- Super
- 2 mins
David from Wanneroo writes " I am 62 and I am moving from a full time job to a part time job. I'd like to start accessing my super to help provide income but I am not sure how to do this, can you please explain."
Congratulations on your decision to transition from a full-time job to a part-time job. Managing your superannuation effectively is a key step in ensuring financial stability during this period. Here's a guide to help you understand how to access your super:
Transition to Retirement Pension (TTR):
Age Range (60-65): Between the ages of 60 and 65, you have the option to access your super through a Transition to Retirement Pension account.
Transfer of Funds: Most people transfer the majority of their super funds into a TTR account while leaving a small balance in their super account to continue receiving contributions.
Withdrawal Range: Once the TTR pension is established, you can draw between 4% and 10% of the account balance annually.
Benefits:
- Useful for individuals still working who haven't met full condition of release from their super.
- Provides a steady income stream while working part-time.
Consideration for Changing Employers:
If you've moved from one employer to another for your new part-time job, it might be more beneficial to consider an Account Based Pension (ABP).
Account Based Pension (ABP):
Full Condition of Release: If you have met a full condition of release, an ABP may be a better option.
Withdrawal Flexibility: There is no limit on the amount you can draw from an ABP.
Tax Efficiency: Earnings on ABP accounts are tax-free, making them more tax-effective compared to TTR accounts where earnings are taxed at 15%
Benefits:
- Greater flexibility in accessing your super funds.
- Tax advantages due to tax-free earnings.
It's essential to consider your individual circumstances and financial goals when choosing between TTR and ABP. Consulting with a financial advisor or superannuation expert can provide personalized guidance based on your specific situation.
Best wishes for a smooth transition to part-time work and effective management of your superannuation.
This blog contains general and factual information and does not take into account anyone's individual objectives, financial situation, needs or tax circumstances. We strongly recommend you contact one of our Advisers if you would like personal advice.
Redpoint Investment Holdings Pty Ltd (trading as CY Financial Advice), is a corporate authorised representative (No. 378099) of CY Financial Services (AFSL No. 509648