Transition to retirement

Build up your super or work less without reducing your income. That's the spirit.

Start your Transition Pension account now

A transition to retirement strategy lets you keep your super invested and draw a regular income while you’re still working, giving you time to get ready for the retirement you want. You can choose to keep working your regular hours (while giving your super an extra boost), or you can reduce your working hours for more work/life balance. If you reduce your hours, and depending on your personal situation, you may be able to top-up your income to your regular pay amount with your super savings.

Speak with our friendly Superannuation Advisers to find out if a transition to retirement strategy is the best fit for you. This service is at no additional cost for members - it’s part of being a Spirit Super member.

Speak with a Superannuation Adviser

To be eligible, you need to have reached your preservation age and still be working. You will need at least $20,000 in your Spirit Super account to start a Spirit Super Transition Pension.

Image of a man in business attire on the left with phone, transitions to holding a surfing board on the right

Build up

You’ve reached your preservation age, but you still need to keep working. In fact, you’re looking for ways to maximise your super so you can have the retirement that you really want.

By setting up a Transition Pension, you can draw a regular income from that account and use your current wage to increase your super contributions using salary sacrifice (subject to contribution caps). While this could increase the amount of contributions tax you pay, it could also significantly reduce your taxable income so now, overall, you could be paying less tax, and those savings will be boosting your super.

Your employer will also keep making super contributions.

This strategy could help you grow your super faster, reduce your tax and, depending on your personal circumstances, keep your income the same. That’s a win-win for you and your super!

This sounds perfect for me. How do I do it?

  1. Speak with a Superannuation Adviser to make sure a Spirit Super Transition Pension is the right fit for you.
  2. Open your Transition Pension account using a lump sum transfer from your existing accumulation super account. This accumulation account will stay active and continue to receive your regular employer contributions plus any additional contributions you are going to make. You will need to nominate the frequency and level of pension payments (our Superannuation Advisers can help).
  3. Set up salary sacrifice contributions through your employer. To offset the extra contributions you are putting into your super, you will receive regular payments from your new Transition Pension account (tax-free for those over 60). This could keep your income the same, even though you are now putting a lot more into your super.

Work less

You’ve worked hard and now you’re ready to slow down your working life just a little. A transition to retirement strategy can allow you to reduce your hours at work and supplement your income with some of your super. Depending on your circumstances, your income could even stay the same. This is perfect if you want to ease into retirement without taking a hit to your current lifestyle.

I’m liking the sound of this. How do I do it?

  1. Speak with a Superannuation Adviser to make sure a Spirit Super Transition Pension is the right fit for you.
  2. Organise with your workplace to reduce your working hours (for example, from five days to four), giving you more lifestyle flexibility.
  3. Open your Transition Pension account using a lump sum transfer from your existing accumulation super account.
  4. To make up for the reduction in salary now that you are working less hours, you will receive regular payments from your new Transition Pension account (tax-free for those over 60).
Speak with a Superannuation Adviser

Please note: If you receive Centrelink payments, these may be affected by a Transition Pension.  

For full details about how the Transition Pension works, including eligibility and fees and costs, download our Pension guide.

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