Reduce your working hours and access your super as additional income when you reach your preservation age.
Once you hit your preservation age, sometime between 58 and 60, depending on the year you were born, you have the option to access your super and continue working full or part time.
It’s called a ‘transition to retirement income stream’ (TRIS for short) and people choose it for a few reasons.
You might just love what you do, or you might need to work because of financial commitments.
Or you might simply prefer to slowly dial down your day job rather than stop overnight.
Either way, starting up a TRIS can be a highly tax-effective strategy to prepare for life after work.
How transitioning can work for you
Choosing a TRIS might be a good option on a personal front, but it could also have some financial benefits because of tax breaks.
If you reduce your hours, supplementing your income with super could mean you don’t take home any less in your pocket each month.
Or you can work full time and get the tax benefits of salary sacrificing into your super fund.
So while you may be drawing down from part of your super, you’re topping up as you go.Tell me more about tax and stopping full-time work
A few things to consider about starting a TRIS
Please read the Transition to Retirement Income Stream Member Booklet before deciding if this is the right product for you.
Once you've set up a transition to retirement income stream, remember:
- You can’t withdraw your whole super balance as a lump sum.
- You can withdraw a minimum of 4% and a maximum of 10% of the account balance into a TRIS income stream each year.
- Drawing down from your super could mean there is less to access when you fully retire.
- From 60 years of age you don’t pay tax on the pension payments. If you are under 60 years of age pension payments do create taxable income but this is at concessional rates.
- A maximum investment earnings tax of 15% is applied.
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In 2016, we purchased to create one of the largest member-owned financial planning networks in Australia. Combining our financial planning teams means that our members get greater access to trusted advice.
We're here with the right support and advice
We know retirement planning can be complex, so it’s wise to talk to a financial planner.
StatePlus is a wholly owned financial planning business of First State Super. They can help you determine whether a transition to retirement income stream is right for you.
What about a tax-free retirement income stream?
Once you retire completely, or you meet one of the other conditions of releaseThis may include: leaving an employer once you turn 60 or you have ceased gainful employment and do not plan to work more than 10 hours a week again, once you have reached your preservation age., you can convert your TRIS to a retirement income stream.
A retirement income stream gives you access to more of your super, offers tax free investment returns and income withdrawals and has more flexible lump-sum payment rules.I want to learn more about a retirement income stream
Your preservation age depends on your date of birth and can impact when you can access your super through an income stream.
|Date of birth||Preservation age (years)|
|Before 1 July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1961 – 30 June 1962||57|
|1 July 1962 – 30 June 1963||58|
|1 July 1963 – 30 June 1964||59|
|After 30 June 1964||60|
Learn more about TRIS
Moving your TRIS to a RIS
Complete this form to convert your TRIS to a RIS
Accessing your super
Transition to Retirement Income Stream Member Booklet
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This is general information only and does not take into account your specific objectives, financial situation or needs. Seek professional financial advice, consider your own circumstances and read our product disclosure statement before making a decision about First State Super. Call us or visit our website for a copy. Issued by FSS Trustee Corporation ABN 11 118 202 672, AFSL 293340, the trustee of the First State Superannuation Scheme ABN 53 226 460 365. Financial planning services are provided by our financial planning business State Super Financial Services Australia Limited, trading as StatePlus, ABN 86 003 742 756, AFSL No. 238430. StatePlus is wholly owned by First State Super.