14%

There are strict rules on when you are allowed to access your superannuation. It is worth seeking advice to ensure you understand your eligibility and to discuss how to best utilise your superannuation to achieve your goals in retirement.

Not all super funds offer transition-to-retirement pensions, and the legislative requirements are changed often. Best to ask your current super fund whether they offer this super option.

Generally, no, you cannot withdraw a lump sum unless you satisfy a condition of release such as reaching age 65 or retiring.

TRIS payments are subject to tax if you are under age 60. These payments will be taxed at your marginal tax rate (less a 15% offset). Once you turn 60, your TRIS payments will not be subject to any tax.