If you are over 55 and still working
There are times when it is worth seeking financial advice to help negotiate the complex financial world we live in. One of the most important times is when we are moving from the wealth accumulation phase to the pension phase of life called retirement. Those over 55 and still working may be eligible to implement a Transition to Retirement (TTR) strategy that could allow you to reduce tax and maximise retirement savings without taking on any additional investment risk. A TTR strategy simply involves accessing your superannuation to commence an income stream whilst still working. 


You may be able to salary sacrifice your income into your superannuation account and commence a pension to draw your required income from the very favourable tax environment – zero tax if you are 60 and over. Alternatively the TTR strategy can help you gradually move into retirement if you no longer want to or are capable of working full time. 

The key to maximising the benefits of the TTR strategy is awareness of its availability, how to get the most out of it and most importantly taking the correct action.  Keep in mind, with the restrictions on the amounts you can contribute into superannuation the earlier you implement your TTR strategy the greater the potential tax savings.

The best way to illustrate the use of the TTR strategy is to look at a case study: Russell Investment's "Don't Get Caught Short in Retirement" is your guide to minimising tax and maximising your super leading up to your retirement through a Transition to Retirement Strategy.

The value of advice
Though 2020 DIRECTINVEST is a firm believer in DIY investing, obtaining advice when approaching retirement can be advantageous. Often it is helpful to simply get a broad overview of the strategic direction in order to make sure you are making the correct decisions in what can be a fairly technical area.  Armed with this information you can continue to research and implement your own investment decisions.

If you would like to find out more about whether a TTR strategy could be suitable, we strongly recommend fee for service financial advice as the best way to get professional, unbiased advice. Sadly, fee for service advisers are still few and far between – 2020 DIRECTINVEST Advice financial advisers provide professional, fee for service financial advice, contact our office to arrange an introduction to one of our advisers. Alternatively, you can visit our Fee for Service Financial Advice page.

Russell: Don't get caught short in retirement