Did you know...
'Transition to retirement' could help you to minimise your income tax after you are 55.

Shona Gormley
QSuper member since 2000

Have you ever thought you’d like to ease into retirement, without having to retire completely?

Transitioning to retirement is a relatively new concept which can open up a whole range of opportunities as you approach retirement. The transition to retirement option is an account-based pension that allows you to access your super as a non-commutable income stream while continuing to work. This offers some interesting possibilities in terms of both lifestyle and tax planning.

How can I do this through QSuper?

Previously, you would have had to meet a preservation cashing condition, such as retiring after reaching your preservation age, to access preserved super.

Now, if you’re eligible you can access your super through a non-commutable income stream. You can do this by transferring all or part of your superannuation (including your preserved money) into a QSuper Pension account and drawing on it as a pension to supplement your income.

A non-commutable income stream generally does not enable you to make lump sum withdrawals, except in limited circumstances.

Am I eligible?

To be eligible to use the transition to retirement option you must:

• be a member of QSuper
• have reached your preservation age
• not have met a preservation cashing condition
• have at least $30,000 in a QSuper Accumulation account or QSuper Defined Benefit account.

You are not required to meet any working conditions. This means you can continue your current arrangements, work part-time or even work full-time in your job, and use your superannuation to supplement your income needs.

How can you use it?

You can use the transition to retirement option in a number of ways. For example, you can either:

• work part-time and use a QSuper Pension account to supplement your income
• work full-time, but use a QSuper Pension account to provide some or all of your income. You could then salary sacrifice more of your pay¹, providing potential taxation savings. (You might also take advantage of contribution splitting, and share your super with your spouse)
• combine full-time work with a QSuper Pension account and use the additional income for other investments outside of superannuation, in order to reduce non-deductible debt, or provide lifestyle improvements.

How does it work?

Basically, you nominate how much super you would like transferred to a QSuper Pension account. You will then receive pension payments to supplement your other income.

You can open this account with as little as $30,000 and even use up to the whole balance of your account (if the money is coming from a Defined Benefit account, your multiple will be reduced to cater for this).

If you’re considering the transition to retirement option we recommend you seek personal financial advice before making any decisions. You can access competitively-priced financial advice from Q Invest² on a range of issues covering superannuation, retirement planning, wealth creation, salary packaging, and personal life insurance.

1. Contribution caps apply

2. Q Invest Limited (Q Invest) ABN 35 063 511 580, AFS licence 238274. Q Invest is jointly owned by the QSuper Board of Trustees and QIC Limited. QSuper and QIC do not accept responsibility for the financial advice or services provided by Q Invest, which is a separate legal entity.

Is transition to retirement for me?

The following questions will help determine if transition to retirement may be suitable for you.