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 56 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 new investment earnings tax of 15% is coming
From 1 July 2017, any investment earnings made within a TRIS will be taxed at 15%, regardless of when you opened your account. Currently there is no tax on TRIS earnings.
To find out what this could mean to you, we have prepared some case studies that look at some of the possible outcomes after 1 July 2017.
A few things to consider about starting a TRIS
Please read the 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.
- If you aren’t sure, seek some financial advice. Our financial planners can help 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 by completing this form (see section 5).
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
Which pension is right for you?
When does your TRIS become a RIS?
Complete this form to convert your TRIS to a RIS
Accessing your super
Income Stream Member Booklet
Milestone birthday coming up?
We can help you get retirement-ready