Are you thinking about retirement, but not quite ready to leave the workforce? Or maybe you’re
already retired but want to stay active in the workforce? There’s an option that allows you to do just that—it’s called a transition to retirement (TTR). A TTR allows individuals who are retiring or
semi-retiring to maintain a flexible lifestyle and career. Let’s take a deeper look at what this means for you.
What is a Transition to Retirement?
A transition to retirement is basically what it sounds like—a period of transitioning from full-time work into retirement. This can be done in one of two ways: either by reducing your working hours and supplementing your income with superannuation, or by using your superannuation savings as an income while still working part time. This gives workers flexibility when it comes to their career and lifestyle choices and allows them to continue working if they choose.
Benefits of a Transition To Retirement
One of the biggest benefits of a transition to retirement is the ability for retirees or semi-retirees to maintain their existing lifestyle without having to make major changes. Additionally, transitioning into retirement can also provide tax benefits. For example, if you are taking part in a transition plan, then you may be able to make larger contributions towards your superannuation than usual, which can
reduce the amount of tax you pay on those contributions. Additionally, if you are still employed during your transition period, then there may be other tax deductions available as well.
Additionally, transitioning into retirement can also provide emotional benefits. It can help ease the stress of an abrupt end of employment and give semi-retirees more time for leisure activities such as travel and leisurely hobbies. Lastly, transitioning into retirement also provides financial security; since retirees will have access both to their superannuation savings and their former salary (if they continue working part time), they will have multiple sources of income that they can rely on throughout their retirements years.
Transitioning into retirement is becoming increasingly popular among retirees who want continued flexibility in their lives after leaving full-time employment. With its numerous advantages–including access to multiple sources of income, potential tax deductions, and emotional stability–it’s no wonder why so many people are opting for this option when preparing for life after work! If
transitioning into retirement sounds like something that would benefit you or someone you know, we encourage you talk with an experienced financial advisor about your options today!
