Are you contemplating a phased approach to retirement? This significant life change is not without its challenges – financially and otherwise. Our clients have found it possible to shift gears and avoid the financial concerns. Proper planning can acieve both –
- securing your financial future,
- and also help with the mental adjustment that retirement brings.
A strategic and well-crafted retirement plan is the key to seamlessly moving from active employment to that long-anticipated retirement.
Superannuation: Your Pathway to a Steady Retirement
If you’re –
- over 60, and
- have a solid superannuation fund balance,
starting a Transition to Retirement Income Stream (TRIS) could be a wise financial step.
TRIS grants you access to part of your superannuation as additional income, cushioning the financial impact of working fewer hours and providing stability as you scale back your working career.
Maintaining Your Lifestyle in Semi-Retirement
As you reduce your working hours, your income will likely decrease, but the good news is that superannuation legislation supports you in this new phase. By starting a TRIS, you ensure a reliable income stream that helps maintain your lifestyle without the pressure of full-time work.
It’s important to note that this income stream is non-commutable, meaning you can’t withdraw it as a lump sum. The most common form is an account-based pension, which seamlessly transitions into a standard pension when you fully retire or when you reach 65 years of age.
Though there are restrictions, you are required to withdraw a percentage of your account balance each year—between 4 and 10 percent—ensuring you have a consistent income flow.
Maximising Retirement Savings with a TRIS
Diminishing work hours usually means a reduced income, but thankfully, superannuation is designed to support you during this transition. Opting for a TRIS ensures you have an income stream to support your standard of living without having to work fulltime.
It’s critical to understand that this income is non-commutable; you cannot withdraw it in a lump sum. Typically, this is managed through an account-based pension, which converts into a regular account based pension upon full retirement or reaching 65.
While there are some limits, you’ll need to draw down a fixed percentage of your account each year between 4 and 10 percent.
TRIS: A Strategy to Maximise Your Retirement Nest Egg
The TRIS approach is adaptable and beneficial for:
- Supplementing your income when you shift to part-time work, smoothly closing the gap between your earnings and pension.
- Creating a tax-friendly income since pension payments are tax-free, which could mean more money in your pocket.
Secure Your Early Retirement with Confidence
At Continuum Financial Planners Pty Ltd, we specialise in superannuation and retirement planning, offering services that are specifically tailored to your unique situation. Our team is dedicated to helping you achieve a financially secure retirement, ensuring that you can enjoy your retirement with confidence and stability. We listen carefully, understand your individual needs, and deliver personalised solutions that best serve your interests.
If you’re considering early retirement or simply planning for the future, let’s discuss how we can support your financial journey. To make an appointment with one of the experienced ContinuumFP advisers –
- phone our office, on 07-34213456, or
- at your convenience, use the linked Book A Meeting facility.
Planning for retirement should not be a daunting task. With the right guidance and strategy, you can look forward to your retirement with optimism and security.
(This article was originally posted by us, in January 2024. It has occasionally been updated/ refreshed, most recently in May 2025.)
