Transition to retirement

A transition to retirement strategy can help you either ease into retirement gradually or up-size your super savings to fund the retirement of your dreams.

We’ll help you put a transition to retirement strategy in place so you can live the lifestyle you want to – now and in the future.

Why set up a transition to retirement strategy?

A transition to retirement strategy could help:

  • grow your super in the years before you stop working
  • ease into retirement gradually by working less
  • access some of your super early to pay off debt, take a holiday or even do some home renovations.

Who can use a transition to retirement strategy?

A transition to retirement strategy may work for you if you:

How a transition to retirement strategy works

The transition to retirement rules let you access your super while you’re still working.

You move some or all of your super into a new Tasplan transition to retirement pension account.

You can withdraw up to 10% of the balance1 each year to meet any personal goals such as debt repayment or personal expenditure.

If you’re looking to reduce your working hours without changing your income, you can use your pension payments to top up your salary or wages.

If you want to boost your super, you need to take one extra step. Once you have money coming in from your pension account, you need to ask your employer to pay some of your before-tax salary or wages into your original super account. This is called 'salary sacrificing'.

Because salary sacrifice uses before-tax dollars, you can actually contribute more to super than you withdraw, without missing much income.

The key idea is that you generally pay less tax on money your employer pays into super on your behalf than you do on money you take home in your pay packet.

There are many rules with a transition to retirement strategy, so it's best to get advice to make sure it's the right option for you.

More information about transition to retirement can be found in our Is a transition to retirement for you? fact sheet.

1 The government prescribes the minimum and maximum amounts you can draw from your transition to retirement pension each year. See Tasplan Pension member guide for details.

Next steps

We can help you to work out if a transition to retirement strategy is right for you.

Contact us