If you’re looking to build up your super more quickly in the run up to retirement, then a transition to retirement (TTR) strategy could be for you. By reducing the amount of tax you pay, you can contribute more to super without reducing your current income.
If you have reached your preservation age, you can transfer some or all of your super into an Income account. You can then salary sacrifice a larger portion of your pre-tax pay into super and make up the difference in your take-home pay with a tax effective income from your Income account.
By making sure you’ve got more going into your super than coming out, your super gets a boost – plus you can convert some of the money you were paying in tax into super contributions.
There is a limit to the amount you can tax-effectively contribute to super. Read more about concessional contributions limits.
The rules about TTR strategies can be complicated, so it's important to get professional advice. Call QInvest for more information.1