Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

What Type of Retirement Will You Be Able to Pay For?

Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

What Type of Retirement Will You Be Able to Pay For?

Article excerpt

Byline: Ashley Graham

Want to work less without losing any money?

While the idea of working less is definitely appealing, part-time work usually also means a part-time wage. Not exactly ideal when you still have bills to pay.

But now, thanks to the government's transition to retirement strategy, which came into affect in 2005, you can access your super while you're still working as long as you've reached what the government calls your preservation age.

You can take advantage of the transition to retirement option by rolling over your super account into a non-commutable allocated income stream. Once you've done that, you're ready to start receiving regular payments from your super.

This means you can reduce the hours you work without sacrificing your lifestyle since your salary is supplemented by regular payments from your income stream.

Alternatively, you can continue to work full time and use the additional income to enjoy life's little luxuries.

Or you could reap the tax benefits of salary sacrificing more of your wage into super and continue to build your retirement nest egg. If your circumstances change you can roll your non-commutable allocated income stream back into your Prime Super account at any time. It is also easy to start it up again if you decide to do so.

When you permanently retire or reach 65, your non-commutable income stream will convert to an allocated income stream and allow you to make lump sum withdrawals.

It is a good idea to talk to a professional financial advisor about your retirement options. They can help you plan for the retirement you want and help you navigate your way around the complex tax and social security issues you might face depending on how you structure your assets and income.

An income stream allows you to convert your super into income. …

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