What is a transition to retirement strategy?
If you've reached your preservation age and are still working, a transition to retirement strategy lets you access some of your super early. This involves transferring some of your super into a Transition Pension account and then using that account to draw a regular income stream.
What you do with this extra income is up to you (after all, it's your super), but some tried-and-true strategies can help you get the most out of it.
Choose your transition strategy
Strategy 1: Boost super and save tax
If you've reached preservation age but want or need to keep working, use your Transition Pension to give your super a boost before you retire.
This strategy involves salary sacrificing more into super each pay while also drawing an income from your Transition Pension account.
This could help you grow your super faster, reduce your taxable income and keep your current take-home pay the same. That's a win for you and your super.
Strategy 2: Ease into retirement
If you're not ready to retire but want more time to explore life away from work, you can use your Transition Pension to supplement your income.
This strategy allows you to reduce your work hours while keeping a similar weekly income.
This is a perfect option to ease into retirement at your own pace without sacrificing your current lifestyle.
You’ll need at least $20,000 in your Spirit Super account to start a Spirit Super Transition Pension.
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.
Take the next step
Not sure which transition to retirement strategy suits you? Talk to one of our friendly Superannuation Advisers. They're here to help.
Transition Pension calculator
Crunch the numbers to find out how a transition to retirement strategy can benefit you.
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