Transition To Retirement
This whole transitioning into retirement thing doesn’t really have a lot to do with retirement. In fact once you are over 55 retirement is almost irrelevant in relation to this strategy to boost your super. It is all about working with the assets you have to do the things you have been dreaming to do over all those years. Years where you have been busy doing other things like dropping the kids off to sport on Saturday’s, school recitals, and walking the family dog that was the kids responsibility, which has somehow fallen on you!
The bottom line is that the tax man starts to loosen his grip on your hard earned and allows people with a super fund to save some tax and get some money out of super by converting to a pension. If you are over 60 it is always a good idea and for those between 55 and 60 it will often be worthwhile, particularly for those with a lower income. Who knew the tax man could be so generous! Bad news for those under 55 is it’s not an option for them.
Firstly, think of super funds as a pool of money that you put money into and pensions as a pool of money that you take money out of. We often like to think of a water tank that is off the ground… you have to work hard to deposit into the tank where it builds and builds and one day you can just turn the tap on and away you go, your new income source commences.
