Prepare for retirement with an income supplementing solution
If you are over preservation age and still working, you may not have full access to superannuation but may be able to start an account-based pension under the Transition to Retirement (TTR) rules. A TTR pension may also be referred to as a Transition to Retirement Income Stream, or TRIS.
Once a person reaches 65 or informs their super fund that they have met a condition of release before turning 65, their TTR pension becomes a ‘TTR pension in retirement’. This means their pension is subject to the same conditions that apply to an account-based pension.
The person can select how much income to receive each financial year. This allows flexibility to meet individual needs. The only rules for how much pension must be taken are:
For a TTR pension, the maximum income is 10% of the account balance and no lump sum withdrawals can be made.
The pension will cease when the account balance reduces to nil, or the person requests the money be rolled back to accumulation phase or another pension account. The pension can be commuted (stopped) at any time with the money rolled back to accumulation. Withdrawals cannot be made in cash unless a condition of release has been met.
Every withdrawal (income or lump sum or death benefit) from a pension is split into taxable and tax-free components in the same ratio that applied when the pension commenced. The tax on each component depends on the person’s age and you should refer to the relevant government resources to confirm this. Otherwise, discussing this with your financial planner would help to clarify any questions you may have.
If you would like to discuss your options, we encourage you to simply request a call and we will reach out as soon as possible.
Alternatively, if you would prefer to arrange a call at a time convenient for you, click here.
By providing your details you give consent to being contacted and for those details to be stored for communications, contact, marketing and relevant updates.
No spam, just carefully curated updates.
By subscribing to our newsletter you give consent to collect and store your details for communications of articles, contact, marketing and relevant updates.
Business and Licensee Information: Authorised Representative No. 1272643. Dumont Wealth Pty Ltd. Corporate Authorised Representative No. 1308337. Licensed by Alliance Wealth Pty Ltd, ABN 93 161 647 007, AFSL No. 449221. Financial Services Guide (FSG): www.centrepointalliance.com.au/fsg/aw
General Advice Warning and Disclaimer: This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. If you are not the intended recipient, please advise the sender by return e-mail, do not use, copy or disclose the contents, and delete the message and any attachments. The contents of this email may contain information that is confidential and privileged. If you are not the intended recipient or have received this email in error you are not permitted to disclose or use any information contained in it. If you are not the intended recipient or have received this email in error please notify us immediately by reply email or telephone and then delete this email and any attachments. Unauthorised use, copying, distribution or publication of this email and any attachments is prohibited. No warranty is made that this email or attachment(s) are free from computer virus or error free. The contents of this message are the views of the author and do not necessarily reflect the views of Dumont Wealth Pty Ltd or any related entity. To the maximum extent permitted by law, no person including Alliance Wealth Pty Ltd nor its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. It is based on our understanding of regulations and laws as at the publication date. As these are subject to change you should talk to a professional adviser for the most up-to-date information. By subscribing to our newsletter, you consent to marketing emails and the storage of your data.
Important disclaimer and warning
The information contained on this webpage does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Whilst all care has been taken in the preparation of this information (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Centrepoint Alliance Limited or any member of the Centrepoint Alliance Group of companies and also Dumont Wealth Pty Ltd, Dumont Holdings or any member or related companies accept responsibility for any loss suffered by any person arising from reliance on this information. The information documented on this website page is valid at the date of upload (3 October 2024) and should be reverified by the reader at the time of viewing.
